What is the FCC mortgage calculator?
Farm Credit Canada is a federal Crown Corporation and a lender that supports Canadian agriculture and food industries. Still, aside from that, it offers a wide range of banking services, including mortgage financing. The decision to take out a loan is an essential milestone in a person's life and should be based on a more solid foundation than the lender's marketing offer.
The FCC mortgage calculator is a tool developed by FCC professionals to help its clients compare loan options offered and see what makes it possible to make a significant purchase, save money on monthly and down payments and successfully repay the loan.
This mortgage calculator is easy to use and does not require entering credentials. It will not give you the total cost of a mortgage because of property taxes and cash outlays, but as far as the credit side goes, you can find out what to expect and plan for changes to your budget.
As a downside to this calculator, someone might say there is no way to compare the FCC mortgage to similar products from other lenders. Still, many banks provide loan calculators intended only for their loan products.
It should be noted that any mortgage calculator only performs operations on the numbers you enter. The result is accurate, but it may not mean that the financial institution will give you a loan in the amount you entered, which was the basis for your calculation. There is a reason why such calculators are for informational purposes only. Even though some loan calculators ask for your credit score, they have no way of verifying that this information is accurate and complete.
You can test as many variations on interest rates, mortgage amount, payment terms, etc., and see the potential loan load for long-term mortgages.
The FCC mortgage calculator cannot replace the consultation of a mortgage specialist or financial advisor. Still, it is handy because you do not have to spend time on long calculations and massive tables and graphs. Instead, when you enter your numbers (interest rate, payment frequency, amortization period, principal, etc.) into a mortgage calculator, you receive such valuable information as monthly payments or prepayment charges in a blink of an eye.
There are a few things you can only find out if you make an appointment with a mortgage specialist:
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the tax amount related to the transfer of real estate;
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municipal and provincial taxes;
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the cash outlay for the deal;
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variable VS fixed rate options, etc.
Why do you need the FCC mortgage calculator?
If you choose an inadequate mortgage, the interest rates are far too high, and the loan amount is too significant compared to what would be more realistic under your financial circumstances. However, if you manage your personal budget, it is easier to determine the reserves you have for purchasing a property, and based on this amount, you can start calculating. The FCC mortgage calculator facilitates the process for you and delivers the result immediately.
If you are unsure how much the property might cost, you can look at market listings in the area where you'd like to live. Once you have the initial numbers, it's worth calculating what mortgage term would imply the best and most affordable monthly payments. You should also look at how much you would pay for the loan with each lender and how much interest you will have to pay constantly until the loan is paid.
All of these tasks can be accomplished with the help of a mortgage calculator.
How to use the FCC mortgage calculator?
Find the search icon on the FCC homepage. Enter "Calculator" in the field and press the "Enter" key. You will be offered three tools: mortgage, equipment, and lease. Choose "Mortgage."
The first step is to determine the type of property and price limit you want to finance. Once you have initial clues, you can start entering data into the calculator:
1. Choose the payment frequency you want:
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annually;
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semi-annually;
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quarterly;
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monthly;
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bi-weekly;
2. Enter the mortgage amount according to the information on the desired property value and the available down payment you have, and choose an amortization period from 1 to 29 years;
3. Calculate and get the result for your data.
In less than a minute, you will get information about the possible cost of your loan, the beginning and ending balance and the interest paid.
Calculation results are for informational purposes only to have a general idea about the FCC lending services.
