While this is a simple question, so many factors determine the answer. Buyers need accurate information up-front in order to make a well-informed decision. Before experimenting with an online mortgage calculator, dive into the information below to ensure that you understand all factors that can determine how your payment will be calculated.
Mortgage Calculator Issues
Online mortgage payment calculators don’t always cover all basis. Sure, they easily spit out a principal & interest payment, but is a payment calculator really doing all of the following?
- Qualifying a buyer based on credit score, income, and debt level?
- Factoring in mortgage insurance for low down payment loans?
- Including actual property taxes and insurance quote?
- Including Government loan options accurately? FHA, VA, USDA
- Having a discussion of goals?
What Will My House Payment Be?
This is one of the most popular questions we receive from clients. As mentioned, online payment calculators create a false payment up-front. Then, once the actual program and buyer qualifications are matched up, often the buyer finds the payment is much different. Why are payment calculators so far off? Look at the small print and often they assume 20% down payment conventional loans plus the estimate may not include taxes and insurance. Buyers looking for a low down payment mortgage are most surprised because it has not factored in a higher loan amount, possible mortgage insurance, and then including taxes and insurance in the payment. That is a lot to leave out, and it mostly hurts the inexperienced first-time buyer.
How Do I Find Out My Real House Payment?
This is going to sound like a sales pitch, but it really is the best way. Talk to an experienced mortgage lender. It starts with answering questions, reviewing the credit report, and discussing goals. Completing the mortgage application may be done online using our smart, interactive QuickStart system. Conversely, buyers may speak directly to a mortgage loan officer for completing the application. Either way, the next step includes working with a mortgage loan officer to determine program qualification, answering buyer questions, discussing debts, and planning out the home purchase process. If you would still like to just mess around with some numbers online, we have some great tools for you to utilize.
Is There An Accurate Online Mortgage Calculator for Low Down Payment Programs?
Actually, we do have some smart payment calculators that factor mortgage insurance, funding fees, principal & interest, plus taxes and insurance on FHA, VA, and even USDA home loans. Imagine only using the principal and interest payment calculated on a 20% down mortgage, only to find out that the rest of the items are left out! If you want to test out loan specific online calculators, make your choice below from Team Move Mortgage of OVM Financial:
This loan calculator will determine a very accurate FHA loan payment based on your input. Based on your down payment amount, it will calculate your FHA PMI and financed funding fee. These features are rare among online calculators. Test it out.
The VA mortgage calculator allows a Veteran to customize the mortgage payment. Plus it includes key VA home loan factors such as VA funding fee, funding fee exemption, first time or subsequent use, a branch of service, loan term, and more. That’s a lot better than using an online calculator figuring 20% down! Check out our VA loan payment calculator here
USDA home loans provide for an excellent, no money down option. By just entering a price, choosing a rate, and entering taxes & insurance, a buyer can have a very accurate payment. The full payment even factors in the USDA funding fee and annual fee. It is very rare to find a USDA online calculator, so make sure you check out our USDA mortgage calculator.
Have a Property You are Interested In?
That is great! Even if this ends up not being the final one, let’s discuss it. It is always best to run scenarios on a particular price, property taxes, insurance, and down payment. Even if it isn’t the final one purchased, it could provide a very accurate quote to get started. As mentioned above, having a thorough discussion of goals and completing the loan application are the first two steps to finding and buying a new home. Not buying now, but want to get ready to buy in the next few months? The same answers apply! Contact us so that you know where you stand and we will help provide a plan to get into a new home!