Thursday, March 7, 2013

What Would My Total Monthly Mortgage Payment Look Like?



Rents are still high, vacancy rates are still very low, and interest rates are still excellent (though we experienced them going up for the last few weeks, which was a bit scary). Thankfully, this week rates went back down a bit to 3.55%, from 3.64% last week. 
So what does a total mortgage payment look like? Some of those mortgage estimate websites only calculate your principle and interest, but forget about important fees like taxes, insurance, and mortgage insurance!
Let's do a couple case studies - you might be pleasantly surprised:
                  Purchase Price: $200,000
Downpayment: 3.5%                            Downpayment: 20%
Interest rate: 3.55%                            Interest Rate: 3.55%
Taxes: $1000/year                             Taxes: $1000/year
Insurance: $1000/year                        Insurance: $1000 year
~Mortgage Insurance: ~$201/mo          Total Monthly Payment: $889/month!
Total Monthly Payment: $1239/mo
*Note: After 5-7 years, you won't have to pay mortgage insurance any longer, and your total monthly payment will be $1038!                       
                   Purchase Price: $400,000
Downpayment: 3.5%                          Downpayment: 20%
Interest rate: 3.55%                            Interest rate: 3.55%   
Taxes: $2000/year                              Taxes: $2000/year  
Insurance: $1000/year                         Insurance: $1000/year
~Mortgage Insurance: ~$401/mo           Total Monthly Payment: $1695/month!
Total Monthly Payment: $2395/mo
*Note: After 5-7 years, you won't have to pay mortgage insurance any longer, and your total monthly payment will be $1995! 
If you need more estimates on different purchase prices and downpayments, please contact me!