how much do you pay for your home mortgage?
by Mortgage Rates on Thursday, September 30th, 2010 | 3 Comments
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one of my friend is paying £650 a month.
Different calculators make different assumptions with regards to downpayment, interest rate , taxes and insurance. A loan of 122,000 at an interest rate of 6% will give you a payment of around 700 per month for principal and interest. Depending upon where you live you could very well pay over 1000 per month including taxes and insurance. Try this calculator where you can change the variables. I promise it won’t lie.
The assumptions will change and they can really, drastically affect the mortgage payment. You have to know if they are estimating taxes and insurance or not.
Your loan of 122,000 will have principal and interest payments of $751 (for a 30 year fixed loan at 6.25% interest).
At 4% interest (not saying you can find it, just for the difference in payment) the payment would be $582. At 9% interest that loan would be $982 per month.
Taxes. Taxes can run anywhere from 0.5% of the value per year up to 4% of the value per year. It could range from $508 per year ($60 a month) up to $4880 per year or $410 per month! Insurance, depending upon where you are, could also have a huge range from a few hundred a year to a few thousand.
Then, if you don’t put down 20%, you’ll have PMI (private mortgage insurance) which could add up to another $200 a month onto your loan payment.
It is confusing and depending on what is included in the calculation, it will look very different.
good luck!
my loan is for $260,000. I pay $1500 a month at 5.5% interest and pay my taxes and insurance on my own (they are not included in the $1500).