Loan Comparison Calculator Tool

 When it comes to mortgages, many people get caught up in the interest rate. They love the idea of having a low rate, but they often forget that a mortgage is still a debt that needs to be repaid. 

At the Gifford  Group, we specialize in helping people make informed decisions about their homes, especially when going through a divorce. We understand that keeping the house may be important to one spouse, but it's crucial to assess whether it's financially feasible. That's why we've developed the loan comparison tool, which can be used for refinancing or buyouts. 

In this article, we'll explore the key features of this tool and how it can help you make the right decision for your situation. 

This quick guide will show you how to use it in a snap for smarter money moves.

Visit our site and find the Loan Comparison Calculator – it's your ticket to financial clarity. Don't Delay! 

Enter your current mortgage info – amount, interest rate, and remaining term. Let the calculator do its thing to give you the lowdown on your existing mortgage.

 To help you assess the affordability of keeping your home, we've developed the loan comparison tool. This tool allows you to input your current mortgage details, including the loan amount and interest rate.  

You can also add any other monthly debts you have, such as credit card payments or personal loans. The tool will then calculate your total monthly debt payments. Additionally, you can choose to include the refinance costs associated with getting a new mortgage. By inputting all this information, you can get a clear picture of your cash flow and whether it makes sense to roll in your debts. 

Here's the cool part. You can add other debts like credit card balances.

 A. Input the outstanding Balance in the 1st column 

B. Input the current Monthly Payment in the 2nd column. 

 By amortizing the debt over a longer period, such as a 30-year mortgage, the monthly payment can be lower, providing better cash flow.  For example, a client with a $600 monthly car payment was able to reduce it to $250 by rolling it into a 30-year mortgage, saving $350 per month. 

See how rolling in other debts into your mortgage can free up cash monthly. Mortgages often have better rates and a 30-year timeline, this allows you to save money money and use future dollars to pay down your debts. 

 The loan comparison tool takes into account the refinance costs associated with getting a new mortgage. While these costs may vary, it's important to consider them when evaluating your cash flow. By including the refinance costs, the tool provides a more accurate representation of your monthly payment. 

For example, if your current mortgage payment is $1,551 and your total monthly debt payments are $2,576, the tool will calculate your new total payment based on the refinance costs. This allows you to see whether rolling in your debts will result in a lower monthly payment and improved cash flow. 

In the calculator, you are shown a side-by-side comparison of your current mortgage and total monthly payment along with a new scenario with a Single Monthly Mortgage Payment. Check out the payments and overall savings. 

When assessing affordability, it's important to consider your debt-to-income (DTI) ratios. The Federal Reserve recommends a DTI ratio of 28% or lower, but when refinancing, you may be the sole borrower, making a DTI ratio of 40% more feasible. 

However, pushing your DTI ratio to 42% or 45% may require careful consideration of your other financial obligations. The loan comparison tool allows you to adjust your DTI  ratio and see how it affects your affordability. By inputting your gross income, the tool will calculate how much you need to make monthly or yearly to afford the mortgage. This information can help you determine whether keeping the house is financially viable.

Choose Financial Freedom:

Armed with insights, make a call. Go for the scenario that saves you cash monthly and aligns with your long-term money goals. Maybe consolidate those high-interest debts into a mortgage for a smarter, wallet-friendly approach.

Ready to Apply today!

 At the Gifford Group, our mission is to help you make informed decisions about your home during the divorce process. Our loan comparison tool and buyout calculator are just some of the resources we offer to assist you in assessing affordability.  We understand that keeping the house may not always be the best option, especially if it's financially burdensome. Selling the home Fast. 

The Seller's Net Sheet from The Gifford Group provides a clear breakdown of expenses and estimated proceeds, ensuring you have a realistic picture of what to expect. 

By considering your cash flow, debt ratios, and potential buyout scenarios, you can make a well-informed decision about whether to keep the house or explore other options. We understand that every situation is unique, and we're here to provide the support and guidance you need. Contact us today to schedule a  consultation and take the first step towards making the right decision for your future. 

Our loan comparison tool is just one of the resources we offer to help you assess your situation. We can also connect you with professionals such as  Certified Divorce Financial Analysts (CDFAs), attorneys, and therapists who specialize in divorce cases. By working together, we can help you determine whether keeping the house is the right choice for you.

Our Loan Comparison Calculator is more than a tool – it's your key to allowing you to stay in the home and remain financially secure. 

Quickly compare your current mortgage with new options, toss in other debts, and Look at your cash flow. 

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