The leap of faith. Committing your life to a mortgage.
It doesn’t have to be that dramatic! If you’re planning to buy a house yet unsure if you can afford it, go ahead and try this calculator out.
It will determine how much you can afford. By entering the loan amount, the annual percentage rate (APR) and the duration of the loan.
What is a mortgage?
One of the most common forms of debts, mortgage is a loan offered by a mortgage company, bank or other financial institutions for the purpose of acquiring a property.
Under a home loan, the title of the property is transferred by the owner (borrower) to the lender (banks or financial institutions) as collateral (guarantee). It would be transferred back to the owner once the mortgage is fully paid and all other terms are met.
This gives more people the chance to own a home as the entire payment of the house does not need to be provided up front. A person wanting to secure a mortgage must submit an application and the information on his/her financial history to the lender to prove that he or she is capable of repaying the loan.