Bath Savings Institution Introduces New Mortgage Calculator
Bath Savings has introduced a new mortgage calculator for consumers to use when looking to buy a home. The purpose of the calculator is to give prospective homebuyers an estimated calculation of how much house they can afford on their current budget.
The calculator takes many factors into consideration and is broken into three steps. The first step is to determine the loan amount that a homebuyer can afford based on their target monthly payment amount. It takes into account real estate taxes, home insurance, and homeowner association fees. The second step is to determine whether or not the homebuyer is likely to qualify for the loan amount determined in step one. This step takes into consideration monthly income and monthly debt, to determine the applicant's debt-to-income ratio. The final step helps identify what total cash needs will likely be depending on whether the buyer applies a 20% down payment or an alternate minimum down payment.
Executive Vice President of Retail Lending, Sherry Tremblay, says this calculator will answer the most common question that homebuyers have: “How much house can I afford?” Tremblay says, “This calculator is based on an excel sheet that our lenders are already using with potential homebuyers. It really gives them a good idea of what they can afford based on a monthly payment that they are comfortable with, while also taking into consideration their debt-to-income ratio.”
The calculator is now live on Bath Savings' website at https://www.bathsavings.com/personal-lending/mortgages/mortgage-calculator-and-costs.