Calculate Mortgage Payment

By
Real Estate Agent with Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL

       Calculate Your Mortgage Payment

There's no shortage of ways to calculate your mortgage payment, the Internet is full of mortgage calculators to calculate approximately how much a mortgage payment will be. Click on any mortgage calculator—such as this one on my personal website, this one at Bankrate or this one at the Mortgage Calculator — just enter the relevant numbers and check out the results.

You’ll see a box to plug in the mortgage amount, interest rate, term (in months) and start date. The result will give you the principal and interest portion of your mortgage payments amortized for the life of the loan, typically 15 or 30 years.

However, you won't see or be provided with what the loan will actually cost you and more importantly you won't know if you will actually qualify for the loan.

The number will simply be an approximate and more or less get you into the ball park. Typically, if you have reasonably good credit, you should calculate your mortgage payment to be no more than 28 percent of your gross income. However, if you’re debt-to-income ratio is high, your mortgage should in most cases be less. 

Whether or not you think you can afford a specific mortgage payment, it's your lender that you should consult with and obtain a pre-approval letter from. Lenders are the people that loan money and have lots of facts and figures on their side (called actuary tables) that tell them the risk is high for default if your debt-to-income ratio is high.

Other than a mortgage payment you also need to remember there are other costs associated with buying a home such as homeowners insurance, association dues (for condominiums or neighborhoods with shared-responsibility such as common areas), closing costs, money to be set aside for future maintenance (new roof, gutters, paint, etc.) and extra purchases that you might have such as: new furniture, a lawn mower, plants for the landscaping, etc.

So, if you’re ready to buy a home... saved money for a down payment, have paid down your credit cards so you're using no more that 30% of available credit and don't forget about the car payment so that your debt is low... then take the time to consult with a mortgage lender to see if you can get pre-approved for a loan. Of course, if you don't have a lender I'd be glad to refer you to one of my lenders I like and have worked with for years. Once they know your financial picture and have plugged in the numbers (your income, expenses, debt, etc.) they'll be able to can give you the actual amount that they believe you can afford on a monthly basis and will pre-qualify you.

Also, with a pre-approval letter in hand, you can be confident that when you submit an offer it will get more serious review and consideration!

If you have questions about getting pre-approved for a loan, email or give me a call. I can point you in the right direction.

Adapted from original content published at.... http://nicktpappas.com/?p=3934

Photo courtesy of Stuart Miles/freedigitalphotos.net

Nick T Pappas

 

If you need a knowledgeable real estate professional in Madison or Huntsville Alabama area, why don't you let me Google that for you! I also know outstanding agents in all states and Canada should you need help relocating to a new area.

Serving: Anslee FarmsBell Tower, Bishop Farms, Bradford Farms, BridgefieldCanebrakeChase Shadow, Cherokee Ridge, Clifts Cove, Edgewater, Emerald Forest Condo, Foxfield, Greystone Estates, Hampton Cove, Harvest, Highland Lakes, Jones Valley Estates, Kelly Plantation, Knox Creek, Lake Forest, Ledges of Huntsville Mountain, Mandolin, Maxwell Place, MidTowne on the Park, Newby Plantation, Olde Cobblestone, Overland Trace, Pebble Brook, Rainbow Landing, Rock Creek, Shadow Brook, Spencer Green, Stavemill Estates, The Bridges on the River, The Villas at Madison, Towne Lakes, Villas at Jones Valley, Walden Preserve, West Highlands, Whitehall, Village of Providence and more.

 
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Rainmaker
2,781,583
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Nick, I had a buyer deliver his pre-approval to me.  I had the buyer vetted and it turns out ... his loan person had not taken an application, pulled credit or received any of the buyers financials. During the vetting process the lender did just that. Holy cow, what a mess. No way, Jose!

Nov 24, 2015 07:19 AM #1
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nick mortgage calculators sometimes create more false expectations than they clear up.  So your advise to talk to a trusted Lender to get a better and bigger picture of all the costs involved is a very wise one.

Nov 24, 2015 07:20 AM #2
Rainmaker
1,523,593
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Hi Nick, that is great information for someone who is interested in getting a mortgage.

Nov 24, 2015 10:36 AM #3
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2,556,188
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The mortgage calculators seldom factor in all the variables and are just an order of magnitude.  only the lender can determine the actual monthly price after reviewing all the documents and the buyer's capabilities

Nov 24, 2015 10:47 AM #4
Rainmaker
2,247,917
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Nick. It is important for agents to have a good handle on debt ratios, as some clients don't have a good idea on what the different calculations are. Hopefully they are also working with a knowledgeable LO.

Nov 24, 2015 06:22 PM #5
Rainmaker
4,796,904
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Excellent advice, Nick.  There are many more costs associated with home ownership and it's best to know these upfront.

Have a Happy Thanksgiving.

Nov 24, 2015 08:48 PM #6
Rainmaker
4,064,330
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick, the payment is important, but buyers do need to know the closing costs a lender will charge.   With a call to the lender a buyer can find out all this information and get their lender letter. 

Nov 24, 2015 09:59 PM #7
Rainmaker
1,315,408
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

There is no substitute for talking with a lender, but in a pinch and help get you near the ball park (maybe a block or two away), mortgage calculators do serve a purpose. However, a mortgage calculator is not going to loan you money to purchase a house and it doesn't know your credit score...see a trusted lender.

Nov 25, 2015 02:30 AM #8
Rainmaker
4,064,330
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick T Pappas Happy Thanksgiving to you and your family!  Enjoy this special day!

Nov 26, 2015 12:02 AM #9
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3,780,401
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nick wishing you and your family a very happy and special Thanksgiving from CT.

Nov 26, 2015 01:14 AM #10
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2,556,188
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Nick T Pappas   Just a quick stop to say hello and hope you had a very nice day,  Happy Thanksgiving.

Nov 26, 2015 10:22 AM #11
Rainmaker
1,214,322
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Good message for buyers, Nick T Pappas 

Happy New Year

Jan 01, 2016 11:53 PM #12
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Rainmaker
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Nick T Pappas

Madison & Huntsville Alabama Real Estate Resource
Call or email me anytime with your questions.
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