You know what you are currently spending for housing (whether rent or a house payment). As you plan for your new home, a Mortgage Calculator can give you an idea of the new amount you’ll need to plug into your monthly budget. Continue Reading
About the Mortgage Loan Repayment Calculator
Many mortgage calculators can give you a principle and interest calculation. We do the same thing, but with a few differences that allow you to plan your home purchase more fully.
- The amount of your down payment impacts the principle payment (and can also impact the interest rate you qualify for). Looking at different down payment amounts will help you answer the “when” question—do you have enough now or should you wait?
- The loan program impacts both your interest rate and how much time you have to pay off the loan. How long you are planning on staying in the home is a factor in selecting the right loan program.
- In addition to down payment and loan program, interest rates vary with credit score and other factors. We’ve selected the most typical for the current moment.
- We also give you the option of adding in an additional monthly payment amount into the mortgage calculator so you can see the effect this will have on your timeline to repay the loan and the amount of interest that you are paying over the life of your loan.
Of course, a monthly home payment includes more than principle and interest. Whether you escrow or manage your own savings for taxes and insurance, you need to take these expenses into account. Using the calculator, you can:
- Estimate your property taxes. Across the state, the average is 1.8%. Because of the lack of income tax, Texas property taxes are among the highest in the nation, so you’ll want to be sure to take this into account. And if you want to check out tax rates in a specific county, look at http://www.tax-rates.org/texas/property-tax#Counties. Differences can be dramatic: for a $250,000 home, taxes in Travis County would be $4,950 while next door in Williamson County they are $5,550.
- Plug in a number for home insurance. A quick call to your current insurance agent can give you a ballpark number.
- Add in HOA fees. Sometimes these are minor, but in some developments, they may be upwards of $100/month. Be sure to ask about the fees when you are looking for a home.
Everything on our Mortgage calculator is adjustable. Half the fun in buying a home is exploring different possibilities. Do remember that the calculator provides estimates. When you’re ready for a custom solution, one of our Mortgage Bankers can help you dig into the numbers.