Before you dive in too deep searching for a house to buy, it’s very important to understand a realistic monthly payment amount that you are comfortable with and can afford. That goes beyond a lender telling you what you qualify for and starts with a question of “How much am I comfortable spending each month?”
That’s why we offer this detailed mortgage payment calculator for you to evaluate your options so you can start your home search with an exact purchase price and payment range that fits in your budget and overall goals.
Guide to use the monthly mortgage payment calculator:
Purchase price of the home you want to buy
Down payment that you are comfortable with at closing (does not include closing costs)
Mortgage term is typically 30 years or often 15 years. If 15 years, interest rate will be lower.
Interest rates can be based on national averages, located on the right and above on your screen.
Property tax rates are much higher in Texas compared to other states — ranging from 2.4% – 2.7% or even higher in major metropolitan cities and areas like Dallas, Highland Park, University Park, Allen, Frisco, Richardson, Plano, etc. Based on the counties assessed value and tax rate, property taxes for the year can be estimated (assessed value by county appraisal district * county tax rate = total annual property taxes)
Property insurance (Homeowner’s insurance) will vary depending on the age of the home, your credit, location, etc. For estimates, consider using .7% or .75% of the purchase price (purchase price * .075 = annual property insurance)
PMI – Can be avoided (call us). If putting less than 20% down, can range from .35% to as high as 1.2% for the year. The less money down, the higher the PMI percentage.
This calculator is designed to be an informational and educational tool only, and when used alone, does not constitute investment or financial advice. Before making any type of decision, we strongly recommend that you call us directly to discuss, 972-728-3420, or request a home purchase review so that we can better help you. We are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by this calculator.