Mortgage Calculator with Taxes and Insurance
Use this mortgage calculator with taxes and insurance to calculate home loans. Estimate monthly payments. Calculations include principal, interest, property taxes and PMI. Enter down payment, interest rate, loan term and click. Calculations amortize sum-total of mortgage payments.
Payment schedules show annual interest, principal payments and accrued equity.
Mortgage Calculator with PMI and Taxes
Mortgage loan down payments: FHA 3.5%, OHFA 2.5%, VA 0%, USDA 0%, Conv. 10-25%.
PMI, or Private Mortgage Insurance. PMI isn't calculated on home loans with down payments of 20% or higher. A Federal requirement, PMI protects lenders from borrower defaults. PMI stops when loan-to-value ratio becomes equal to or under 80% of the home value.
PMI estimates use loan-to-value rates: 95.01-100% = LTV 1.03% ♦ 90.01-95% = LTV 0.875% ♦ 85.01-90% LTV = 0.625% ♦ 80.01-85% LTV = 0.375%. Premiums depend on LTV, credit and debt-to-income ratio.
To calculate Loan to Value Ratio (LTV), divide amounts borrowed by appraised value. Home appraisals less than offer prices cause problems. Good real estate agents can contest low appraisal.
Calculating Mortgages - Important Mortgage Terms
Understand mortgage calculations. Mortgage calculators with taxes and insurance don't cover all costs.
Mortgage Points, a form of pre-prepaid interest, increase yields above standard interest rates. Lenders make more money with point charges. Bank mortgage lenders tend to charge mortgage points. I suggest using mortgage brokers. One-point equals 1 percent of loan amounts. My mortgage calculator with PMI and taxes doesn't calculate points. I work with mortgage brokers.
A credit tip for lender comparison shopping. Have credit pulls done within two weeks. Mortgage borrowers incur minor negative dings on credit pulls. Pulling credit scores within two-week periods saves negative credit impact.
Pre-Approval vs Pre-Qualified. Mortgage television ads promote getting pre-qualified. Buyers need pre-approval. Pre-qualified isn’t pre-approval. Pre-approval means mortgage lenders previewed finances. Credit, FICO scores, debt-to-income ratio get determined. Lenders verify finances prior to funding mortgages. Pre-qualified is a mere first-look at ability to pay a mortgage. Talk with a lender, get pre-approved.
At borrowers’ pre-approval state, lenders commit to lending. Mortgage underwriters carefully review and analyze for loan determinations. Mortgage Being pre-approved is no guarantee an actual loan issue. Homes must pass inspections and appraisal. Borrowers must protect finances until closing.
- The difference between mortgage amount and house value is down payment.
- PMI, home insurance and property taxes default to U.S. national averages.
- Common loan terms are 15 - 30 years.
- Add an amount equal to 20% of principal payment each month. Adding this amount can cut a loan term in half.
- Bi-weekly payments save interest over mortgage loan terms.
- Property taxes placed in escrow reflect in scheduled payments.
Costs and savings not included in mortgage calculations:
- Home ownership has recurring costs; maintenance, utilities, home warranty etc.
- Tax deductions on mortgage payments. Several tax deductions are possible. Consult a CPA.
Factor everything in making renting vs buying calculations. Buying proves affordable compared to renting in many cases. Do homework, prepare for mortgage application. Discover home ownership’s true cost. This mortgage calculator will help.
- 13 expenses home buyers should prepare for
- Debt-to-income ratio requirements
- How to get offers accepted
- Request a SW Ohio home loan
- Request Ohio down payment assistance
Mortgage lending rates change; consider financing types. Some buyers consider an ARM, or adjustable rate mortgage. Annual interest paid reflects prime rate increases; great if high interest rates are dropping. Consult lenders, make fact-based decisions. ARM interest rate movements surprise unprepared buyers.
Fixed rate mortgage loan interest rates remain constant. Rate don’t change over loan terms. ARM loans have fixed rate periods. Monthly payments change at designated periods. An example, a 5/1 ARM provide 5-year fixed rates. Mortgage interest rates rise or fall on period expiration. A 3/1 ARM mortgage provide 3-year fixed rates
Index Rate affects ARM mortgage monthly payments. Index Rate changes impact interest rates. This occurs as fixed interest rate periods expire. Box home loans are ARMs tied to the LIBOR index.
Interest Rate Index variables impact interest as fixed periods expire. Like a credit card offering fixed interest rates to start. Fixed periods expire, interest rates increase.
Lenders use mortgage margins, fixed rate variables, to calculate index value. This determines true indexed rate of ARM home loans. Fixed margins are constant throughout mortgage loan terms. Buyers must understand true APR or Annual Percentage Rate. Home buyers pay higher than expected costs. Be informed if making a mortgage application.
Initial Note Rate is initial interest on mortgages, imposed at start of mortgage terms.
Learn important terms regarding interest rates; Interest Rate Caps and Interest Rate Ceiling. Interest rated are charges for borrowing money expressed as percentages.
Interest Rate Caps are limits on interest rates increases or decreases. Interest rate caps apply each period of adjustable rate mortgages. Maximum interest rates increase or decrease every 12-month period is 2%. Adjustments refer to last calculated rate periods. This caps how variable mortgage interests are annually.
Interest Rate Ceiling is an important term to know; a maximum amount interest rates reach during loan term. Maximum rate ceiling for a 5/1 ARM is 5% over initial note rates. On a 3/1 ARM it is 6% over initial mortgage note rate.
Some mortgage borrowers calculate home loans with balloon payments. Balloon payments apply more to commercial real estate compared to home loans. I advise home buyers against balloon payments. Lower cost upfront, balloon payment mortgages don’t amortize %100 over loan terms. Balloon payments leave a balance at loan term's maturity; a large lump-sum payment.
Calculate all recurring costs of home loans. Consider recurring, one-time or hidden fees lenders charge. Talk to lenders on true cost of mortgages.
It’s wise to calculate home loans, estimate monthly payments. Buyers assume mortgage payments are sum-totals owed monthly. Factor expenses of home ownership. Mortgage payments are one expense.
Buyers get sticker-shock with utilities too. Utilities can be higher, owning homes vs renting. Be informed on utility costs for similar houses. Add estimated expenses to monthly payments.
Ask your Realtor for cost estimates on utilities for homes. For loan month totals, utilities need inclusion. Be informed on expenses not included in mortgage payments.
For better calculations of mortgage costs, factor in possible changes; paying off additional principal, paying off a mortgage entirely. Calculate charges if paying extra on mortgages. Some mortgage lenders penalize borrowers for paying loans off early or quickly. Some lenders charge fees and penalties.
Make sure you know all the facts. The calculator can't account for lender fees for changes in payments. Stay informed of changes affecting your monthly payment. Property taxes, insurance and other things can change over the loan term.
Make extra payments and PMI can drop off. PMI stops once principal owed becomes equal to 80% of the home value.