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How to Use our Home Purchase Payment Calculator
Ever wonder how much money you’d need to budget in order to buy your dream house or an investment property?
If you’ve explored our website, you may have seen our Mortgage Calculators. We have many different calculators on our website if you want to check them out, but today we’re going to go over the Home Purchase Payment calculator and how you can use it as a tool to construct a budget for what monthly payment you can afford. This estimate can also include annual homeowners insurance, property taxes, and possibly HOA payments.
We’re going to walk you through an example now. If you’d like to follow along, or do an estimate of your own, you can check out our Home Purchase Payment Calculator.
Using the Home Purchase Payment Calculator
In this example, we’re going to be “purchasing” a home in Arizona.
Steps to use the Mortgage Calculator.
Select which state you wish to buy a house in. This will automatically provide you with the average cost of a house in your state, the average homeowners annual insurance payment, average annual property taxes you would pay based on the price of your house, down payment, and interest rate you would currently be borrowing at.
Select the price of the property that you wish to buy. You’ll notice that when you adjust the price of the property, the down payment and the monthly house payment automatically change. However, the average taxes and insurance do not change. Remember, you can always adjust these figures to calculate more exact estimates.
Select the down payment you wish to put down and the length of the loan. It automatically populates with a 30 year loan. You’ll notice that if you put in less than a 20% down payment then Mortgage Insurance or Private Mortgage Insurance will be calculated as well in the lower left hand corner. You can also change this number to get a more exact estimate.
Input the exact calculated Real Estate Taxes and Homeowners Insurance. If you’d like you can input the exact taxes and insurance policy numbers into the calculator. This will more accurately reflect your total estimated monthly payment.
Once all of the information is inputted correctly, your monthly payment will be reflected at the bottom of the calculator. This number is conveniently highlighted in green. The estimate includes all taxes and insurance payments based on the information that you provided in all other sections.
We hope this gives you a fantastic sense of how to use this calculator. This immensely useful tool will give you a great idea of how to budget for buying a property and whether you’d be comfortable making that particular investment. After all, one of the best things you can have when buying property is confidence in the financials of a particular deal.
If you’d like some help estimating your potential mortgage, or have any mortgage related questions at all, you can send us an email at firstname.lastname@example.org.