Mortgage payment calculator is very important for people who want to know their monthly mortgage payments. There are two types of mortgage payment calculator: mortgage calculator without taxes and insurance, and mortgage calculator with taxes and insurance. In this turn, you are going to be informed about the second type of mortgage calculator. For more detailed information, please read the following useful information about the mortgage payment calculator with taxes and insurance.
The importance of mortgage calculator with taxes and insurance
When you use a mortgage payment calculator for calculating your monthly payment of taxes and insurance, just in instant your calculator will show the estimation of annual insurance and taxes. The calculator will inform you the breakdown and total of both monthly mortgage of insurance and taxes. This is good because the estimation is almost precisely right in amount of mortgage. With using such mortgage payment calculator, we will get the benefits, especially in managing our financial expenses. One benefit if we use a mortgage payment calculator for insurance and taxes is we can know the estimation of our financial expenses for insurance and taxes for a year. Then, we can also compare the most current mortgage payment with our previous mortgage payment. Next, a mortgage payment calculator also let us to prepare the financial needs for accomplishing our monthly insurance fee and annual taxes. But, don’t be surprised if you find that the mortgage estimation is different to your financial institution. It could be different, indeed, but the estimation is commonly less different to the fees you should pay to the financial institution.
How to use mortgage payment calculator for taxes and insurance?
Many people now use mortgage payment calculator to estimate their monthly payments, especially the taxes and insurances. They who have not been familiar with or not use such mortgage payment calculator must be so curious how to use it and how does it work. Well, the following are some procedures or steps of how to use mortgage payment calculator for taxes and insurances. Just check them out to see in more details.
- Remember, the difference between the amount of mortgage and home value is considered, especially for your down payment. If this is not important, for instance, you can ignore the down payment then subtract amount of mortgage from all payments.
- PMI (Private Mortgage Insurance) can be calculated only if your down payment is less than twenty percent of your property value. You can stop calculating if your balance of outstanding principal is equal or less than eighty percent of your home value. For your information, your actual Private Mortgage Insurance will be based on your LTV (Loan to Value), DTI (Debt to Income), and credit score.
- Homeowner insurance, property taxes, and PMI are defaulted to national averages. The averages may not be accurate for you. That’s why, it is better for you to enter and override the estimation you make.
- Please enter down the payments such as homeowners insurance, property taxes, and one-time expenses as the home value percentage and your PMI as the mortgage amount percentage. You can also enter down amounts of exact dollar if you want.
- One-time expenses here include discount points and any spending or fee of property renovation.
- Bi-weekly payments can help you to reduce the cost of total interest and fasten your mortgage payment.
- Any extra payments help reducing the loan tenure.
- Print out or share the custom link to your mortgage payment calculator. Here you can see your mortgage payment per year.
- Beside taxes and insurances, other payments that can be able to be calculated and recorded are HOA fees and PMI.
Mortgage calculator with taxes and insurance excludes the following savings and costs:
- Particular recurring costs which are related to home ownership, like home warranty, utilities, home maintenance costs, and many more.
- Any savings like your tax deductions of mortgage payments.
We all know that several recurring costs will always change time to time because of inflation, change of home value, and other factors. Certain costs, like homeowners’ insurance, property taxes, etc, will be continuing even you have paid off all loans. That’s why you must consider these factors, particularly when you are going to make a rent or buy decision.