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How does this simple mortgage calculator work?
This simple mortgage calculator is easy to use. The good news is that this mortgage payment calculator can be used for a new mortgage and this mortgage calculator for a home can be used to refinance a mortgage.
To use this mortgage calculator, here are the steps to calculate a new mortgage:
1. Enter the home price
2. Enter your down payment
3. Enter the loan term
4. Enter the interest rate
5. You’re all done
Then, the mortgage rate calculator automatically calculates your:
- Monthly payment
- Annual payment
- Total interest
- Total payment
- Payoff date
To use this online mortgage calculator, here are the steps to calculate a mortgage refinance:
1. Enter your current mortgage loan amount
2. Enter your current interest rate
3. Enter the remaining mortgage loan term
4. Enter your interest rate for your mortgage
5. Enter your new loan term for your mortgage
6. You’re all done
Then, this home mortgage refinance calculator will automatically calculate:
- Total interest savings
- Total monthly savings
- Total interest savings
- Total mortgage loan term difference
Can this mortgage payment calculator also calculate how much you can save with mortgage refinancing?
Yes, this mortgage calculator can calculate your mortgage cost for a new mortgage as well as for a mortgage refinance.
How much do you have to put down to buy a house?
When you get a new mortgage, you often can choose the size of the down payment. Typically, a good rule of thumb is a 20% down payment.
For example, if a home cost $500,000, here is how the breakdown of the down payment and mortgage:
Down Payment: $100,000
Home Purchase Price: $500,000
You are not required to choose a 20% down payment, however. Some mortgage programs require as little as approximately 3%, for example.
Here is a good rule of thumb:
- The higher your down payment, the lower your mortgage amount
- The lower your down payment, the higher your mortgage amount
- The higher your down payment, the lower your mortgage interest rate (potentially)
- The lower your down payment, the higher your mortgage interest rate (potentially)
A down payment is the amount of cash you pay upfront to get a mortgage loan. Your down payment represents your initial equity, or ownership stake, in your home. The remainder of the purchase price of your home is the mortgage.
What are the benefits of a 20% down payment?
There are several benefits of a 20% down payment:
- Small mortgage amount
- Lower upfront fees
- Lower ongoing fees
- A lower monthly mortgage payment
- More equity (ownership) in your home
- A (potentially) lower mortgage interest rate
When shopping around for mortgage rates and mortgage refinance rates, make sure to use an online mortgage calculator. Also, make sure to compare the best rates for mortgages and mortgage refinance.
What are closing costs on a mortgage?
When you get a mortgage, a home buyer will typically pay about 2-5% of the home purchase price of their home in closing fees. Closing fees are fees that are associated with your home purchase that are paid at the closing of a real estate transaction.
For example, if you home costs $100,000, your closing costs could be about $2,000 – $5,000.
The closing is the point at which the title of the property is transferred from the seller to the buyer.
What fees can you expect at closing?
Closing costs are about 2-5% of the purchase price of your home. Closing costs can vary based on where you live, the type of mortgage you choose and the property you purchase.
Here are some of the closing costs you can expect when you buy a home with a mortgage:
- Application Fee: The application fee covers the cost for your mortgage lender to process your application.
- Appraisal: This fee is paid to the appraisal company who the provides a fair market value of your home.
- Attorney Fee: This attorney fee is for a bank or lender attorney to review the closing documents on behalf of the bank or the lender.
- Closing Fee: This fee is paid to the title company, escrow company or attorney for the closing.
- Credit Report: A credit report is used to check your credit and helps determine your mortgage rate.
- Escrow Deposit for Property Taxes: You may be asked to put down a deposit of property taxes equal to two months
- Home Inspection: Prior to buying a home, it is recommended to conduct a home inspection to ensure that your house is safe, structurally sound and not in need of major repairs.
- Homeowners’ Insurance: Homeowners’ insurance protects you in case of damage to your home. Homeowners’ insurance may be due at closing.
- Title Insurance: Title insurance is an insurance policy that protects you if a third party challenges the title or ownership of your home.
- Origination Fee: Mortgage origination fees are the cost of originating your mortgage.
- Private Mortgage Insurance:If your down payment is less than 20%, you likely will be required to get private mortgage insurance (PMI) at closing.
- Property Tax: If there are any property taxes due within 60 days, they may be due at closing.
- Recording Fees: A recording fee is paid for the recording of public land records.
- Survey Fee: The survey fee is paid to the survey company to verify the property lines and boundaries of your property.
- Title Search: The title search fee is paid to the title company to ensure there is a clean title and no one else has an ownership claim to your home.
- Transfer Taxes: This transfer tax is for when the titles passes from the seller to the buyer.
- Underwriting Fee: This underwriting fee covers the cost of underwriting a mortgage.
- VA Funding Fee: If you have a VA loan, you may be required to pay a VA funding fee at closing.