Payment Calculator

Setting your home-buying budget involves a mix of short-term and long-term planning. Besides what you can afford today, you need to know how much you can afford to pay in the next few years. LagunaOC.com offers an online payment calculator to help you estimate the monthly expenses that come with your new home. Our agents can also help you figure out your buying capacity, so you'll know which Laguna Beach homes you can realistically afford.

Several factors go into determining mortgage payments, and each one weighs in differently from one buyer to another. In most cases, the following factors usually come into play:

Down Payment

The larger your down payment is, the less you'll have to borrow from the bank and thus pay for afterwards. While some banks offer a zero-down plan, these usually come with larger monthly payments and often a higher interest rate, since you're considered a risky borrower. Most banks consider a down payment of 20% of the home value ideal.

If you can't meet the 20% mark, you can look into government-backed loans such as VA or FHA mortgages, which have some of the lowest down payment minimums. Some banks also offer down payment assistance programs wherein you finance the down payment separately from the principal.

Interest Rates

The interest is a percentage of the principal charged on top of the monthly payments. This is basically a payment to your lender for taking you on as a borrower. Interest rates depend mostly on the type of mortgage you have-some stay fixed for the life of the loan, while others fluctuate according to market conditions. Other factors such as your borrower risk profile, current prevailing rates, and the amount of the loan can also affect your interest rate. Before settling for a lender, compare different quotes so you know what's too much and what's reasonable.

Credit Score

Your credit score paints a general picture of you as a borrower. It takes into account various financial factors such as your income, employment, total debt, and payment history. Every time you make a financial transaction, banks report it to the three main credit reporting agencies: Equifax, Experian and TransUnion. Missed or late fees will be counted against your score, while timely payments and a steady credit history can pull it up.

Credit scores range from 300 to 850 points; most banks consider a score of 750 or more to be ideal. With a higher credit score, you can get better rates, more comfortable loan terms, and a wider range of options for Laguna Beach homes.

Payment Calculator

Setting your home-buying budget involves a mix of short-term and long-term planning. Besides what you can afford today, you need to know how much you can afford to pay in the next few years. LagunaOC.com offers an online payment calculator to help you estimate the monthly expenses that come with your new home. Our agents can also help you figure out your buying capacity, so you'll know which Laguna Beach homes you can realistically afford.

Several factors go into determining mortgage payments, and each one weighs in differently from one buyer to another. In most cases, the following factors usually come into play:

Down Payment

The larger your down payment is, the less you'll have to borrow from the bank and thus pay for afterwards. While some banks offer a zero-down plan, these usually come with larger monthly payments and often a higher interest rate, since you're considered a risky borrower. Most banks consider a down payment of 20% of the home value ideal.

If you can't meet the 20% mark, you can look into government-backed loans such as VA or FHA mortgages, which have some of the lowest down payment minimums. Some banks also offer down payment assistance programs wherein you finance the down payment separately from the principal.

Interest Rates

The interest is a percentage of the principal charged on top of the monthly payments. This is basically a payment to your lender for taking you on as a borrower. Interest rates depend mostly on the type of mortgage you have-some stay fixed for the life of the loan, while others fluctuate according to market conditions. Other factors such as your borrower risk profile, current prevailing rates, and the amount of the loan can also affect your interest rate. Before settling for a lender, compare different quotes so you know what's too much and what's reasonable.

Credit Score

Your credit score paints a general picture of you as a borrower. It takes into account various financial factors such as your income, employment, total debt, and payment history. Every time you make a financial transaction, banks report it to the three main credit reporting agencies: Equifax, Experian and TransUnion. Missed or late fees will be counted against your score, while timely payments and a steady credit history can pull it up.

Credit scores range from 300 to 850 points; most banks consider a score of 750 or more to be ideal. With a higher credit score, you can get better rates, more comfortable loan terms, and a wider range of options for Laguna Beach homes.