First time buyer and mortgage calc question..
Question: I’m interested in buying my first home. I’ve used these online mortgage calculators but they don’t seem to take into account other items that might be included in a loan. For example, the tax.
I’d like to know what the bottom line will be with regard to my monthly mortgage payment, based on the purchase price of a home.
So for example, if the price is $170,000, then what would I expect to pay based on a 0.00 downpayment, good credit, a 6.5% rate, a $1500 tax bill rolled into the payment and anything that I may be missing here?
I realize this may be a vague question, but since I’m a first timer, I’m not sure.
Perhaps if someone can point me to a good mortgage calc on the web that takes these variables into account, that would be helpful.
Thanks in advance for your help.
Answer: Nothing else (like taxes) is included in the “loan”. The mortgage calculators usually only calculate your monthly principal & interest payment since those are the only real part of the mortgage itself.
Taxes and insurance are sometimes (often) included in your payment because the mortgage company collects them and pays them so they are sure they get paid.
Just take the tax and insurance amount and divide by 12 and add it to the principal & interest payment.
If your principal & interest payment is $1074.52 per month and your property taxes are $1500/yr and your homeowner’s insurance is (say) $500/yr, then your payment is:
1074.52 + (1500/12) + (500/12) = $1241.19/mo
That payment will increase each year if your property taxes and/or insurance increases (they always seem to…).
I’ve seen mortgage calculators online that allow you to enter these things to calculate a payment.
Are you certain that the taxes are $1500? It could be right, but around here (PA), property taxes on a $170K house would be $3000 – $3500 (including local, county, and school district property taxes). But generally, the taxes and insurance are the only other things included in your monthly payment by the mortgage company, unless you have a homeowner’s association or condo fee.
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