Financing Calculator

Understanding Home Financing

Home financing is one of the most important financial decisions you'll make. Understanding different amortization systems and how they affect your payments can save you thousands of dollars over the life of your loan.

SAC vs PRICE Systems

SAC (Constant Amortization System): In this system, you pay the same amount of principal each month, but the interest decreases over time. This means your monthly payments start higher but decrease throughout the loan term. You'll pay less total interest with SAC.

PRICE System (Fixed Payment): With PRICE, your monthly payment remains the same throughout the loan term. Early payments consist mostly of interest, while later payments have more principal. This system offers predictable monthly payments but typically costs more in total interest.

Factors Affecting Your Mortgage

• Down Payment: A larger down payment reduces your loan amount and may qualify you for better interest rates
• Interest Rate: Even small differences in rates can significantly impact your total cost
• Loan Term: Longer terms mean lower monthly payments but more total interest paid
• Credit Score: Better credit typically qualifies you for lower interest rates

Tips for Getting the Best Financing

• Shop around with multiple lenders to compare rates and terms
• Improve your credit score before applying
• Save for a larger down payment to reduce your loan amount
• Consider the total cost, not just monthly payments
• Factor in additional costs like insurance, taxes, and maintenance

Use our financing calculator to compare different scenarios and find the option that best fits your budget and financial goals. Remember that the lowest monthly payment isn't always the best deal – consider the total amount you'll pay over the life of the loan.