How-To Estimate Your Monthly Mortgage Payment
Sep 26, 2016
Buying your first home is one of the most exciting – and stressful – life events that someone can go through. After you finally find the perfect home at a price point you have been pre-approved for, it is time to get a mortgage locked down. Here is how to estimate what your monthly mortgage payment will be.
Estimate Your Monthly Mortgage
Your mortgage payment each month includes a bit more than just your actual payment on the loan. There are a few factors that also need to be factored in so that you are prepared for the actual amount you will need each month.
How long is the term of your loan? This is usually 30 years or 15 years.
What is the price tag on the home you would like to buy?
Mortgage Interest Rate
What mortgage rate did you lock in? This is the percentage of interest that you pay to the lender for borrowing money.
Your down payment can have a significant influence on your monthly payments. The larger the down payment, the lower your monthly payments will be.
This amount is also factored into your monthly mortgage payment, if you have an escrow account.
Annual Property Taxes
An estimate based on last year’s property taxes will help you plan for what to expect. You will pay monthly for your yearly tax bills, if you have an escrow account.
All of this information will help you determine your monthly mortgage payment. Our mortgage payment calculator can do the work for you, so that you know exactly what to expect!
If you are ready to buy a home, contact the professionals at Home Point Financial today. We aim to make the home financing process as smooth and stress free as possible by providing our clients will all of the resources they need.