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What will be my monthly payment?
Use our calculator to figure out your payment plan
Your payments will change depending on which loan program you choose. However, if you have a general idea of which loan type you want, you can use this calculator to generate an amortization schedule (a payment schedule that shows how much you owe each month for interest and balance.) You can even determine the impact of any principal prepayments
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What are the components of a monthly payment?
Your monthly payment is the sum of four factors, commonly referred to as PITI (Principal, Interest, Taxes, Insurance). You may also be required to pay PMI on a monthly basis.
- Principal - The amount of the payment that is applied to the loan balance.
- Interest - The charge paid for borrowing money.
- Taxes - Property taxes. May also be paid separately to your local government.
- Insurance - Lenders require you to maintain adequate insurance to protect your home. This may also be paid separately.
- PMI (Private Mortgage Insurance) - In most cases, if your first mortgage amount is greater than 80% of the property’s value, the lender will obtain Private Mortgage Insurance (PMI) to safeguard its investment against the possibility of default. PMI premium is collected monthly along with the mortgage payment. Within three days after your loan application is submitted you’ll be sent an estimate projecting the amount of the monthly PMI premium. As your equity increases, you may qualify to have PMI removed. There may be ways to finance your home so that PMI is not required. Your loan consultant can provide you with more information.
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