This mortgage calculator with taxes estimates your monthly loan payment including fees, charges and taxes in such a way to get the total out of pocket on a regular basis. There is in depth information on how to deal with your costs below the form.
How does this mortgage calculator with taxes work?
This is a helpful personal finance application that allows simulating the total monthly effort you will have to ensure you can pay on your mortgage. As such this calculator considers the following details that should be provided:
- Home price meaning the value you are about to pay for the property you intent to buy.
- Down payment value which is the amount of cash you have available to contribute at the beginning of the transaction. Its level varies from one lender to another, and it is a way for lenders to ensure you have put some money aside for your home.
- Term and the fixed interest rate level which should be assumed.
- Payment frequency which most probably will be monthly, but can be changed with any value from the drop down list.
- Annual property tax rate which is automatically guessed/assumed to 1.2% but it is editable, so it can be changed with any other percentage.
- Annual home insurance value you expect.
- Annual PMI insurance rate which is by default guessed/assumed by taking account of the values you input within the previous fields, but it is editable with any value you may input there.
- Annual HOA dues which is the value you expect where the case.
- The same is with the other costs fields where you specify any related cost.
The payment plan displayed by this mortgage calculator with taxes consists in the following information:
■ Monthly payment value which is the principal plus interest paid.
■ Monthly property tax value.
■ Monthly home insurance amount.
■ Monthly PMI insurance cost.
■ Monthly HOA dues/fees value.
■ Other monthly fees & costs amount.
■ Monthly total out of pocket (the sum of all the above).
■ Home price specified.
■ Loan amount borrowed as the result obtained by subtracting the down payment form the purchase price.
■ Down payment specified.
■ Total paid for the mortgage.
■ Total interest paid.
■ Loan term expressed in months.
■ Annual interest rate assumed.
■ Desired payment frequency
■ Estimated payoff date.
Example of a calculation
In case of a property of $200,000, with a down payment of $40,000 if it is purchased through a loan taken over 30 years, fixed interest rate of 3.95%, with monthly payments, an annual property tax rate of 1.2%, a value of $1,100 for annual home insurance costs, a 0.35% in case of annual PMI, annual HOA dues of $1,000 and other annual costs of $2,000 this tool will display the following figures:
■ Monthly Payment: $759.26
■ Monthly property tax: $200.00
■ Monthly home insurance: $91.67
■ Monthly PMI insurance: $58.33
■ Monthly HOA dues/fees: $83.33
■ Other monthly fees & costs: $166.67
■ Monthly total out of pocket: $1,359.26
■ Home price: $200,000.00
■ Loan amount borrowed: $160,000.00
■ Down payment: $40,000.00
■ Total Paid: $273,333.45
■ Total Interest Paid: $113,333.45
■ Loan term: 360 months
■ Annual Interest rate: 3.95%
■ Payment frequency: Monthly
■ Payoff date: December, 2044
What to take account of when analyzing your affordability …
- Consider all the costs not only the monthly mortgage payment since a home means more than that cost, and your budget should include all of them.
- In case of a mortgage it is recommended to avoid overestimating your affordability when assessing it, otherwise you may get to default.
- Choose the right term to payout your loan as this aspect will determine the level of your monthly payment and so the total effort you have to make.
- Resize you expectations in such a way to buy the home you really afford to.
- Search for different offers and get the lowest interest rates on the market by taking a look on the way the lenders you approach have changed their quotes within the last 3 up to 5 years.
- Compare mortgage plans from at least 5 lenders to have a complete picture of what their eligibility criteria and policy are.