Mortgage Payment Calculator in Colorado Springs CO
Our mortgage calculator can be applied to fixed-rate mortgage loans — it is able to display payoff schedules both on an annual and a monthly amortization level based on the starting date of the loan. The calculator also allows you to add different taxes, insurance, PMI costs as well as other related costs in order to be able to determine your total monthly payment and mortgage cost.
As you probably already know, a mortgage is a loan that is secured by a property like a house or an apartment. It includes some of the following key components:
- Loan Amount
This is the amount that you will end up borrowing from your bank or your private lender. The amount usually has to correspond to your income and the determined affordability of your loan.
- Loan Terms
The loan terms refer to the length of time you have to pay off your loan. Depending on the amount of your loan, your down payment, and your income, the loan terms vary anywhere from 5 to 30 years. As a rule, the shorter the loan, the lower the interest rate.
- Interest Rate
Interest rates can vary — from “fixed” interest rates (also known as FRMs) to “variable” interest rates (i.e. adjustable rate mortgages, ARMs). In the case of the latter, the interest rate tends to be fixed for a period of time after which it adjusts to market indexes.
The downpayment is a portion of the entire amount of your loan that you pay upfront. Generally speaking, the down payment is generally required to be around 20% of the price of the property. If the downpayment is less than this amount, a Private Mortgage Insurance (PMI) usually has to be purchased. In addition, if the down payment is indeed less than 20%, banks tend to demand much higher interest rates.
Additional Costs and the Mortgage Calculator
Unfortunately, the total cost of your mortgage includes a number of other extra costs and expenses which arise when you want to purchase a property. Take a look at some of these other possible costs:
- Property Taxes — these are taxes that a property owner pays to a governing authority, specifically a municipal or county government. The annual property tax depends on the location of the real estate, but it normally ranges between 0 and 4% of the value of the property, although it can sometimes even be as much as 9 or 10%.
- Private Mortgage Insurance (PMI) — this is a type of insurance that protects the lender if the borrower does not pay off the mortgage under the required terms. The price of the PMI varies but it normally ranges between 0.5 to 1.5% of the amount of the mortgage.
- Homeowner’s Insurance — this is a type of insurance that is designed to protect the property owner from potential accidents that might happen to the property, and it includes personal liability coverage that applies not only to the property but also to injuries that may happen off the property as well. The annual cost of this insurance varies but is normally between 0.1% and 5% of the value of the property.
- Closing Cost — the closing cost is a fee that is usually paid at the end of the transaction. Although this is a one-off fee which covers expenses such as the attorney fee, the recording fees, mortgage application fee, as well as various taxes, it can be quite expensive. For instance, for a $300,000 transaction, it is usual to pay $10,000 in closing costs.
Mortgage Payment Calculator and Paying Off Your Mortgage
Just like any loan, the earlier you repay your mortgage, the better. If you are unable to cut off a significant chunk of your mortgage but you are planning to cut down the interest, there are a number of ways you can do so. Our team at Buy Sell Impact would be happy to offer a number of solutions for maximizing the opportunities you receive from your mortgage without it costing an arm and a leg. If you are interested in ways that you can make the most of your mortgage, or you need certain clarifications regarding your mortgage calculation, feel free to contact us for more information. At Buy Sell Impact, we are happy to offer a free consultation regarding the mortgage process, so do not hesitate to contact us today at 719-345-2300.