How to use an FSA mortgage calculator

When you are looking at a mortgage, you may want to know just how much you can borrow. This will work on how much you can pay back each month and you will need to look at a repayment calculator to help you work this out. You will need to remember that you can only get an estimate with your calculation.

Search for a calculator

There are plenty of calculators around the Internet. Do a search for FSA mortgage calculator and you will find a long list of them.

How much do you want to borrow?

The first amount that you need to put in is the amount that you want to borrow. This will be the full mortgage cost minus your deposit that you are putting down. There are times when you will be able to add your taxes and legal fees into the mortgage too.

The interest rates

This is the tricky part and it makes all calculators for mortgages only give an estimate. The problem is that there are many different types of mortgages that you can take out, whether you have a variable rate or a fixed rate mortgage. You can change the type that you are taking on during the term of your mortgage, which will change the amount that you have to pay in the long-term.

How long do you want to borrow money for?

You will need to decide how long you want to borrow the money. Most people will set a term of 30 years. However, there are a few factors that you will need to consider. You can generally get a mortgage for between 10 and 40 years. The longer you have the mortgage, the more interest will be added on.

Press calculate

Press calculate and now you have your total and the mortgage payments you will need to make.

Change the amounts

If you do not like the amount that you will need to pay each month, you will need to look at changing some of the amounts. You could consider changing the term. However, you will need to remember that more interest will be added on. You may need to make the decision to borrow less money or find another way to afford the legal fees. You could also consider having a higher deposit for your house so that the loan amount will naturally decrease.