Free Mortgage Calculator with PMI and Taxes
Down Payments: FHA 3.5% ♦ FHA 203K 3.5% ♦ OHFA 2.5%, USDA 0% ♦ VA 0% ♦ Conventional 5-20%
This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
We can save you thousands on Southern Ohio real estate and homes for sale in Cincinnati, OH. Expert, experienced Realtors, we know how to take advantage of down payment assistance, home buyer incentives, low and no down payment homes and challenging credit. So do our preferred lenders and we collaborate to save you time and money. Our business runs on satisfied clients, check out our testimonials.
Using this Mortgage Calculator with PMI and Taxes
Please review the different types of home loans further down before using the mortgage calculator with PMI and taxes and how they are calculated. The default property taxes on this mortgage calculator with PMI are set for an average of the state of Ohio. Property taxes can be a small monthly expense or quite large depending on the home and the community it is located in. Note the different suggested down payments for different home loan types.
Buying a home is more affordable than many think and often less expensive than renting, simply add your home owner's insurance premium and HOA fees if applicable.
Understanding PMI, or Private Mortgage Insurance: This is a premium that is regulated by Federal law, protects the lender in the even the borrower defaults on the home loan and charged by mortgage lenders for home loans with less than a 20% down payment. PMI stops when the outstanding principal is less than or equal to 80% of the home value.
- PMI is calculated only if down payment is less than 20% of the property value (i.e., loan-to-value ratio is higher than 80%) and stops as soon as the outstanding principal amount (balance) is less than or equal to 80% of the home value or in other words, when the borrower has 20% equity in the home.
- PMI premium rates are estimated using the following 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%. The actual PMI is based on your LTV, credit score and debt-to-income ratio.
- Some mortgage lenders can issue qualified loans with no PMI with less than 20% down payment. If you're buying in southwest Ohio and the Greater Cincinnati area, you can request this type of loan and also down payment assistance through us, we simply forward your request to preferred licensed mortgage lenders we trust.
This is why, before you start using a mortgage calculator with PMI and taxes, start figuring your home owner's insurance and other items, you need to understand your debt-to-income ratio and how it will affect your ability to get pre-approved for a Qualified Home Loan. Qualified home loans are going to offer the best rates and terms, though this mortgage calculator will still give you a strong, realistic idea of what your monthly payment would be.
- Currently, the debt-to-income ratio for FHA, or Federal Housing Authority loans is 43%. This percentage of monthly revolving debt, such as credit cards or auto loan payments is divided by the applicant's monthly income. The lower your debt-to-income ratio, the better the loan you can get provided you have an acceptable credit and FICO score.
- Home buyers are wise to include every monthly expense and then pad that with an extra 10%, and a much clearer indicator of your financial capacity to faithfully make the monthly mortgage payments. Most bankruptcies are filed over a mere $300 monthly cash flow deficit.
Mortgage Calculator, Down Payments and Credit Scores
Before you plug in a down payment percentage in the mortgage calculator, consider what type of home loan you'll actually be pursuing. You should also check your credit as 90% of credit scores contain errors that can disqualify you for a home loan.
Using the tool as an FHA Mortgage Calculator with PMI
FHA loans are only 3.5% down and most FHA mortgage lenders can work with a credit score of 580 but prefer a score of 620-640 and up. Bear in mind, the lower the credit score the better the debt-to-income ratio has to look.
If you're buying Cincinnati area real estate or anywhere in Ohio you may be able to use OHFA down payment assistance. Check with your state for similar programs if you're not in Ohio. OHFA, or Ohio Housing Finance Authority offers first time buyers down payment assistance in the form of a grant. The grant amount is 5% of the purchase price of the home, wonderful news right? Since the grant is more than the required FHA down payment, excess funds may be put toward improving the property or home repairs
- In essence, an FHA mortgage with 3.5% down with OHFA down payment assistance would require no down payment, so enter "0" for the down payment on the mortgage calculator.
Check with your state; there are many forms of down payment assistance at state, city and county levels, you just have to check for your area. Though you can use the mortgage calculator to get an idea of what your monthly mortgage payments might be no matter where you reside, if you're buying in southern Ohio or the Cincinnati are, we are experts at helping home buyers obtain down payment assistance and utilizing money saving programs.
- One such program is Ohio Heroes which cuts your mortgage rate by a quarter percent. It may not sound like much but test a home loan on the mortgage calculator with PMI and taxes at 5% and then at 4.75% and you'll see substantial dollars are saved over the life of the loan. Just compare the monthly payments in the amortization schedule.
Using the tool as a VA Mortgage Calculator with PMI and Taxes
VA home loans are no money down, so enter "0" for the down payment on the mortgage calculator. Though there is no monthly PMI premium, private mortgage insurance is still paid for but in the form of a VA funding fee, which is estimated at 2.15 percent and part of your closing costs, paid in one sum.
- For example, a home with a purchase price of $200,000 would have an estimated VA funding fee of $4,300. The amount of the VA funding fee is also impacted by the borrower's credit score and debt-to-income ratio.
Using the tool as a USDA Mortgage Calculator with PMI and Taxes
USDA home loans are a no money down loan product, so enter "0" for the down payment. USDA mortgages do not have PMI, but similar to VA home loans, there is a one-time upfront premium to protect lenders from borrower default, but much less than what monthly PMI premiums cost at 2% of the purchase price and part of your closing costs.