Basic Mortgage Calculator

How much will a new mortgage cost?  Calculate and compare mortgage payments online with the mortgage calculator. Simply manipulate any of the variables including loan amount, interest rate, down payment and term to calculate different scenarios.

It’s very important to remember that the total cost of home ownership is never just the mortgage payment however. From property taxes, home insurance to general maintenance the actual cost of owning a home can often be 50% or more on top of your mortgage payment. Learn more about buying a home and how to save money on your next mortgage by reading the topics below.

How much does to cost to buy a home?

Many first time home buyers believe the cost of buying a home is simply the down payment and some closing cost fees and while they may be technically right the true cost of home ownership is far greater. Buying a home is quite possibly the biggest financial responsibility most families take on and before committing to a mortgage loan for 30 years! It would be a very good idea to consider the full cost of owning a home. Home ownership is not just about paying a mortgage but also about maintaining the home, furnishing the home, paying property taxes, utilities and more.

Property Taxes

Homeowners in America are obligated to pay an annual property tax according to a percentage of the assessed value of the home. This is vastly different than some countries where you simply pay a one-time tax upon title transfer. Depending on where you live property taxes can equal up to 2% or more of your property value. This may not sound like much but it certainly is. For example, in some Florida counties, if your property value is $500,000 then you have to pay almost $10,000 annually just in real estate tax. That’s over $800 a month – before you even make a mortgage payment!

Home Insurance

Homeowners insurance is widely available but even with such a competitive market this doesn’t mean it’s cheap. There are different types of home insurance including flood insurance, hazard insurance and more. While many homeowners simply have a general house insurance policy some are obligated to purchase special types of insurance depending where the property is located. What happens if you don’t want it? The mortgage company will often buy it on your behalf and then bill you up to 3 times the cost or more, citing they had to buy it from some kind of unique provider… which they probably own. Home insurance is not optional if you have a mortgage so it’s important to include this in your budget.

Cable, Utilities and Stuff

Those little things which make life easier add up pretty quick once you become a homeowner. Living with your parents or renting an apartment can have its advantages and one of those is often the inclusion of such bills. When you grow up and live on your own there is no imaginary credit card that pays these bills.

Home Furnishings

Buying your first home is a great feeling but as soon as you open the door it’s easy to become overwhelmed. For some people all their prior belongings can fit in the spare bedroom which means you have a big empty to space to buy stuff for. Shopping at IKEA and Home Depot will actually end up being exciting but this is the time when you will need cash. Stretching every last dollar to just buy the home and make the mortgage payment doesn’t do a lot for your lifestyle … unless you think eating dinner on the floor is cool.

There are ups and downs to every real estate transaction and buying a home is certainly a great investment long term but you do need to have a sound financial plan in place. No one wants to end up being house poor; it just is never as fun.