Once you calculate your desired monthly mortgage payment, you’ll be better equipped to select the best mortgage and home for your needs. Here’s a guide to the top factors that most mortgage loan calculators use as inputs, and tips on next steps.
Monthly mortgage payment factors
- Loan amount: The total amount you will borrow from a mortgage lender like KEMBA to buy your home.
- Interest rate: The cost to borrow money from a lender to buy a home, which is represented as a percentage of the principal loan amount. This will vary depending on your credit score, the amount of your down payment and housing market values.
- Loan term: The amount of time your mortgage is set for. Typically, loan terms for mortgages are 15 to 30 years, but there are often other adjustable-rate term options.
- Property taxes: The amount that is collected by local, state or federal municipalities, which is based upon the value of your property. Use this guide to find the average property tax rates in Ohio and around the country.
- Homeowners insurance: The cost to insure your home based on your home features, where you live, your possessions and other details.
- Private mortgage insurance (PMI): PMI be get added to your monthly mortgage payment to help protect the lender in case you default on your loan. PMI is typically charged to anyone who is putting down less than 20% of the home purchase cost up front.
- Homeowners’ association fees: For those who live in a planned development or condo, there may be additional fees to cover expenses for shared amenities and services like snow removal, pools and landscaping.