How to Calculate the Monthly Payment for Your Home Loan

– Hi everybody, welcome
back to my channel, for all your mortgage education needs. Thank you for joining me this morning, or this afternoon, or whatever
time it is where you are. This video is about calculating your monthly mortgage payment,
and getting it accurate. I can not tell you how many times people call to get financed
and they go online, and they calculate mortgage payment, they don’t know they are
missing a million pieces and they are way out of the
ballpark for what they expect and what is real, so
we need to change that. Right now, I’m gonna go
through how to calculate the mortgage payment. This is after I’ve done
all the recon. work, so if you wanna know how
to get these answered, or the solution, the
information shall I say. Maybe I’ll get my words right eventually. The information of the data that’s put
in here you’re gonna see, then watch my other video on how to do all the
right recon. to figure out what your monthly mortgage
payment is going to be. I’ve already done that in a previous video so now the information has been received and I’m gonna show you
how to figure this out. So here is where I have
done all of my recon. work. I am so fancy, right? Look at this, so cool, professional fancy. Anyway, in order to accurately calculate a potential mortgage payment, we needed to know the loan term, the interest rate, if
there’s PMI, how much is it, if there’s flood insurance how much, if there’s home insurance to
get the principal and interest from the loan information above. How much is property taxes, and how much are home association dues. So we’re figuring out a
monthly mortgage payment. First of all, even though these
figures come to me annually, I’m gonna need to divide out, so I’m gonna go, 1625 divided by 12, so that’s 135.42 for this figure. 1860 divided by 12, we’ve got 155 for this figure, and then we’ve got 325, divide that by 12, we’ve got 27.08 for that figure. So now I need to figure out
the principal and interest, right, ’cause that’s what’s missing now. So we have, oh you know what I left off? Actually, we need the loan
amount, didn’t do that. Let’s say it is 210,000. Okay, we’ve got 210,000 loan amount, we’ve got a 30 year term, 3.875 percent interest,
calculate our payment, 987.50. To that, we’re gonna add it, we’ve got 135.42 for home insurance. We have 155 for property taxes, and we have 27.08 for association dues. Looks like the total
monthly payment, the PITI, Principal, interest, taxes, and
insurances is gonna be 1305. Now, I do calculations all day, and I do all of them at least twice, because things happen, things malfunction, you press the wrong buttons, right? So, do this again. $210,000 loan amount,
a third of your term, 3.875 interest gives
me a payment of 987.50. I add home insurance, 135.42,
property taxes at 155, association dues at 2708, gives me 1305. My flood insurance was
none, my PMI was none. I would be adding those in if I had them, and so this is how I accurately estimate a monthly mortgage payment. This is much more detailed and in depth than when you go punch in how to calculate your mortgage payment online and you get basically this
part of the information, and this is super inaccurate, or left off and it drives me crazy ’cause I want people to
have the right information. So anyway, hope this helps you. Thank you so much for tuning in. Make sure that you share
with your friends and family if this might help them with
anything that they’re doing or going on with mortgage financing, or if they’re thinking of buying homes and they wanna calculate some information and do it accurately
and not have surprises. I hope this helps you. Have a super fabulous day. (upbeat music)

One Comment

  • cool content you deserve more subscribers

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