HOW TO USE A MORTGAGE CALCULATOR PART 2

Bank Rate Mortgage Calculator Website:

So let’s take a look at some examples let’s just make up some things and just play with the calculator i like this calculator it comes in with an amount there let’s let’s let’s see what it is for a hundred thousand dollar home all right if we were going fha what is that three and a half percent down so all you have to do is type in three and a half percent

And your down payment is automatically figured out if you want to do 10 down that automatically goes in there as well it shows you the payment that you’re going to have right 30-year term well what if i want to do 15 years it’s a little bit more 300 well 200 something dollars more on the payment so you can see how that works so let’s go back to 30 years i’ll

Keep that interest rate where it is but let’s just look at some of the other things on the calculator okay uh let’s see right there let’s look at some other things here over here to the right you can see if there’s homeowners insurance excuse me a home owner’s association fee you’ll put that here property taxes go here homeowners insurance go here but this

Calculator has advanced options let’s take a look at those that allows me to put in the zip code let’s put a zip code for raleigh 27615 right and you don’t have to do this but let’s just say the score is around 680. now they are going to figure out for you automatically what the going tax rate is and what the going homeowners insurance is and let’s say you’re

Moving in a new subdivision you know there’s a 25 homeowners fee you add that in and you can go ahead and click hide the options just open those again make sure you stay the same and let’s go ahead and change the amount let’s change it to 200 000. like not many houses out there 400 000 anyway right but that was for some to make the examples simplistic so

Two hundred thousand dollar home fha down payment is three point five percent that’s seven thousand down over a thirty year period i just wanna make sure my information stayed the same here you see how the property taxes went up the house homeowners insurance say the same and excuse me homeowners insurance remained the same and homeowners association was input

So that’s going to stay the same so when you’re looking at your home price you can at least get an idea of what’s going to be going into that payment right homeowners association property tax homeowners insurance and then the loan itself making it 11.75 now these days i’m seeing people all the time looking at houses in the 300 000. 300 000 on the range let’s

Say that 3.5 again makes it about 10 500. i see this a lot so you know what you’re working with they jumped our property tax up didn’t it also let the homeowners insurance at that rate now personally i don’t think there’s any way that a 300 000 home is going to have that low amount of homeowners insurance so we’re gonna go ahead and let’s say we make that 75

Dollars a month and that makes our payment just a few dollars more only property tax insurance so these are in escrow so you’re going to pay homeowners insurance 12 times a year property tax and homeowners association is going to be paid 12 times a year so that would be your total so let’s just say for instance at 75 a month i’m expecting my insurance my

Homeowner’s insurance to be how much 75 times 12 right so that’s 900 a year uh 215 on the property taxes so that times 12 is going to hundred and be dollars a year that’s the average tax rate in the volley area right and my homeowner views it’s going to be about 300 right what is that 25 times 12 300 a year all right so i encourage you to play around with

This calculator you can put anything in here you want right you can put in 250 000. and now the down payment dropped a little bit automatically so let’s just make that three and a half percent making the down payment 87.50 keep in mind this is really going to be difficult to get out of for some of you so before you start looking at a home let’s make sure we’ve

Got some money saved i have to save up some money this is a good way to take a look uh rates are at three percent three and a half percent for a lot of good credit clients so that might be something that helps you a lot you see your payment went down significantly with that uh half a percent a little more than that being dropped uh let’s say we dropped that

To three percent and you had another drop there okay so whatever that is whatever your interest rate is it’s going to automatically calculate in the difference for you payment goes up to 1430 principal and interest changed here so i don’t think there’s anything else i need to say about this i know you see the calculator use the link go ahead and just try

Different amounts see what’s going on in your area see what prices um are out there for the homes that you like and go ahead and like you say here you know figure out your own payments figure out your own escrow and so you can get a good idea of what you’re looking at so at that point i’m going to go ahead and cancel the video we’ll close it out here and you

Guys can just let me know if you have any questions thank you

Transcribed from video
HOW TO USE A MORTGAGE CALCULATOR PART 2 By PERSONAL CREDIT SOLUTIONS OF NORTH CAROLINA