How Much Will My Mortgage Payment Be?

When you are looking for a home, a mortgage calculator can help you determine what your monthly mortgage payment is likely to be. Whether buying for the first time or moving up, having an expectation of your payment will help you know how much house you can afford.

Several factors go into your mortgage payment, including:
  • Home purchase price
  • Down payment amount
  • Interest rate
  • Length of loan
  • Insurance and fees
  Home Purchase Price 

The purchase price of your home is one factor in determining your mortgage payment. How much home you can afford and how much your lender will extend to you, may be different amounts. For example, while you may qualify for a $500,000 house, you may be more comfortable with the payment on a $400,000 house.

Take into consideration all factors before determining how much house you can afford. Try putting different home purchase prices in the mortgage calculator to see how much price changes affect your potential payment.

  Down Payment Amount 

The amount you put down on your home will reduce your mortgage loan, as well as your monthly payment. Some loan programs, such as VA loans, don’t require a down payment, while other loans can require 10,% 20%, 30%, or more.

It is typically recommended that a down payment be 10-20% of the loan, and more if you are able. Down payment amounts can also effect mortgage insurance requirements and even lower interest rate qualifications.

Use the mortgage calculator to see the impact your down-payment will make.

  Interest Rate 

Interest rates vary by lenders and loan types, and aren’t available to all borrowers. Looking for the lowest interest rate shouldn’t be your sole determining factor in choosing a mortgage, however. Fees, customer service, and closing costs can all offset any savings you see from the lower rate alone.

  Length of Loan 

Most mortgage loans span 30 years, but other options are growing in popularity, such as 15 year loans. The longer you have to pay a loan, the lower the monthly payment will be, but the overall cost will be higher. Obviously, a 15 year mortgage will be paid off sooner, but this comes at the cost of higher payments.

  Insurance and Fees 

Not all home purchases include an HOA fee, but if yours does, this should be included in your budgeted monthly amount. Condos and townhomes are likely to have this ongoing fee as part of being a resident.

Oftentimes your property taxes and HOA annual fees will be combined and divided by 12 and placed into an escrow account to be paid at the end of the year when they are due. This will be added to your monthly mortgage payment.

  When shopping for a home and determining how much mortgage you can afford, a mortgage calculator and a knowledgeable mortgage lender are invaluable.  It is highly recommended that you, as a buyer, know your budget prior to looking for a home.  This will save you time and energy and help your realtor greatly in preparing your search.  Contact us today to learn more.

If you are interested in using the 184 Loan program for purchasing, building or refinancing a home, please give us a call.  We can discuss your goals and how the 184 Loan Program might work for you.  Give us a call at 888-639-2517, he will be more than happy to talk through the process.

    Call Today!  (888) 639-2517