Mortgage Payment Calculator

Mortgage Payment CalculatorThere are dozens of mortgage payment calculators online but none that will give you the detailed guidance below. We aim to provide additional information with our calculator that others don’t.

In our detailed guide to buying a house, using a mortgage payment calculator to get an idea of an estimated overall monthly payment was one of the top steps to take before applying for home loans or getting pre-qualified. Many home buyers don’t have a great grasp on what a payment is going to run, which ultimately leads to looking at homes that you think you can afford (when you may not be able to).

Using a payment calculator is highly important to make sure you’re looking and shopping for what you can truly afford in your monthly budget. There is nothing worse when a borrower gets their hopes up on a particular property only to find out the mortgage payment is significantly higher than they expected.

Other Mortgage Payment Calculators:

Helpful Resources:

DID YOU KNOW?  A mortgage payment is typically comprised of 4 components: the loan payment (P&I or principal and interest), Property Taxes, Homeowner’s Insurance (HOI) and Mortgage Insurance (PMI). Our calculator will help you estimate all four aspects.

Before using the mortgage payment calculator below, use these helpful tips:

  1. Loan amount – how much you plan to borrower after your down payment. If you’re unsure about down payment requirements or mortgage options, check out our home loans guide.
  2. Property value – purchase price of the home or what you think it’ll appraise for if you’re doing a refinance.
  3. Interest rate – rates vary based on loan program and can be heavily dependent on credit score. Give one of our licensed loan advisors a call and we can provide you some quotes and personal options. As of today, rates range anywhere from 4.375%-5.500% on a 30-year fixed in most instances, but will vary based on loan program, credit score, term and down payment.
  4. Loan term – the longest and most common mortgage term is 30 years, but there are options for 25, 20, 15 and 10. The term itself is the most important factor in your payment amount and how much money you save over the loan.
  5. Property tax – your county or parish assesses property taxes and they will vary with each home.

For Property Tax estimates in your state, see below to find your state's average tax rate. It’s based off a percentage of the purchase price.

  1. Property Insurance (Homeowner’s Insurance) – if you have decent credit and buying a newer home use .45% of your loan amount for a decent estimate. Use .55% if you’re buying a older home or have fair/poor credit (low-to-mid 600’s). If you live in a flood zone or may need hurricane coverage, your premiums will likely be higher.
  2. PMI (Private Mortgage Insurance)
    1. FHA loan use .85%
    2. USDA loan .35%
    3. VA loan use 0%
    4. Conventional loan use .96% (if 5% down), .65% (if 10% down or qualifying first-time buyer with 3% down), or .28% (if 15% down). Use 0% if putting 20% down.

PMI for the conventional mortgage are estimates only and should be used for calculating initial payments. Always call one of our loan advisors for more precise estimates.

 

While using a calculator to estimate your mortgage payment is a great first step, once you’re ready to look at the home loans that best fit your goals, apply online or give one of our trusted experts a call to help guide you through the process.

 

 

Average Property Tax rates for Mortgage Calculator

.6% per year – Alabama, Arizona, Arkansas, California, Colorado, DC, Delaware, Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Montana, New Mexico, South Carolina, Tennessee, Utah, Virginia, West Virginia, Wyoming 

1.15% per year – Alaska, Florida, Georgia, Indiana, Maryland, Massachusetts, Minnesota, Missouri, North Carolina, North Dakota, Oklahoma, Oregon, Washington

1.45% per year – Iowa, Kansas, Maine, Ohio, Pennsylvania, South Dakota

1.75% per year – Michigan, Nebraska, New York, Rhode Island, Texas, Vermont

2% per year – Connecticut, New Hampshire, Wisconsin

2.4% per year – Illinois & New Jersey (some Texas cities are here as well)

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Disclaimer

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.