How Do You Calculate Mortgage Payments Plus Taxes?
Homeownership is on the rise, according to the U.S. Department of Housing and Urban Development. Purchasing a home is an important accomplishment, but many new buyers wonder how much homeownership will cost. Figuring out mortgage payments and taxes can help forecast those costs. Determine the mortgage amount. When purchasing a home, this is the total purchase price minus the down payment. For example, a home purchase of $200,000 with a down payment of $40,000 would have a mortgage amount of $160,000. Figure out the mortgage term. Mortgages are available in a variety of terms, from 15 to 45 years. The most common mortgage term is 30 years, or 360 months. Determine the current interest rate. If you’re working with a lender, ask him to quote the current rate. If you haven’t secured a lender yet, check out online comparison tools such as Bankrate.com (see Resources). Enter your credit rating (poor, average, good or excellent) and the loan term to determine the best available rates. Calcula
