This calculator does two things: It shows you the monthly payment on a specific house purchase, and estimates how much house you can afford based on a given monthly payment
actual monthly payment will be quite a bit more than this,
sometimes by as much as 20%?30%. This is because of escrow.
Mortgage lenders require that you pay into an escrow account for your
homeowners insurance and property taxes. Each month you pay approximately
1/12 of the annual cost of insurance and taxes into your escrow account,
and the mortgage company pays these bills for you from the escrow account
You can get an estimate of escrow as a percentage of the mortgage
payment by talking with real estate agents and home owners in the area where
you want to buy a house.
You can enter a dollar amount for yearly escrow or the percentage value for
more realistic answers
Arguments
- price of the house you want to buy
- the amount of down payment you will be able to pay
- interest rate
Results