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Calculating A Monthly Mortgage Payment

February 8, 2016 by · Leave a Comment 

Calculating Your Monthly Mortgage Payments

Looking at homes for sale in Pawleys Island?? Want to estimate a monthly mortgage payment?

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Let us know if we can help you calculate a monthly mortgage payment.

 

 

 

 

 

 

 

 

One of the most important factors to consider when buying a new home is affordability.  As a general rule, mortgage payments should not exceed 25-30 percent of your monthly take-home pay.  The best way to know what you can afford is to determine the possible payment range by comparing the price of the home with other essential ingredients. When searching for your new home with Pawleys Island Real Estate, we can use a mortgage calculator to more accurately assess a monthly payment.

 

Figure Out How Much You Want To Borrow 

 

Your first step to calculating your monthly mortgage payment is knowing how much you want to borrow.  This can be determined by subtracting your down payment amount from the purchase price of the home, which will give you the amount that you will need to request from a lender.

 

Know Your Rates 

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Your interest rate will partially fluctuate based on your FICO score and loan term(length).

 

 

 

 

 

 

 

 

 

The next step is to determine the current interest rates for the purchase of a home.  Rates vary and may change often, so check with your lender for current rates.  It’s worth noting that the interest rates you receive will, in part, be based on your credit history.  This means that knowing your FICO score and credit rating will give you a good idea as to how your interest rates will be calculated.

 

Choose Your Loan Term 

 

Your monthly mortgage payments will be determined by a number of factors, including the term of your loan.  If you were to borrow $250,000, your monthly payments would be less with a 30-year mortgage than with a 15 year mortgage.  The reason is because it would take larger monthly payments to get the loan paid off quicker, which is why you will need to select a loan term before calculating your payments.

 

Additional Costs To Consider 

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You must also consider taxes and homeowner’s insurance into the cost of your mortgage payment

 

 

 

 

 

 

 

 

 

Your total mortgage payment will include taxes, homeowner’s insurance and possibly even private mortgage insurance (PMI) if you provide less than 20 percent down and your loan requires it.

 

Just The Facts & Figures 

 

Now that you know how much you need to borrow, have chosen your loan term and are familiar with the current interest rates, it’s time to calculate your payment.  Most lenders offer a mortgage calculator on their Web site or you can get an estimate by speaking with your lender.  Call me and I will be able to assist you with this! As an active Pawleys Island Real Estate Agent, I am here to help you with all your home buying/selling needs.

 

Melissa Keller

Pawleys Island Realtor

Pawleys Island Real Estate

Pawleys Island Real Estate

 

 

 

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