This is the initial amount that you borrowed to purchase your home and are working to pay down over time.
Interest accrues over the life of the loan and is typically a fixed percentage of the total borrowed amount. There are also variable interest rates, but since these fluctuate based on the market, it’s hard to give an estimated payment on a variable-rate mortgage.
Most mortgages will also include your local property taxes in your monthly payment. You will have to pay a certain percentage of your property’s assessed value once per year, but dividing the payments out over twelve months makes more sense for most homeowners.
Almost every lender will require you to insure your home because it protects their investment as well as yours. In addition to homeowners insurance, you may be required to purchase Private Mortgage Insurance, , or PMI, if your down payment is less than 20% of the total loan amount.
If you run the mortgage calculator and the payment is more than you can afford, there are a couple of adjustments that you can make to lower your monthly payment.
How much house you can afford is not always the same as the loan amount you can be approved for. Our Home Affordability Calculator will help you determine the loan amount that you are eligible for based on debt-to-income ratio, current income, and credit score.
But what you can actually afford may be less than that. Forbes recommends, for example, that you don’t spend more than 28% of your income on your mortgage. You’ll also want to consider your other financial goals and obligations. You’ll also want to keep some money in savings so you can still make your payments for a few months if you experience financial difficulties.
Use our free calculator to get an idea of your monthly payment if you refinanced. You can even estimate savings on your interest and net savings after closing costs.
Disclaimer: Results received from this calculator are designed for comparative purposes only. Every home loan is different, and many factors influence the final numbers for a home loan. Please contact a mortgage professional like The Reichert Mortgage Team for exact payment figures. We are not responsible for any typographical errors, omissions or mistakes. Not every applicant qualifies nor is every program available for each unique borrower.
The Reichert Mortgage Team is proud to serve as Colorado Springs’ local mortgage broker. We are committed to providing high-quality education and resources to every homebuyer that we work with. As a veteran-owned company, we are experienced with VA loans and other government-based loans.
Our team wants to help you finance the home of your dreams and join our Colorado Springs community. We have access to some of the best loan programs nationwide and will help you choose the right financing option for your situation. Even if you’re not sure if you can afford a home yet, we’d love to meet with you. We can help you plan for a future home purchase or educate you on home-buyer assistance programs that may be able to help. Contact our experts today!
The Reichert Mortgage Team is proud to be your local, veteran owned mortgage broker in Colorado Springs specializing in VA Loans.
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