Mortgage Calculator usually helps you in dertemining the possible monthly amortization for your home loan. This is however not exact and is not the definitive value that you will pay since mortgage covers lots of things. Our mortgage calculator will only help you in your mortgage planning. We are also including some basic mortgage details for your reference.
Monthly payments shown constitute an estimate and are provided for informational purposes. This does not constitute an offer for a mortgage loan. Payments shown do not include taxes and insurance.
How much do I need to put down?
A down payment is the money you pay at closing to decrease the total size of the loan. Having a down payment of 20% or more helps you get a lower interest rate and avoid paying private mortgage insurance. But you don’t have to put 20% down to buy a house. There are a variety of low down payment options available for home buyers:
- Fixed-rate conventional loans offer down payments that are typically a minimum of 5%
- Well-qualified buyers can get a conventional loan by putting as little as 1% down while gaining 3% equity*
- FHA loans have a minimum down payment of 1%, whether you’re getting a fixed or adjustable rate.
Keep in mind that your minimum down payment may be higher if you’re buying a second home or an investment property.
*For example, the payment on a $200,000, 30-year fixed-rate loan at 4.375% (5.179% APR) with an LTV of 97% is $998.58. Taxes and insurance are not included. Rates shown are valid on publication date of 3/02/2016. Restrictions may apply.
What does my monthly payment include?
Your monthly mortgage payment is made up of principal and interest, and that’s what our calculator shows. The principal portion goes toward paying off the total amount you’ve borrowed. The interest is a percentage of the amount borrowed that you pay to your lender.
For many homeowners, the monthly mortgage payment includes more than just principal and interest. It can also include property taxes and homeowners insurance premiums if you have an escrow account with your loan. An escrow account allows you to pay for your taxes and insurance premiums as part of your monthly mortgage payment.
Don’t forget – if the neighborhood where you’re buying a home includes a homeowners association (HOA), you may want to add your HOA fees into your monthly payment budget as well. However, your HOA fees probably won’t be paid for as part of your mortgage payment.
Should I choose a long term or short term?
Your loan term represents the number of years over which you pay back your loan. A shorter-term loan will generally have a lower interest rate than a longer-term loan, meaning you’ll pay less in interest over the life of your loan. On the other hand, longer-term loans offer lower monthly payments.
What factors determine my interest rate?
Did you know that many factors affect your mortgage rate? Here are just a few examples:
- Type of loan
- Credit history
- Loan amount
- Down payment amount
In general, your interest rate is based on the level of risk that lenders predict for your loan – that’s why so many factors contribute to your individual rate. On top of that, mortgage rates change daily based on market trends.
We hope that our Mortgage Calculator and Basic Mortgage Details will help you in your decision about your mortgage. Home Mortgage Alliance Corporation (HMAC), NMLS# 1165808, are eager to help you become a home owner and can even refer you to some of our partners.