If you are thinking about taking out a mortgage loan run some payment scenarios first. Figure out how much you can afford based upon using a simple mortgage loan calculator which will give you your payment, property taxes, fire insurance as well as take into consideration any extra principal payments that you choose to make which can help save you thousands of dollars.
Getting a competitive rate of interest as well as flexible financing terms is important, however the payment over the 180 months or 360 month term is far more important to your personal finances.
By using an accurate mortgage payment calculator, you can see if taking on a new Sonoma County Mortgage even make sense.
By using this mortgage payment payment calculator. You can begin gathering information so you can ultimately decide down the road at purchasing a house is the right decision or not. You can also use this mortgage calculator if you are considering a refinance scenario to determine your total new house payment.
Let’s say you’re looking to finance $300,000 on a 30 year fixed-rate mortgage at 4.125%. You can put in annual property taxes of 3750 per year or any number for that matter. You can also use $720 per year for fire insurance and let’s say you’re gonna make an extra $50 per month as it mortgage principal prepayment ( great strategy by the way).
Here’s how the math breaks down:
The total house payment is $1898.32 per month. This is comprised of $1525.82 for principal and interest. Hazard insurance is $60 per month and if you’re factoring in the extra $50 for principal balance reduction the total payment comes to $1948.32 per month. Doing this, shaves off nearly 2 years on your mortgage so your mortgage free in 28.2 years.
When factoring your mortgage payment focus on the total payment which includes fire insurance and property taxes monthly basis. You have two choices when it comes to mortgage loan financing.
1. Set up a monthly escrow account so your total payment includes principal and interest, taxes, insurance, and mortgage insurance if applicable.
2. Set up the mortgage so the only payment you have to make is the principal and interest payment.
Note: by setting the mortgage up without factoring in the property taxes and insurance on a monthly basis, you’ll be responsible for writing an annual check to your fire insurance company and you’ll also be responsible for writing two checks per year to the County tax collector. property taxes are due on April 10 and December 10.
You can use accurate mortgage payment calculator or you can call us.
We can run the numbers for you for a 30 year fixed-rate mortgage, 15 year fixed-rate mortgage and many other loan programs available on the market today. You can also run the math yourself by visiting our easy mortgage payment calculator to see how your mortgage interest rate will affect your total house payment.
After trying out a mortgage calculator, give us a shot at giving you a competitive mortgage interest rate quote.