Another question I have ever since I started thinking of buying a home, also the one I am mostly frequently asked is "How much can I afford"? well, $500k, $800k or $1M sounds like an unreachable number. How much do I really have to pay on a monthly basis?
This is when the mortgage calculator comes in handy. It is on the lower right hand side of
this page:
- Total Amount: Type in the house price you are thinking of
- Interest Rate: The annual interest rate of your mortgage (maybe around 5% now for excellent credit scores and over 20% down payment)
- Down Payment: How much you are paying down right now (typically 20% of the house price are recommended)
- Loan Term: How long you are going to pay for the loan (30 or 15 years, mostly 30 years)
Fill in these information and then click on "Calculate", the calculator will then tell you how much you have to pay per month. For example, for a $600k house, 5% interest rate and $150k down, 30-yr mortgage monthly payment is $2415.96. Don't you feel much better now? Just keep in mind this has not included closing cost, etc, which will be relatively small.
Questions or comments? Email cahomebuyer@gmail.com or Visit
CA Home Buyer
