How does the mortgage calculator work?
Usually, the amount of money of you borrow to buy a app德扑圈官方网址home is nearly equal to the purchase price of the app德扑圈官方网址home minus your down payment. The other factors that will affect your mortgage payment include the interest rate and the length (term) of your loan.
From here you can get an estimated monthly loan payment, but that number may be deceptively low. That’s because many app德扑圈官方网址home buyers must also include insurance and property taxes in their monthly mortgage payment. (The lender collects these funds each month and holds them in escrow until their actual due date).
Private mortgage insurance
A “conventional” mortgage is a loan for no more than 80 percent of the property value. Typically, this requires a 20 percent down payment. If you only put down 10 percent, 5 percent or 3.5 percent (the minimum required for an FHA loan), your lender may require that you pay private mortgage insurance (PMI) until your loan-to-value ratio (LTV) drops below 80 percent.
Our mortgage calculator automatically estimates PMI if you enter a down payment that is less than 20 percent of the app德扑圈官方网址home value.
Today’s mortgage rates:
Our calculation does not account for app德扑圈官方网址homeowners insurance, which may or may not be rolled into your escrow account and monthly mortgage payment. Typically, however, your annual app德扑圈官方网址homeowner’s insurance premium is a modest amount that will only add $50 – $100 to your monthly payment.
One great way of making sure you’re paying the lowest app德扑圈官方网址homeowner’s insurance rates is by utilizing the search tool at Policygenius, an insurance aggregator. They’ll show you the best rates all in one place after you fill out a simple application.