Use the mortgage calculator to determine what your monthly payment will be as well as a breakdown off all other housing related costs. The mortgage calculator is a great tool to use when trying to determine what your monthly payments and costs will be when purchasing a new home. Many times, there are additional costs that aren’t taken into consideration prior to your new home purchase, which can lead to over extending your monthly budget. The mortgage calculator will help solve that issue.
To use the mortgage calculator start by entering in the estimated home price as well as the down payment. Based on current mortgage rate trends, we have estimated the interest rate, loan term, property tax and annual home insurance. Please note that these are only estimates and will vary for each home. Annual HOA dues can also be calculated if you are considering purchasing a home or condo where they would apply.
After calculating the mortgage, the estimated monthly payment will be displayed. The monthly payment includes all housing related costs that you have entered into the boxes, including PMI (private mortgage insurance). PMI will only apply for mortgages with less than a 20% down payment.
The mortgage calculator will also display the monthly payment breakdown of all of the housing related costs, by month. Keep in mind that most mortgage institutions will require a DTI (debt-to-income ratio) of no more than 28% of housing related costs to your gross income.
This is the initial payment that will be made towards the purchase price of the home. Down payments are often expressed as percentages. A minimum down payment of 20% will avoid PMI fees.Interest Rate
This is the interest charged on the mortgage. Mortgage rates will vary depending on the lender and are most commonly fixed rates or adjustable rates, which can fluctuate.Loan Term
This is the length of time to pay off your mortgage. Most common loan terms are 15 or 30 years. Other common loan terms are 5, 10 and 20 years. The longer the length of the loan term, the more interest you will pay.Property Taxes
This is a tax assessed on real estate based on the home’s value. The property tax is collected by the government and will vary from state to state.Homeowners Insurance
This is a type of insurance designed to provide damage protection to the home or to possessions in or on the property of the home. Homeowners insurance will also provide coverage against lawsuits against accidents that occur inside the home or on the property. Homeowners insurance is a requirement from mortgage lenders.(PMI) Mortgage Insurance
PMI, known as private mortgage insurance, is a type of mortgage that protects the lender if you default on your home. It is required for borrowers with a down payment of less than 20% and will vary depending on the size of the down payment, your credit score and the lender itself.HOA Dues
HOA, known as homeowners association fees, are fees that are most commonly paid when you purchase real estate such as condominiums, townhomes or other types of property in a planned development. These fees cover the maintenance of the public areas and other items such as maintenance to the exterior of the building, lawn care, garbage collection, pool/hot tub maintenance, tennis courts or any other amenities located on the premises.