The reason they do this, it seems, is to channel users to a particular mortgage site - kind of like some form of advanced clickbait.Īnd again, they aren’t lying and their calculations aren’t necessarily incorrect, but they leave out some pretty important costs that could significantly increase monthly payments. This gives online shoppers a false sense of affordability, leading homebuyers, and especially first-time homebuyers, to think they can afford a pricey home when they probably can’t. Usually, mortgage calculators strategically leave out important costs and information, providing users with a best-case scenario. It’s important to remember that mortgage calculators as tools aren’t completely incorrect and they’re not trying to purposefully miscalculate your mortgage, but their estimates can be somewhat misleading. How Mortgage Calculators can be Misleading As explained below, mortgage calculators are never 100% accurate and homeownership isn’t as affordable as they make it seem. Unfortunately, however, this is far from the truth. So, to put homebuyers at ease, they provide mortgage calculators - easy, plug-and-play tools that make homeownership appear affordable. The last thing they want is for a potential buyer to be overwhelmed with sticker shock before even talking to a realtor. So while monthly payments can be pretty large sums of money, mortgage companies don’t want you to think that (at least not initially). That’s because mortgage companies, to include the ones that offer calculators, are in the business of selling homes. Most calculators, like those from real estate giants Zillow and Redfin, show you a pretty decent estimate of your potential monthly payments, but they don’t exactly include every expense or expand on the details of how they came to that estimate. We are always working to improve Zillow’s apps.Mortgage calculators are a great way to figure out if you can afford a home, but depending on which one you use, some may be more accurate than others. Easily share results with your spouse or partner from the app.HARP quoting provides custom refinance rates for homeowners who are upside down on their mortgage.Find a HELOC lender to see if you can tap into your home equity.Compare the latest refinance rates to see if you can lower your interest rate.Refinance calculator estimates your breakeven point and shows money savings over time.“Call lender” function allows you to contact lenders directly through the app.Rate history makes it easy to come back and compare past rates with current quotes.Find a local lender to discuss your loan options and help you get pre-qualified to buy a home.Get real-time mortgage rates based on your location and loan requirements. Compare mortgage rates, APRs, fees, monthly payments, loan lengths and more with customized quotes from 100+ lenders.Estimate your monthly mortgage payment with our mortgage payment calculator.Find out how much you can afford to spend on a new home with our home affordability calculator.Remember, it’s best to talk to at least three different lenders when shopping for a mortgage to find the right loan for you. Our app makes it easy to reach a local lender, whether you’re looking to purchase or refinance a home. Find a local lender in minutes who can help you get pre-qualified for a mortgage, and show sellers that you’re a serious and credible buyer. Use Zillow calculators to find out what you can afford, and gain control of the home-finance process with live, customized mortgage rates from multiple lenders, all in one place. Homeownership may be closer than you think.
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