Calculating Monthly Payment and Other Tips

Your monthly payment will include the principle, interest, taxes, and insurance on your home.  Based on the total taxes and homeowner’s insurance for the year, your mortgage company will collect a portion of these amounts each month along with your principle and interest payment.  These payments will be held in an escrow account by your mortgage company and they will make these payments for you at the end of the year when the bills come due.  This amount is calculated into the monthly payment shown by the mortgage calculator. 

Shopping around for homeowner’s insurance can save you a good amount of money on your monthly payments.  Ask your agent which homeowner’s insurance companies they recommend for your area.

Keep in mind that the PITI (principle, interest, taxes, and insurance) is not the only monthly payment that comes with a house note.  Your agent can help you determine how much more you’ll need to budget for to include your water bill, electricity, and/or gas bill.  Other utilities you may want to include are satellite TV and high speed internet.

Our mortgage calculator will give you a good estimate of your monthly payment at a given sales price.  There are a few other ways to reduce your monthly payment as well, such as putting more money down as a down payment on your home to finance a lower amount, finding a home in an area with a lower tax rate, or paying down some debts to increase your credit score to qualify for a lower interest rate.  A Blackshear Realty Agent can meet with you to discuss how we can get a monthly payment for you that you are comfortable with.  Our lenders are available to help you determine which loan program will work best for you.

A helpful tip to reduce the time it takes to pay off your mortgage loan:

If you can make one extra payment per year towards your principle along with your regular monthly mortgage payments, you can reduce the time it takes to pay off your mortgage loan by about 6 years!  Any easy way to do this is to pay half of your monthly payment every 2 weeks.  You’ll end up paying 13 full payments a year.  Make sure and let your mortgage company know you want the additional payment to go towards your principle. 

For more information about obtaining a home mortgage, contact Blackshear Realty (713) 870-5671