How much is the payment?

Using a simple mortgage calculator is a great way to estimate your payment on various homes you see. Simply input the purchase price, estimated interest rate, number of years, and amount of down payment. The calculator will show you the principal and interest payment.

What else do I need to know about my payment?

Taxes and insurance are included in most payments, and sometimes mortgage insurance. When you add those to principal and interest, it becomes your PITI. That is principal, interest, taxes and insurance. You will shop for your own insurance.  The taxes will be based on the current seller’s taxes at the time of the mortgage.

What about mortgage insurance?

When less than 20% down payment is made, mortgage insurance is required. Although the buyer pays, it protects the lender against default due to the lower down payment.

You may have options to lower or eliminate the mortgage insurance.  Your mortgage professional can advise you.

Bottom Line

When you find the property that is right for you, be sure to consult your mortgage banker for an accurate estimate of your mortgage payment.



Figures accurate at the time of this publishing.