704 W. Beebe Capps Expwy.
Searcy, Arkansas 72143
(501) 268-8489 Direct
(877) 527-7948 Toll Free
(501) 278-7659 Cell or Text
How Much Will My Payments Be?
With the low interest rates of today, you will find out that you may be able to afford more of a home than you thought. You can enter the loan amount (let's say list price for now), the interest rate and how many years then click on the calculate button to find out how much your principal and interest part of your payment will be.
You will have to add mortgage insurance premium (if any), 1/12 of your home owners insurance and 1/12 of your annual property taxes to figure your total payment.
(Hint: If you are wanting a certain payment, let's say $750 per month total, this will include prinicpal, interest, taxes and insurance. I usually figure $100 per month is for taxes and insurance (that will be $600 per year for taxes and $600 per year for insurance, if they are different, then apply accordingly), that will leave you $650 per month for principal and interest. Now enter $1,000 for the loan amount above, then the current interest rate (let's say 3.25%) and let's use 30 years for the term. When you hit calculate, you should have $4.35 for your monthly payment. Now, use a calculator and enter the amount of your remianing payment ($650 example above) and divide it by the monthly payment for the $1,000 ($4.35). This will give you 149.43 (650 / 4.35 = 149.43). Then multiply that number by 1,000 (149.43 * 1,000 = 149,430.00) So, for a monthly payment of $750, using the number above, you can look at property in the $149,000 range!)
© 2000 - Larry DeGroat, Realty Professionals, Inc.
Licensed Real Estate Agent in the State of Arkansas