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Homebuyer's Mortgage Calculator

How much will my monthly mortgage payment be?  How much house can I afford?  How do I estimate my payment? Regardless of what you've heard or seen on the internet, take a minute here to educate yourself with the facts regarding mortgage payments.  We want you to be comfortable with your decisions and be happy 5 years from now.  Many homeowners that ARE in financial trouble right now, would NOT be if they were armed with the information you are about to read on this very page! 

How many times have you seen ads that say... Get a $250,000 mortgage for $750 a month!


I don't think so.  Ok, maybe if you put 30% in a down payment, got an adjustable rate mortgage (not a good idea), and did not include your property tax or insurance in that amount.  Don't be fooled!  You will never get blind-sided if you are well-informed and know what to expect in your transaction.

1. Start with the sales price of the house and subtract the amount you will be putting down in cash. Normally, the minimum down payment amount will be 3.5%.  (This does NOT include closing costs.) Example: $250,000 - $8,750 = $241,250 mortgage amount.  Take your mortgage amount and plug it into the mortgage calculator provided below.  In this example it is $241,250.  The calculator will ask you for the mortgage amount, the term (# of years-typical is 30 yrs) and the interest rate.  If you are not sure of the approximate interest rate in your case, then contact us or a reputable mortgage officer for help and a pre-approval based on your situation.

Contact Michele Creech with Cardinal Financial.

 Named one of the top loan officers by D Magazine




2. The result of this calculation will give your payment amount based on principle & interest.  But you're not done yet. The monthly mortgage payment is made up of 4 elements 1.Principle 2.Interest 3.Taxes 4.Insurance.  This is commonly known in the industry as PITI.  Estimating taxes and insurance will be based on a specific property and will vary from property to property depending on its size, type, age and location.  We can help you with this estimate, but for example we'll use a property tax rate of 2.7% annually and an annual insurance amount of $1,500.  On a property value of $250,000 at at rate of 2.7%= $6,750 per year.  This equates to $562.50 a month for taxes and $125 a month for insurance. ($1,500/12=$125)

3. Let's add up what we have so far...A $250,000 house minus 3.5% down = a $241,250 mortgage

Plug that into the loan calculator below (and let's assume a 30 year note at 5% interest)= $1,295 (principle & interest).  Take the $1,295 and add $562.50 in taxes and $125 in insurance = $1,982.50 a month.

One more thing to factor into your payment...

4. Private Mortgage Insurance (or PMI) - This is a fee charged by mortgage companies to buyers that put less than 20% down payment on a home.  With 3.5% down and a mortgage amount of $241,250, your monthly PMI will be approximately $180.  So, $1,982.50 plus $180 = $2,162.50 a month TOTAL.

Hey, but that website said my payment for $250,000 would be only $750 a month?!

No! No it won't. They just want you to call them.  We want you to know the truth up front.



Mortgage Calculator


Allen Robison

4136 S. Carrier Pkwy., Ste 540
Grand Prairie, Texas, 75052
United States

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