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Penn Street Mortgage offers a wide range of mortgage loans from dozens of lenders, credit unions, and wholesale financial institutions. Our large network offers you a better opportunity to obtain the loan product and interest rate that best suits your needs.
Figuring out your monthly mortgage payment can be complicated! We hear from clients all the time that understanding exactly what they can afford and how much they will pay can be confusing. With insurance, property taxes, interest rates and your down payment, countless small factors will impact how much you are actually paying each month.
That is why a mortgage calculator can help you get clarity and understanding on what your monthly payment will be so you can explore the Pennsylvania housing market with the knowledge you need to get your monthly mortgage payment to an affordable place.
If you have never used a mortgage calculator, take some time to explore how it can help you predict the cost of your mortgage payments. Since you can customize each field and category, you can enter personalized information related to your budget, like personal property taxes in the area or how much your homeowners insurance might cost.
You will also be able to see how your monthly payments will go towards principal and interest over time since this will change as you pay down your Pennsylvania mortgage.
Whether you are a first-time home buyer or looking to refinance, this Pennsylvania mortgage calculator can help you understand the affordability of different loan scenarios.
You can explore different home prices, down payment amounts, and loan terms and get the clarity you need to see what fits within your budget before you make an offer for a home.
One of the key ways you can use a mortgage calculator is to figure out how different loan products and interest rates can impact your monthly payments. You can see how getting a fixed rate mortgage versus an adjustable-rate mortgage will impact your monthly payments over time and ensure you are making the right financial decision when it comes to your home loan.
Not sure which one will work best? A fixed-rate mortgage offers predictability while an adjustable-rate mortgage may initially offer lower payments but a higher interest rate after the initial period. By using our mortgage calculator, you can easily compare these home loan products and understand the financial implications to your monthly payment.
Ready to get started using the mortgage calculator? Before you dive in, it can be helpful to understand each of the categories and how you should calculate your costs.
Here are the categories you will want to enter to get a picture of your Pennsylvania mortgage payment accurately.
Let’s start with the basics! The purchase price is the amount you plan to pay for a home, before any deductions for a down payment. This is the list price of the home that you plan to buy.
The down payment is the portion of the home’s price that you will pay upfront when you get your mortgage. The amount you input here is the largest factor in how much your loan will be for, and will also greatly impact your monthly payment. A larger down payment can help decrease your loan amount and result in a lower monthly payment.
The term of your mortgage is the length of time you have to repay the loan. Common mortgage terms are 15, 20, and 30 years, but you can choose other time frames as well. The longer your loan term, the smaller your mortgage payment will be since it is spread out over a longer period of time.
Your loan’s interest rate is a huge factor in how much you will pay each month. This is the current market rate that you are qualified for. We can help you get pre-qualified and share some insights into the current national average for interest rates. Of course, lower interest rates mean lower costs to borrow over the life of the loan. This is also where getting a fixed rate versus an adjustable rate mortgage can impact your monthly payment over the length of the loan.
Local governments charge property tax on homeowners based on the assessed value of their property and land. These annual taxes should be considered when calculating what your realistic monthly mortgage payment will be, but the tough part is they will likely change each year. You want to ensure you are in a position to afford any changes in property tax year over year.
Homeowners insurance is necessary to protect your property against damage, theft or disasters that might impact your home. While the cost will vary based on your location, property value, and coverage selections, it is a crucial part of calculating how much your loan payments are. As you shop for your home, you can get quotes from an insurance provider about how much to factor in for basic homeowners insurance.
Another cost you might need to factor in is your private mortgage insurance. If you are purchasing a home with less than 20% as a down payment, you will have to get PMI. This protects the lender if you are not able to make payments on your loan, and will eventually go away once you have reached at least 20% equity in the home. We can help you calculate what your PMI might be and how to potentially avoid it with a larger down payment.
While a calculator is great for customizing and exploring your total monthly payment, working with a credible mortgage broker like Penn Street Mortgage is the most accurate way to understand the home-buying process and your potential costs.
If you are looking for the most up-to-date information on interest rates, home loan programs and what you might qualify for, give us a call. We are here to help you get the most competitive rates and the best loan for you and your budget.