I am already living in my home and need to calculate how much my interest rate need to be in order to get my payments at a certain amount that I can afford to see if it makes sense to get a loan modification or just walk away from my home. Would be great if it incorporates how much the term can be extended also.
What's the additional cost that needs to be figured into a home loan calculator other than then actual payment?
The mortgage company said they would give me a 7% interest rate, not bad considering my credit is shot. So I punch that into a amortization calculator and get a payment on a $75,000 house at $498.98. Yet, the broker said my payment would be about $705. What else are they figuring in to the payment? What formula or numbers are the lenders using to give me the rough number? How can I figure the taxes, insurance, etc cost myself so I can get a better number on paper to build my budget around?
Like they say the extra is the property taxes and the homeowners insurance. The actual figure for property taxes will depend on which house you buy. If you already have it picked out you can look up the real figure and the lender can actually help you do that. The homeowners insurance depends on your credit (believe it or not) and the size, age, condition and location of the house. It also depends on what kind of coverage you want, how large a deduct able you want, and if you also have your car insurance thru the same company. Shop around and ask a few companies for quotes. But your lender is probably just guessing right now and one guess might be as good as another.
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