Loan calculator software beneficial for first-time buyers

As the housing market slowly works its way to a full recovery, many individuals who are trying to become homeowners may be experiencing difficulties in the process. In order to ease some of the burden, lenders should invest in mortgage loan software. Along with an amortization calculator borrowers will be given a payment plan that fits into their financial needs.

Those who currently own property are not suffering, though, as research shows that distressed sales are making up less of the overall market – signs of much-needed improvement in housing. However, first-time buyers had the opposite happen to them, with just 34.7 percent of their sales being non-distressed. This is a drop from the previous mark of 40 percent.

According to a recent survey by Campbell/Inside Mortgage Finance, current homeowners accounted for 54 percent of October's non-distressed market, up from 50 percent in June.

But, Thomas Popik, research director for Campbell Surveys, said in the results that first-time homebuyers trying to obtain financing with low monthly payments is threatening to become a significant problem in the U.S. housing market.

"Fifty percent of first-time homebuyers use [Federal Housing Association] financing, but FHA insurance premiums are increasing and underwriting is becoming more strict," Popik told the source. "Private mortgage insurance has started to fill the gap, but the long-term status of private mortgage insurance is in question pending the publication of the Qualified Residential Mortgage regulation resulting from Dodd-Frank."

Real estate agents who responded in the survey said that the recent hike in FHA mortgage insurance premiums is hitting first-time buyers harder because some sellers are refusing to accept offers that include FHA financing.

When a real estate amortization schedule is created and accurately used, both lenders and borrowers will benefit from the process. From there, the housing market and economy as a whole can continue to gain strength.