Do you want to figure out how much your monthly mortgage payment will be when you apply for a home loan program? Well, an online mortgage calculator can help you. It helps you estimate your monthly payment based on some important things associated with the home loan program.
If you are going to use a home loan calculator Texas, know the inputs you need to give –
- Home price
It is one of the vital inputs that you need to enter into an online mortgage calculator. Your home price refers to the amount that you expect to pay for a home. Check your financial condition, as well as the price of different types of homes in the area where you are planning to buy a home. Depending on these, decide an approximate home price that you can afford and enter that amount.
- Down payment
It refers to the upfront payment of the purchase, usually a percentage of the total price of the home. In the US, the down payment requirement for a conventional loan is 20% and for government-backed loans like FHA, VA, or USDA, the requirement is much lenient. If the down payment is less than 20% of the total property price, generally, private mortgage insurance (PMI) is mandatory until the principal is paid down to less than 80% or 78% of the total property price. Normally, the PMI rate ranges from 0.3% to 1.5% of the total loan amount, based on several factors. A general rule-of-thumb is that the higher the down payment, the more favorable the interest rate will be.
- Mortgage amount
Are you opting for a home loan program to finance your home? Then, you will need to enter a mortgage amount into the calculator. Subtract your down payment from the home price and you will get the mortgage amount. In case you are refinancing, this number will be an outstanding balance on your mortgage.
- Mortgage term
This is the length of the mortgage that you are considering. For instance, if you are buying a new home, you may choose a mortgage loan that lasts 30 years. On the flip, a homeowner who is refinancing may opt for a loan that lasts 15 years. Generally, the shorter the loan term, the lower the interest rate will be.
- Interest rate
It refers to the rate of interest charged by a mortgage lender. This rate can be fixed or adjustable. With a fixed rate, the mortgage rate will remain the same over the life of the loan while with an adjustable-rate, it will increase or decrease after a certain time depending on the market situation. The mortgage rate varies from lenders to lenders. You can enter an approximate rate into the calculator.
- Mortgage start date
A mortgage start date means when the mortgage payments will start. Select the month, day, and year from the calculator.
You should keep this in mind that the more accurate input you will provide to an online calculator, the better result you will get. So, give the above-mentioned inputs and get the result.
