By Dylan Afuang
At your age, your present level of income, and the price of the home you want to purchase – do you have what it takes to qualify for a home loan? You don’t have to bring out a sheet of paper and dabble in some mathematic equation, you just have to go online and look for "home loan calculators."
In fact, a lot of banks have websites that feature such calculators. These can help you make a safe and informed decision – and ultimately, make that dream to own a first home much more attainable. Add to that, you don’t have to personally appear in the bank just to make the inquiry.
A research into the various online home loan calculators show that they all look different but almost all have the same factors that you need to input.
As a start, a lot of banks’ website first show you what kind of housing loan they offer.
Then, the online calculator has blanks asking you for details such as down payment or initial payment, loan amount, the selling price of the property, monthly amortization and payment terms in years.
Some calculators even compute how much income the loan applicant should have in order to pay off the loan. Moreover, they also compute figures
such as the interest rate of the loan, which means the proportion of a loan that is charged as interest to the borrower.
One of the most user-friendly home loan calculator can be seen online through a bank's website. It will just ask you three details: 1) Your annual income; 2) How long you want the loan to be; 3) The value of your desired property. After that, just click the "Calculate" button, then voila! You will know how much you have to pay each month for the loan.
For example, you have an annual income of P600,000 (or P50,000/ month) and your desired home is worth P3 million. If you want a loan term of 15 years, then you have to pay at least P19,200+ per month (with required P600,000 downpayment).
If you want the loan term for 20 years, then monthly payment is at P16,100+.
Meanwhile, one housing loan calculator asks what kind of property the applicant wants to purchase, if it’s a house and lot, condominium, or lot. Then, the selling price will be asked and the choice for down payment of between 20 to 50 percent. The longest payment term is 10 years, the calculator shows.
The computed results reveal the down payment, amount financed and monthly amortization – all based on the selling price. The computation is based on a one-year fixed rate, the results write.
So whatever online home calculator you use, it is now easier to envision if you can truly afford an actual home, or it remains to be a dream home for the moment.