July 3, 2018

MORTGAGE CALCULATOR

Use the handy calculator below to better understand how your mortgage and monthly payments might look.

Home Value: The total sale price of a property agreed upon between buyer and seller.

Down Payment: The amount of money given to the seller by a buyer upon purchase. The remainder of the total home price will be covered by a mortgage. If a buyer makes a down payment of less than 20 percent, the lender typically requires them to purchase private mortgage insurance (PMI/MI).

Principal: The balance of the home loan or mortgage to be paid off. This is calculated as the home price less the down payment. For a $500,000 home bought with a 10 percent down payment of $50,000 the principal balance at the beginning of the mortgage will be $450,000.

Interest Rate: The amount that the lender charges a buyer for the home loan. Your exact interest rate will be determined by your lender after consideration of several factors including inflation, Federal Reserve rates, your credit score, and lending fees.

Amortization period: The duration of the mortgage, or the time you will have to pay off the home loan in full. If you’re unsure which term length is right for you, explore different home loan options before using the mortgage payment calculator.

Property Taxes: The annual tax levied by the government on your property. The nationwide average is about 1.2 percent of the home’s assessed value but property taxes can vary widely by location.

Homeowners Insurance (HI): The typical insurance policy that covers damages to your property as well as your possessions kept in the insured home. The average annual cost of homeowners insurance is about $1000, but costs can greatly vary by location.