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