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Using a Mortgage Calculator to Estimate Your Monthly Payment

Using a Mortgage Calculator to Estimate Your Monthly Payment


Using a Mortgage Calculator to Estimate Your Monthly Payment

If you are looking for a new home, you need to know how much money you will have to pay per month. This is incredibly important for figuring out your monthly budget. One of the tools that can help you do exactly that is called a mortgage calculator. A good mortgage calculator will help you determine the right home for your needs. When it comes to a good mortgage calculator, there are a few features to look for.

The Forgotten Homeownership Costs

The essential features that any mortgage calculator should be able to handle include:

  • The overall price of the home
  • The interest rate attached to any home loan
  • The down payment

As people put more money down, the monthly mortgage payment should drop because the loan is smaller. On the other hand, these are not the only costs that go along with monthly payments. Some of the other monthly payments that homeowners need to consider include:

  • The monthly home insurance payment
  • The property tax rate
  • The presence of any homeowner association (HOA) dues

While mortgage lenders often hold these items in escrow for the borrower, they still factor into the total cost of the home. Find a mortgage calculator that includes these hidden costs.

The Ability to Break Out a Monthly Payment

Another important feature that people should look for in a mortgage calculator is the ability to break out the monthly payment. As a homeowner, some of the payment is going to go toward the principal of the loan each month. Eventually, the principal should drop to zero.

It is still a good idea to see where the rest of the money is going. This includes what percentage of the payment is going toward HOA dues, home insurance, and property tax. This feature is important to know where the money is going. Find the right mix of house and loan rate using this feature.

Change the Monthly Debt Payments

Many mortgage calculators determine the monthly payment; however, other options for mortgage calculators will provide additional information as well. Instead of juggling interest rates and down payments, it is also important to work this process in reverse, starting with the debt-to-income ratio.

This is important because most lenders will look at this ratio when deciding if someone is worthy of a home loan. This mortgage calculator considers someone’s other debts such as credit cards, student loans, and car loans. Then, by wiping out these loans before applying for a mortgage, it shows people how much larger of a house they can afford. This is a great feature that people should consider.

Check the Payoff Progress

Finally, another important feature is the ability to watch the principal and interest of the loan payments change over time. This provides homeowners with the ability to watch as the interest on the mortgage drops and the percentage of the payment is going toward the principal increases. This can be great for homeowners to visualize where their money is going each month.

Contact Mortgage Investors Group Today

If you are looking for a professional to help you with the home loan process, contact Mortgage Investors Group today!

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020