Chicagoland First Time Home Buyers: Calculate Your Monthly Payment

Real Estate Agent with Keller Williams Team Realty

As you are looking to buy a home, one question I always receive is how much will my monthly payment be?

There are 5 items to factor into your monthly housing Payment

1.  Mortgage (Principal & Interest)

2.  Mortgage Insurance (for those who have a down payment of less than 20%)

3.  Real Estate Taxes (paid twice a year)

4.  Homeowners Insurance

5.  Homeowner Association Fees


Let's take a look at what to expect on an $100,000 loan amount.

Here are the assumptions we are going to make.

A.  Mortgage rates as of 1/4/2013 are about 3.25% for an FHA loan for a 30 year fixed rate loan.

B.  Mortgage insurance premium is equal to 1.25% of the loan (divided by 12 to get the monthly payment).

C.  Real Estate Taxes we will use an amount of $3600 (divided by 12 to get the monthly payment).

D.  Homeowners Insurance we will use an amount of $300 per year (this is typical for a townhome or condo).

E.  Homeowners Association fees we can use an amount of $225.   


All calculations are approximate:

Monthly Mortgage (Principal & Interest)   $435

Mortgage Insurance                               $105

Real Estate Taxes                                  $300

Homeowners Insurance                          $25

Homeowner Association Fees                  $225


Total Monthly Housing Payment             $1090     



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Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Luxury Division Specialist

Now this is why I have a mortgage expert on my team.  I don't quote mortgages and they don't sell houses.  It's a very safe arrangement. 

Jan 06, 2013 08:35 AM #1
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