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- What Are Netting Escrows & How Does It Work?: The Best Guide - January 2, 2024
- The Secret About Prescriptive Easement: Top Guide 1 Must Know - December 4, 2023
- About Home Equity Loans In Texas And How Can One Obtain It - November 27, 2023
Simple Mortgage Payment Calculator
There are numerous simple mortgage payment calculators in Texas. Some may be specific, while others are more generic!
The most accurate simple mortgage payment calculator is the one, which gives you results based on the lender’s point of view.
The intention to use a simple mortgage payment calculator is to anticipate your mortgage payments when you are refinancing or buying a new house. You might feel the need to see if your payments fit your monthly expenses.
Let us understand a few tips on how to use a Simple Mortgage Payment Calculator in Texas to its best.
Finding the right and Simple Mortgage Calculator
It is imperative to know if you have the right simple mortgage payment calculator In Texas based on what you are using it for.
Are you looking for a Rate and Term Refinance(RTRF), a Cash-out Refinance(CORF), or a new Property Purchase, the type of calculator you might want to use for payment calculation would vary.
For example, if you are looking to buy a new home, the simple mortgage payment calculator may also include mortgage insurance if you are putting down lower than twenty percent as a down payment.
Information Required for Calculation
Most people using the simple mortgage payment calculator in Texas consider the payments, which include Principal and interest. Well, that is what most of the simple mortgage payment calculators show when you input your numbers.
The Principal and interest are not the only factors included in your payment. There are your Property Taxes and Home Owner’s Insurance, which are part of your monthly mortgage payments too.
The reason why most of the calculators show only Principal and interest is because the taxes and insurance vary from state to state and location to location. You might want to look at your monthly payments from a lender’s point of view.
A lender would calculate your monthly mortgage payment, including all the possible factors like Principal, Interest, Property Taxes, Home Owner’s Insurance, and in some cases, Mortgage Insurance, and HOA.
It could always be deceiving when you are looking at numbers with only the Principal and interest.
How to Get the Required Information
1 - Interest Rate:
You can get the interest rate from your bank or google the current market mortgage rate to have an idea of what the current mortgage rates are locked at.
Lenders usually quote interest rates a little higher than the current rate considering the worst-case scenario. So when you get the current market interest rate, we suggest taking it 0.2% to 0.4% higher than the current interest rate.
It ultimately depends on your credit score and other factors for a lender to determine the best interest rate for you.
Lenders usually quote interest rates a little higher than the current market rate considering a worst-case scenario.
So when you get the current market interest rate, we suggest you consider taking a 0.2% – 0.4% higher figure than the current interest rate.
2 - Loan Amount:
If you are planning to refinance, you can get the current loan balance from your existing lender. If you are also looking to tap into your equity for some extra cash, then add the amount you need to your current loan balance.
This would give you the new loan amount that you need to put into the mortgage payment calculator.
If you are planning to buy a new home, then you might need to subtract the down payment that you are making from the sales price, which would give you the loan amount.
3 - Property Taxes:
t could be possible that some of us are not sure about property taxes in the area. If you are refinancing, you might get that information from your current lender who holds your mortgage, or you can refer to your monthly mortgage statement.
If you are buying a new home, you can get in touch with a trusted real estate advisor, or you can google the current property taxes in that city.
4 - Home Owner’s Insurance:
Home owner’s insurance is subjective to the type of coverage that you carry out and whether your house would have earthquake insurance, flood insurance, or any other particular policies attached to your insurance.
You might want to speak to your insurance agent to figure out the level of coverage that is right for you and get the best insurance for your home.
If you are refinancing, you can get that information from your current mortgage lender or your monthly mortgage statement.
Conclusion
Once you have all the information that you have collected from various sources, you should be in a position to enter it into a simple mortgage payment calculator and get an estimate of your monthly mortgage payments from a lender’s point of view.
Once you get the estimate, you can now decide how to manage your expenses around the monthly mortgage payments.
