A new collection of tools has been released by Google and the Consumer Financial Protection Bureau (CFPB) with the goal of assisting homeowners in their research and comparison shopping for mortgages. A mortgage calculator, current mortgage rates, definitions of essential words, and answers to frequently asked questions like “What is a mortgage?” and “What is PMI?” are all part of the lineup.
Search for “mortgage” on your smartphone (so far, it’s a phone-only function) then browse through the advertisements to find the tools. Here is a brief overview of the data available.
- In order to make it simpler for prospective homeowners to understand about mortgages, Google and the Consumer Financial Protection Bureau have developed a collection of tools.
- On your phone, search for “mortgage” and scroll through the adverts to see the tools.
- The material, which contains mortgage jargon, rates, and a calculator, is provided by the Consumer Financial Protection Bureau.
What Is a Mortgage?
What is a mortgage is one of the mortgage-related queries that was most often searched in the previous year, according to Google Trends.
A mortgage is defined as “an arrangement between you and a lender that enables you to borrow money to acquire or refinance a house and provides the lender the right to seize your property if you fail to repay the money you’ve borrowed,” according to the overview page of the new Google mortgage function. A link to the CFPB, where consumers may get further information, is provided below the description.
Below that, you’ll discover a collection of important mortgage words, from APR (annual percentage rate) to subprime mortgage, organized in alphabetical order. A “search the web” option is also provided for each phrase with a short description. You may filter by category to locate certain keywords more quickly:
- Popular terms
- Interest rates
- Loan types
- Mortgage process
- Home purchase process
The interactive tool on the rates page displays the current average rates for a number of well-known loans, including:
The website by default displays three different mortgage types: the 30 year fixed, 15 year fixed, and 10/1 ARM. By choosing up to five plans and clicking the “+Add loan type to compare” link, you may compare more loan kinds. This is how it appears:
Use the dropdown boxes to choose your state, credit score, loan amount (available in $100K increments), and the amount of the down payment you want to make in order to evaluate rates. You may find more top news headlines as you scroll down, as well as common next actions like “Calculate your monthly payments” and “Learn about credit.”
A mortgage calculator may be a useful tool for creating a budget for these expenses.
Your state, credit score, loan amount, loan duration, and interest rate are all taken into account when calculating your monthly mortgage payment on the calculator page.
To obtain a better idea of your total monthly house payment, you may choose to add property taxes, homeowners insurance, private mortgage insurance, and homeowners association (HOA) dues (switch to “Include taxes & fees”).
You may obtain an indication of how much home you can afford by using the “Purchase budget” page, which is adjacent to the “Monthly payment” tab, depending on information you provide about your:
- family income per year (before taxes)
- recurring debt (credit cards, loans, etc.)
- Down payment
- Loan term
- Interest rate
- Credit score
Based on a debt-to-income (DTI) ratio of 36%, the purchasing budget total calculates how much you can buy. Your monthly mortgage payment and other debt payments, such as those for credit cards and student loans, shouldn’t be more than 36% of your household’s yearly pre-tax income.
The Mortgage Process
First-time homeowners and those who need a refresher on the mortgage procedure may find the process page to be of particular use. Apparently, Google “Regardless of where you are in the [mortgage] process, you may choose a stage to get a list of pertinent papers and advice from the CFPB. You’ll also discover a list of well-liked and suggested next actions to assist you decide what to do next.”
The process page is broken into four categories, each with a list of relevant issues and a link to the CFPB website where you may learn more. These are the four groups:
- Learn how to check your credit, evaluate your expenditures, develop a loan application package, and budget for additional costs under the “Get Ready to Shop” area.
- Investigate your loan options—Here, customers may find out more about loan fees, various loan kinds, assembling paperwork, and choosing the ideal property.
- How to compare loan offers: This item contains advice on how to get several loan estimates, go over loan estimates, adjust loan offers, and other related things.
- Prepare to close—the last item includes information on getting title insurance, arranging a house inspection, and looking for homeowners insurance.
Other sections include links to resources like news stories and relevant search results, including:
- Refinance—Links to the most popular refinancing news stories from today as well as answers to frequently asked topics like “Why refinancing is a poor idea” and “When should you refinance your mortgage?”
- News: Displays a list of online articles on mortgages.
- Relieves—Offers the best outcomes from the CFPB, Fannie Mae, the Federal Housing Finance Agency (FHFA), and financial news sources like Investopedia.
- Types: Links to articles with information on the different kinds of mortgages as well as answers to frequently asked questions such “What are the different kinds of mortgages?” and “What kind of mortgage is the best?”
- Videos—Lists videos on mortgages from various content creators.
- History – Links to articles on the development of mortgages on the internet
The Bottom Line
The majority of people’s greatest single investment is buying a house, and most homebuyers need a mortgage to make it happen. Before selecting a loan, it pays important to conduct your research and familiarize yourself with your possibilities since a mortgage is a long-term investment (and a lender).The new mortgage tool from Google and the CFPB intends to make it simpler for you to research your alternatives.
Only smartphones are now capable of using the function. Watch to see if a tablet or desktop version becomes available in the future.
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