A Great Planning Tool
Use this handy tool to determine your
monthly mortgage payment.
This calculates Principal and Interest only.
Use this handy tool to determine your
monthly mortgage payment.
This calculates Principal and Interest only.
LOAN CALCULATOR
| Northstar Group Realty CRS, GRI co-huds.com 303-257-8000 |
| Northstar Group Realty www.co-huds.com Direct: 303-257-8000 Fax: 720-596-5555 Email: mike1realtor@msn.com |
by low-sounding payments. Make sure you
know exactly what you will be paying for
each month, or else you could find yourself
drowning under payments you can't afford.
It is important to know that there are several additional elements of a
monthly payment:
Property Taxes
You can look up the desired property's taxes on the County Assessor website. Taxes
are always 1 year in arrears, meaning you are paying last year's taxes this year, this
year's taxes next year, and so on. Take the tax, divide it by 12, and add that
amount to your monthly payment. You do however have the option of paying the
taxes "POC," meaning Paid Outside Closing, all at once, thereby reducing your
monthly payment.
Insurance
This is called "Homeowner's Insurance," or "Hazard Insurance." Ask your Insurance
agent for a quote, as it will vary with coverage, inclusions, deductables, etc. An
average home's policy should cost between $800-1200/year. Generally figure
$100/mo for insurance added to your payment, but it may vary up or down.
HOA Dues.
If you are buying a condo or townhome, and in many cases a single-family home in a
subdivision with an HOA, make sure you add the monthly Homeowner's Association
Dues to your payment. These can range from $15-50/mo for homes that only include
administrative fees or trash removal, all the way up to hundreds of dollars a month
for condos/townhomes that includes pool, clubhouse, grounds maintenance, trash &
snow removal, water, and possibly heat and cable TV.
Mortgage Insurance.
Mortgage Insurance is not always required. It is sometimes required if you have less
than 20% down or if your credit/borrowing scenario is marginal or risky. Some
lenders will even pay it for you and just increase your interest rate a little bit. If you
obtain an FHA loan it is ALWAYS required.
Here's how you calculate your Mortgage Insurance Premium:
Multiply your loan amount times .005, then divide that by 12 to get your monthly
premium. For example on a $200,000 loan, times .005 = $1,000 divided by 12 =
$83.33/month.
There is also an up-front Mortgage Insurance Fee, calculated by multiplying the loan
amount by 1.5%. So Multiply $200,000 times .015 = $3,000.
So in this case the Borrower would have to pay $3,000 up front in closing costs (or
add it to the loan) plus $83.33 per month added to the loan payment for Mortgage
Insurance.
Make sure you are aware of all the elements that make up
a payment, so you don't get in over your head later and
get drowned by a payment that you can't afford!
know exactly what you will be paying for
each month, or else you could find yourself
drowning under payments you can't afford.
It is important to know that there are several additional elements of a
monthly payment:
Property Taxes
You can look up the desired property's taxes on the County Assessor website. Taxes
are always 1 year in arrears, meaning you are paying last year's taxes this year, this
year's taxes next year, and so on. Take the tax, divide it by 12, and add that
amount to your monthly payment. You do however have the option of paying the
taxes "POC," meaning Paid Outside Closing, all at once, thereby reducing your
monthly payment.
Insurance
This is called "Homeowner's Insurance," or "Hazard Insurance." Ask your Insurance
agent for a quote, as it will vary with coverage, inclusions, deductables, etc. An
average home's policy should cost between $800-1200/year. Generally figure
$100/mo for insurance added to your payment, but it may vary up or down.
HOA Dues.
If you are buying a condo or townhome, and in many cases a single-family home in a
subdivision with an HOA, make sure you add the monthly Homeowner's Association
Dues to your payment. These can range from $15-50/mo for homes that only include
administrative fees or trash removal, all the way up to hundreds of dollars a month
for condos/townhomes that includes pool, clubhouse, grounds maintenance, trash &
snow removal, water, and possibly heat and cable TV.
Mortgage Insurance.
Mortgage Insurance is not always required. It is sometimes required if you have less
than 20% down or if your credit/borrowing scenario is marginal or risky. Some
lenders will even pay it for you and just increase your interest rate a little bit. If you
obtain an FHA loan it is ALWAYS required.
Here's how you calculate your Mortgage Insurance Premium:
Multiply your loan amount times .005, then divide that by 12 to get your monthly
premium. For example on a $200,000 loan, times .005 = $1,000 divided by 12 =
$83.33/month.
There is also an up-front Mortgage Insurance Fee, calculated by multiplying the loan
amount by 1.5%. So Multiply $200,000 times .015 = $3,000.
So in this case the Borrower would have to pay $3,000 up front in closing costs (or
add it to the loan) plus $83.33 per month added to the loan payment for Mortgage
Insurance.
Make sure you are aware of all the elements that make up
a payment, so you don't get in over your head later and
get drowned by a payment that you can't afford!
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