Chimponomics Mortgage Calculator Help

Chimponomics Mortgage Calculator helps you calculate monthly mortgage payment, including principal, interest, home insurance, property tax, and HOA fees. The monthly payment amount is based on various inputs by users such as the value of the home, down payment amount, mortgage loan type, and interest rate; and other default values such as home insurance, property tax, private mortgage insurance or PMI, and HOA fee, if any. You can adjust any value based on your personal situation and get a more accurate monthly payment estimate. The calculator also provides a loan amortization table outlining the amount of principal and interest that you pay each month towards your loan.

Down payment:

This is the amount of money you put towards a down payment on the house. Down payment is usually calculated as a percentage of the home price. It can be as low as 3%, depending on the loan products and your personal eligibility. By default, the calculator sets it at 20%, but you can change it accordingly to your personal plan. When deciding on down payment amount, make sure you still have cash left for other unexpected repairs and expenses, or closing costs if you choose to pay closing costs separately.

Interest rate:

This is the interest rate for the loan you will receive. It depends on the loan type that you choose and your personal financial situation. It is default to 4% on the calculator, but you can change it to fit with your personal situation. Interest rate changes on almost daily basis due to various factors. When pre-approved for a mortgage loan at a certain interest rate, make sure to ask lenders to have your interest rate locked for a particular period, usually 45 or 60 days. Target to close your mortgage loan within the locked period to avoid it changing.

Property taxes:

The Chimponomics mortgage calculator includes estimated property taxes. This is the amount that homeowners are taxed on their properties. It is dependent on the property’s value and the local specific requirements. The calculator defaults property taxes at 1.25% annually. The (previous) owner of the home that you purchased or intend to purchase should be able to advise you how much she/he paid for the property taxes in the previous year. That is the good reference for your future property taxes.

Homeowners insurance:

Most lenders require insurance to provide damage protection for your home and personal property from a variety of unexpected events such as fire, lighting, burglary, vandalism, storms, explosions, and more. It is dependent on the home value, home location, and homeowners’ personal situation. The amount that the (previous) owner of the home you purchased or intend to purchase paid for is a good reference for your future home insurance.

Private Mortgage Insurance: (PMI)

Private mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home price. It protects lenders against most losses that can occur when a borrower default on a mortgage loan. Depending on loan types, mortgage insurance can no longer be required when 20% of the home price have been paid off through monthly mortgage payment.

Homeowners Association fees (or HOA fees):

Usually required for condo or townhouse owners to pay homeowners association dues, or HOA fees, to cover common amenities or services within the property such as garbage collection, landscaping, pool maintenance, and hazard insurance. Each condo or townhouse property requires a different amount. Be sure to check with your real estate agent the HOA fees before making your decision.