How Much Will My Mortgage Loan Payment Be?
There are several components of a mortgage payment which includes principal and interest, property taxes, and home insurance. Also, depending upon the type of loan and down payment then you may have PMI (private mortgage insurance) or an Annual Fee if you applying for USDA zero down loan. Furthermore, you may be eligible for a NO PMI program. If you are purchasing a condo or townhome then you may have to pay an association fee which can usually range from $100 to $400+ per month. The interest rate will determine your principal and interest payment and mortgage rates change daily. The lower the loan amount the less the impact the interest rate may have on your principal and interest payment and the higher the loan amount the greater the rate will impact your payment. Usually, property taxes, PMI, and association dues if applicable can have a significant impact on your mortgage payment. For example, you can buy a low priced condo but if the taxes and association dues are high then your payment may be less affordable.
Also, I would like to mention one common mistake that first time home buyers make when calculating mortgage payment when using online mortgage calculators. They don’t factor in PMI because some calculators don’t include these factors or they are incorrect and they don’t add association dues if they are purchasing a condo or townhome. The difference in payment could be significant and the mortgage ratio which lenders use to qualify you for the loan program may be much higher than you figure out which may decrease or eliminate your chances of getting approved for the home or condo you want.
Check out the FirstHomeBuyers.net loan programs calculator or mobile mortgage calculator app to calculate your total payment and get a custom mortgage rate quote to make sure you are using the right interest rate. Please contact us today at 847-516-5743 or fill out the Fast Track Preapproval Form to find out how much home you can afford and what is the maximum mortgage payment to qualify for the program which fits your budget.