You need an ACCURATE monthly payment Calculator to correctly estimate what your true mortgage payment would be based on a sales price and specific loan program.
Many online mortgage payment calculators contain erroneous info or even --by design - intentionally misrepresent the actual monthly housing payment based on a potential sales price. These calculators often reflect incorrect, lower annual property tax amounts, inaccurate PMI or government loan MI factors, as well as unrealistic lower annual home insurance premiums --especially for a home in a high fire danger area. And this misinformation results in a false expectation of lower monthly mortgage payments.
My payment calculator will be far more precise than nearly any other you will find. FYI--always remember, a consultation with an experienced loan officer will be far more accurate than any online payment calculator. They are just a tool to ballpark monthly payments.
Click on the cell phone pic to access my online or smart phone mortgage calculator app called Loanzify. This app can be found in the IOS or Android app section on your mobile--or can be used with any internet browser.
Tip #1 - Remember to use 1.25% of the sales price.
Remember to use 1.25% of the sales price for an estimate of a California home location annual property tax --this percentage is the standard nearly all lenders use for a home purchase transaction.
Tip #2 - Home insurance annual premiums
Home insurance annual premiums will be higher in rural high fire danger zones. Whereas an urban subdivision home might have home insurance of a $1000 a year, a foothill or mountain property could be 3, 4 or 5 times that and in some cases even more. Home insurance rates are also specific to each borrower's claim history, a home's characteristics like location, age, square footage, type and quality of construction and other amenities such as any outbuildings, pool, etc.
Tip #3 - Monthly payment tip
A very quick way of calculating the monthly payment on a low or zero down payment purchase --based on average interest rates as of Feb 2024 —within a few hundred dollars or so --- is to take the sales price divided by $1000 and multiply that number by about $8. For example, a $400,000 sales price divided by $1000 equals 400. 400 times $8 equals $3200 a month for a total payment including base loan payment-- property taxes-- home insurance and any mortgage insurance. However-a more accurate way is to use my online mortgage payment calculator —click on the picture above for access--it's quick and easy.
Keep in mind
Your credit score, property type and percentage of down payment will have a direct affect on the mortgage rate you would receive. An online payment calculator is a great tool however it will never be as accurate as what you can discover from a discussion with an experienced loan professional.
Reach out with any questions--happy to answer all!