What a mortgage calculator is for?
A mortgage calculator allows you to calculate your monthly home payment with principal and interest, taxes, insurance, HOA, and mortgage insurance.
Brickellmania’s mortgage calculator goes beyond the typical calculators. With our mortgage calculator, you can get three numbers:
- Your monthly mortgage payment: Entering the home price, the down payment, HOA, etc you can estimate how much your total monthly payment will be.
- How much you can afford to buy: Based on your annual income, you can play with the numbers until you get comfortable with the results.
- Desired monthly payment: the mortgage calculator will tell you how much is the maximum price of the home that you can buy to stay at the desired monthly amount.
How can a mortgage calculator help me?
Your home mortgage payment will be the most important in your life for the next 15 or 30 years. This tool can help you calculate your mortgage payment while buying a home or considering a refinance. It can help you decide:
- A 30-year fixed rate mortgage:
Will lower your monthly payment, but pay more interest over the life of the loan, or a 15-year fixed rate mortgage? That may lower the total interest you will pay, but your monthly payment will be higher.
- An adjustable rate mortgage (ARM)
Starts with a “teaser” interest rate and then the loan rate changes, higher or lower, over time. This mortgage can be a good option, if you plan to be in a house for only a few years.
- Are you buying a very expensive house for your income?
The mortgage payment calculator can give you a reality check on how much you can expect to pay each month.
- Are you putting in enough down payment?
The mortgage payment calculator can help you decide what is the best down payment for you.
What costs are included in a monthly mortgage payment?
Principal: This is the amount you are borrowing. Each mortgage payment reduces the principal owed.
Interest: What the lender charges you to lend you the money.
Property taxes: The annual tax that a government authority determines on your home and land.
Homeowners Insurance: The policy covers financial damage and loss from fire, storms, theft,
a tree falling on your home, and other losses.
Mortgage insurance (PMI): Protects the lender’s interests in the event that a borrower does not pay a mortgage, this insurance is needed when the down payment is less than 20% of the purchase price of the home. Once your home equity rises to 20%, your mortgage insurance is canceled, unless you have an FHA loan.
Can I reduce my monthly payment?
Yes, you can reduce your monthly payments if:
- You extend the term of the loan: With a longer term, your payment will be less but you will pay more interest over the years.
- Buy a less expensive house.: Getting a lower loan means a lower monthly mortgage payment.
- You avoid paying PMI: With a down payment of 20% or more, you won’t have to pay for private mortgage insurance.
- Lower interest rate.: Making a larger down payment can not only allow you to avoid PMI, but also lower your interest rate. That means a lower monthly mortgage payment.
- Conventional Loans: Most mortgage lenders expect a 20% down payment for a conventional loan without private mortgage insurance (PMI).
- VA loans: Do not require down payments
- FHA loans: Often allow as low as 3.5% a down payment (but you have to pay mortgage insurance).
Some lenders offer conventional programs with down payments as low as 3% – 5%, but may require a higher credit score than an FHA loan.