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# Mortgage Calculator

## Helpful information to use our mortgage calculator below

Enter numbers into the calculator. The numbers listed are just placeholders and should be overwritten with your numbers.

Home price: Total amount of the house.

Down Payment: The total amount you have saved to put down on the house. Keep in mind that if your down payment isn’t 20% of the home price you may have to pay PMI insurance as well until 22% equity is reached on your home.

Interest Rate: Interest rates are based on current market conditions, your credit score, down payment, and the type of mortgage you choose. Currently they are around 6.61% for a conventional 30-year mortgage. Use this as a guide for determining monthly payments, however, this may change once you apply for the loan.

Mortgage Terms: The most common mortgage term in the U.S. is 30 years. A 30-year mortgage gives the borrower 30 years to pay back their loan. But this can go as low as 10 years. If you are not sure, enter number 30.

Start Date: Approximate month and year the loan will begin. (2-3 months from the current month is a good guide to enter for now.

PMI: Unless you are able to put 20% down on a home your lender may force you to secure private mortgage insurance (PMI) prior to signing off on the loan. PMI premiums can range from 0.2% to over 1% of the loan amount per year, paid in monthly installments. To estimate this amount, take the total cost of the home minus your down payment an apply an estimated .5% (multiple by .0.005) Use this as the estimated annual PMI amount.

Taxes: You may select to pay taxes separate from your mortgage, be careful as you must make sure to save up these amounts for the twice-yearly tax bills. Many find it just easier to include it in their monthly payments. in Michigan these are due in September and February. To estimate the tax amount on this calculator, take the price of the home (or market value) x 50% (or x 0.5) for the estimated assessed value and multiply that number by the estimated 1.69%. Enter this as the estimated yearly tax amount. (Ex: \$250,000 x .05 x 1.69% = \$2,113.)

Insurance: To determine a quick estimate take the home value divided by 1000 then multiply by \$3.50. Enter that total as the estimated yearly insurance amount.

HOA: HOA stands for homeowners association and is an organization that makes and enforces rules to maintain a neighborhood, subdivision or building. Members of the HOA pay a fee in exchange for the HOA to maintain common areas, establish rules and sometimes provide amenities. These fees may be due monthly, quarterly, or yearly. If you know the HOA fees detailed in a house listing include the monthly amount here on this calculator, otherwise leave it blank. Just be aware that this fee doesn’t just apply to condominiums but can also be included for subdivisions.

Add Extra Payments link: If you want to include additional monthly or yearly amounts you anticipate making, select this link and enter in the amount(s) to see how this will impact your amortization schedule and mortgage payoff.

Select the CALCULATE button to provide your monthly mortgage payment and details.

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