How do you calculate your home loan repayments?
first, easiest A way to calculate your mortgage payments is to use a mortgage calculator like the Georgia Mortgage Calculator included in this article. Calculators like this do the heavy lifting for you, so there aren’t many situations where you’ll need to manually calculate your mortgage payments. That said, if you’re into the math, or just want to know where the payment came from, I can walk you through the process.
Calculating a mortgage payment involves three variables: the principal, the interest rate, and the number of mortgage payments.
This is the amount you originally borrowed when you got your mortgage, or the home sale price minus your mortgage. down paymentAlso, if you plan to incorporate closing costs or lender fees into the principal amount, as is often the case with loan refinancings and especially FHA mortgages, be sure to include those as well.
interest rate (r)
your loan interest ratebut expressed above monthly Basic. To find your interest rate, convert the loan interest rate (not the APR) to a decimal number and divide by 12. For example, if the mortgage rate is 4.5%, divide 0.045 by 12. Find 0.00375.
number of payments (n)
The number of scheduled monthly loan payments. For 30 and 15 year mortgages, this is 360 and 180 months respectively. If you have another loan term, simply multiply the number of years by 12.
Putting it all together, the formula for calculating mortgage payments is:
Also, keep in mind that this formula only calculates your mortgage principal and interest payments, and that’s most likely not the only thing you need to pay each month. Specifically, most lenders require the buyer to pay a prorated amount of monthly taxes and required insurance in addition to the mortgage payment. private mortgage insurance, or PMI. To add these, take your most recent property tax bill and premium and divide each by 12 to calculate the amount you need to add. Also, if you’re buying a home and want to get a quote for your own home, property tax bills can usually be found on the county’s website and your local insurance agent can help you estimate the premium. There is a possibility that it will come.
Things to know before buying a house in Georgia
While this article focuses on mortgage payments, it’s important to keep a few other things in mind before buying a home in Georgia.
Georgia Property Tax
The average Georgia homeowner pays 0.92% of the home price in annual property taxes. This means that a typical Georgia property tax bill for a $300,000 home is approximately $2,760 annually.
When it comes to homeowners insurance, Georgia’s average premium rate is slightly above the national average as a percentage of home value. It’s also important to note that this can vary greatly depending on the geographic location of the property. If you are buying a home in a coastal area, you may also need to purchase flood insurance.
credit and income requirements
Before applying for a mortgage, we recommend checking to see if you are eligible.must meet the minimum credit score criteria At least 620 for traditional loans and 580 for FHA mortgages, regardless of the type of loan you apply for. You should also have enough income to justify the loan and a stable work history.
Are you planning to buy a second home or investment property in Georgia, or do you want the ability to list it on Airbnb or a similar platform when you’re not at home? If so, local regulations governing short-term rentals Please be sure to check Many homeowners associations have outright banned short-term rentals, and it’s not uncommon for entire cities to significantly restrict rentals, especially in touristy areas.
learn more: homebuyer checklist
Tips for First Time Home Buyers in Georgia
Georgia Homeownership Assistance Program
Like many other states, Georgia has program Helps first-time homeowners make home ownership accessible. Specifically, the Georgia Dream Homeownership Program partners with lenders to provide eligible buyers with traditional her FHA, USDA, or VA loans. First-time homebuyers, homebuyers who have not owned a home in the last three years, or homebuyers in certain areas of the state may qualify.
How to get qualification
Buyers must have a household income below the threshold, liquidity no greater than $20,000 or 20% of the home value (whichever is higher), and meet lender credit requirements. Homes must be under $275,000 or $325,000, depending on the county, but given the recent surge in home prices, it’s no surprise that these limits will be raised in the coming years.
As of April 1, 2021, buyer If you qualify for the program, you will receive a $7,500 down payment assistance. Additionally, police, firefighters, healthcare workers, and educators, as well as purchasers with family members with disabilities, can receive up to $10,000. Buyers must donate a minimum of $1,000 toward the purchase of a home. Down payment assistance is structured as an interest-free loan with no payments. Homebuyers don’t have to pay anything back until they sell their home or refinance their mortgage.
Still have questions?
Here are some other questions answered so far: