I was meeting with a home buyer earlier today, and she asked me how to figure out how much the monthly mortgage payment would be on a house she saw online. Now, without speaking to her mortgage banker, I can’t give her or you an exact amount, but let me tell you what I told her.
I recommend keeping a mortgage calculator app on your phone and or at least on your computer for quick reference. There are a ton of mortgage calculator apps and websites out there, but the one I have on my phone is Matt Baker’s Mortgage Calculator. It’s a free app, and I found it very quickly in the Android Market. I don’t have an iPhone, but if you do, I’ve been told it’s also in the iTunes market.
Now, once you have your mortgage calculator in front of you, plug in as many of the details about the home as you know. The more you know up front, the more accurate the calculator can get. Here below are the six most important items you should know about the home before you can calculate your monthly mortgage payment. For more information about each item, watch this video or feel free to post a comment below!
1. Loan Amount
2. Mortgage Term
3. Interest Rate
4. Annual Property Taxes
5. Annual Homeowners Insurance Premium
6. Private Mortgage Insurance (PMI) Rate
So, there you have it. Those are the six most important numbers that will impact your monthly mortgage payment on any given house here in the Greater Phoenix Area. But there is one other important number that won’t be wrapped into your monthly mortgage payment that you should still keep in mind, depending on what kind of house you are planning to buy.
If you are planning to buy a home in a community with a homeowners association (HOA), that HOA will charge a monthly assessment in addition to your monthly mortgage payment. I’ve seen this number as low as $15 – $20 per month, and as high as $500, $600, even close to a thousand dollars for some luxury condominium communities. If you’re going to consider homes with HOAs, make sure you talk with your Realtor about how much you can afford and setting a limit now before you get your hopes up about a home with monthly HOA assessments you can’t afford.
Thanks for watching. If you have any questions about buying a home here in the Phoenix and Scottsdale area, please feel free to contact us here, or post a comment below!
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