Mortgage Calculator with PMI and Taxes

Purchase & Financing Information

Show me the calculations and amortization

Calculate your home loan paymentsTry our free mortgage calculator with PMI and Taxes. Use this tool to estimate your monthly payment. The calculations include principal, interest, property taxes and PMI. Enter your down payment, interest rate and loan term. This will calculate the sum total of all your payments. The payment schedule shows amounts paid yearly for interest and principal. You'll see the amount of equity you build each year.

Down Payments and PMI

What amount to enter for a down payment: FHA 3.5%, OHFA 2.5%, VA and USDA 0%, Conventional 10-25%.

PMI, or Private Mortgage Insurance. If your down payment is 20% or higher on your loan, PMI isn't calculated. A Federal requirement, PMI protects the lender if a borrower defaults. It applies to home loans with under a 20% deposit. PMI stops if the principal becomes equal to or under 80% of the home value. This is the loan to value ratio.

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%. The premium depends on your LTV, credit and debt-to-income ratio.

We'd like to share some details to help you understand mortgage calculations:

  • The difference between mortgage amount and house value is your down payment.
  • PMI, home insurance and property taxes default to U.S. national averages. If you know your location's property tax, or home insurance cost, enter it.
  • The most common loan terms are 15 and 30 years.
  • Adding an extra 20% principal payment each month can cut a loan term in half.
  • Bi-weekly payments save more over mortgage loan terms.
  • Property taxes placed in escrow factor and reflect in scheduled payments.

Costs and savings not included in the mortgage calculations:

  • Recurring costs associated with home ownership (maintenance, utilities, home warranty etc.)
  • Tax deductions on your mortgage payments or for energy efficiency and other tax credits.

Factor all you can in making renting vs buying calculations. Buying proves affordable compared to renting in many cases. Do your homework and prepare for a mortgage application. Discover the true cost of home ownership. This mortgage calculator will help you.

Mortgage lending rates change. Be careful, consider the type of financing you want. Some buyers consider an ARM, or adjustable rate mortgage. As the prime rate increases, your annual interest will too. This is great if interest rates are high but dropping. Consult your lender, make decisions based on sound fact. A home mortgage surprises buyers with an ARM's interest rate movements.

Some buyers calculate home loans with balloon payments. Balloon payments apply to commercial real estate compared to home loans. We advise against balloon payments for home buyers. This is a lower cost upfront, the mortgage doesn't amortize %100 over the loan term. This leaves you a balance at the loan term's maturity. It's called a balloon payment, it's a large lump-sum payment in the end.

Calculate all the recurring costs related to a home loan. We ask you to consider too, any hidden fees and charges lenders make. Some are one-time fees, others are regular recurring charges. We advise you to ask lenders you talk to for the true cost of a home loan. Make your calculations based on all expenses, one-time or recurring.

For better calculations of mortgage costs, factor in possible changes. You might pay off additional principal. You might pay your mortgage off in entirety. You choose to make a payment, paying extra to save accruing interest and get penalized. Some lenders charge fees and penalties for these. Make sure you know all the facts. The calculator can't account for lender fees for changes in payments. Changes in property taxes, insurance policies and other things can change over the loan term.

Remember, making extra payments, insurance for lenders, or PMI, can drop off. This happens when principal owed becomes equal to or under 80% of the home value.

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