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Clara Said:

Online calculator? I type in my salary and it will tell me how much mortgage I can take out?

We Answered:

UK reply

Agree with 2nd answer re 3.5 x salary but in the UK there is an even bigger importance now!

If you haven't got 20% deposit - forget it! That is 20% in real money not borrowed from someone else!

Banks do not want to lend anyone at present, so they will only lend to the best possible repayers!

Also in the UK now is not the time to buy!
Houses have dropped 16% in the last year. Projected to drop 15% this year, could be more!

Natalie Said:

Please calculate the amount of interest on this mortgage?

We Answered:

Just google
Mortgage amortization calculator.
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Martha Said:

Can someone please explain mortgage repayment amounts to me?

We Answered:

The calculators are right, an amortization table will show exactly how it works. You pay the interest rate on the balance annually, If you're looking at 10% rates and 20 year terms. 1% of the total loan amount is pretty close to what the payments will be.

Linda Said:

How can I calculate the shortest term I can pay off my mortgage?

We Answered:

It depends on the type of mortgage you have many standard repayment mortgages have a limit on how much you can over- pay in any one year. Flexible mortgages however allow you to payback any amount whenever you like; on mine I can increase payments on-line and the system tells me how much money I will save over the term as a result, it also tells me how many years I shaved off the term.

Dawn Said:

Can you borrow more with an interest only mortgage?

We Answered:

Yes you would have a higher borrowing power than normal, but it take in to account your finacial history like such things as credit ratings etc. By the sounds of it , if the property does cover the cost of the interest in may be a good decision to get an "interest only loan".as well as if you would were looking in to cashing in on the rise in property value after a period of time, meaning under 5-7 years.
You might want to take in to account the cost of the porperty its self because after a period of time you will have to pay the remaining amount in a lump sum.

If you were looking to keep this property for along period of time, a normal home loan would suit you better.But if you were looking to sell with in the next 5-7 years then go with the interest only.

A principal and interest loan are still the most common type of home loan. Loan repayments include interest and principal, allowing you to repay the loan in full by the end of the loan term, assuming they make the minimum repayments.

With an interest only home loan, repayments only cover the interest component. The principal is repaid in full at the end of the loan term.

Because borrowers only repay the interest component, interest only loans have lower repayments than principal and interest loans.

The simpy way of looking at an interest only loan is.........................
lower repayments
loan terms typically between two and five years
repay principal in full at the end of the loan term

Sarah