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Determining the Right Mortgage Payment Using a Mortgage Calculator

Lisa Siranovich • Aug 31, 2012

August 31, 2012 | Mortgage News

To help determine the right payment for a mortgage loan that’s right for your particular financial situation, you can take advantage of online mortgage calculators like those on Sail Mortgage and other sites with similar calculator functions. After entering the appropriate data, you will receive answers to your mortgage payment questions in seconds.


For example, you can find a mortgage calculator to do the following:


*Help you decide whether or not to refinance

*Determine how much payment you would have to make on a mortgage

*Assist in helping you decide whether it makes more sense to rent or buy

*Help you decide on how much home loan you can afford

*Help you assess how much you can prudently borrow


As with any other calculator, the accuracy of what you enter into it will determine the authenticity of what comes out. The following are some of the pieces of information you will need to obtain answers to your scenarios:


Total cost of the home: Have an estimated figure on what the overall cost of the home will be.


Down payment: Know how much cash you will be putting down.


Term: You will also need to know the length of your loan. This can be anywhere from 5 to 40 years.


Debt: You will need to know your current monthly other-than-mortgage payments. This will include car notes, student loans, credit cards, etc. Normally, lenders do not want your total debt including housing to exceed 35% (it may even be lower) of your gross monthly income.


PITI (principal, interest, taxes and insurance):


Principal: This is the true amount of the mortgage. It is the amount of the loan you will be paying off.


Interest: This is whatever the quoted interest rate is on the loan.


Taxes: This refers to the property taxes homeowners must pay. You can pay it separately (they are usually split into two payments per year) or you can have it automatically taken from your payments to the mortgage holder. The mortgage holder is then responsible for making the bi-yearly county property tax payment.


Insurance: This means two types of insurance:


Home insurance- This is required insurance to protect your home from liability lawsuits, bodily injury and damage that occurs on the property.


PMI (Private Mortgage Insurance) – If you make a down payment of less than 20%, you will have to buy this insurance. This insures the lender against the possibility of your defaulting on the loan. It usually has to be carried until there is 20% equity in the home. Then you can request the requirement to be removed.


You now have enough information to play out some interesting scenarios. For example, if you wanted to see if your income was enough to qualify for a loan, this is what you might enter:


Desired mortgage: $100,000


Length of loan: 30 years


Interest rate: 5%


Property taxes: $2,000


Total monthly non-mortgage debt: $300


After this information is entered in the calculator, hit submit. These are the factors it calculated for:


Monthly principal and interest: $536.82


Total monthly housing payment (This includes property taxes and insurance.): $1,003.49


Required salary: $34,405


In order to get started using a mortgage calculator, visit the following page to make use of several different types of calculators that we’ve custom developed to help you in your home buying and refinancing decisions: http://www.sailmortgage.com/resources/mortgage-finance-calculators/ Or, call the number at the top of your screen now to speak live with a mortgage lending expert from a leading Pittsburgh mortgage company.

By Lisa Siranovich 29 Jun, 2019
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By Steve Taylor 26 Aug, 2012
FOR IMMEDIATE RELEASE Leading Pittsburgh mortgage company Sail Mortgage issued a public statement today that warns mortgage borrowers against rate timidity. PITTSBURGH, Pennsylvania August 23, 2012 Sail Mortgage – a Pittsburgh mortgage lender – indicated this week that rate timidity in the mortgage and real estate markets could be a bad approach for many homebuyers. Lisa Siranovich, President of the company, stated that timid behavior as a result of waiting for better rates could actually cost more in the long run; “Well the obvious response to the question of waiting for a better rate is that it might never come and in fact could increase,” Siranovich said recently, “but overall buying a home is about a lot more than just the rate.” Siranovich would know. As President of the Pittsburgh mortgage firm, she’s seen many mortgage borrowers wait too long and end up not only with a higher rate, but missing out on the home they truly wanted. “The question you should be asking yourself isn’t “are rates going to go lower,” but instead; “is now the right time for me to buy a home?” There are many factors that go into buying or refinancing a home or property, and while saving money is obviously one of those factors, there are much more important ones to consider.” Siranovich went on to explain that factors like the location of the home and its proximity to good schools are probably the most important, while the actual home itself is also a major consideration; the need for repairs or improvements could eventually far outweigh any savings by waiting for a lower rate (that might never materialize). Even more importantly, she stressed the importance of the buyer’s overall financial picture as being paramount; “Buying a home is a lifetime investment and for most people, it’s their biggest investment. Understanding how your financial picture will change over the term of your mortgage is, in my opinion, of more importance than holding out against the right home or property while you wait for rates to go down. If two years from now rates do go down a little, but you missed out on the right home for your budget and personal needs, then your regret probably won’t be eased much by the relatively small savings you’ll realize over the life of your slightly lower-rate mortgage.” Sail Mortgage is a privately held Wexford-based mortgage provider servicing the greater Pittsburgh area and beyond. For an immediate consultation or for a press kit, please visit: http://www.sailmortgage.com or call (724) 934-2800
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