Mortgages & Financing

[tkbuds]

Hi,

Do the Montly Payment Estimates on the listings include applicable HOA fees?

[Phil McCarty]

Hi tkbuds,

No, the monthly payment estimate on our website include principal and interest only (your mortgage payment). You should also take into account property tax and insurance, as well as HOA fee if the home is located within a Homeowner association.

In California, you can estimate your annual property tax by multiplying the purchase price by 1.25%. Dividing that figure by twelve to get the monthly cost. To estimate annual insurance cost, multipy the purchase price by 0.25%. You can check the listing detail to see if there is an HOA fee (if there is your insurance cost will likely be less because you will need less insurance).

By the way, you can change the assumptions on the estimated monthly payment by clicking on the figure.

[mellerbrock]

No they do not. It is principal and interest. It also does not include taxes and insurance, since they can vary from city to city.

[Ken Krauter]

Good Morning:

You also need to consider the impact of the TYPE of mortgage you secure, FHA vs. Conventional, and/or the amount of your downpayment.

An FHA mortgage, or a Conventional mortgage with a down-payment below 20%, will most likely have the additional expense of Private Mortgage Insurance (PMI) each month.  PMI will also impact your closing costs as well...

Thanks for your post,

KenK

[Lisa-Marie Lindberg]

Good morning tkbuds!

When you make your HOA payments, depends on the home you purchase. 

Here in the Houston area when your purchasing a condo or town home they usually collect payments monthly (paid to your HOA seperately from your mortgage payment) but if you purchase a single family house typically they collect payments annually (paid to HOA seperately from your mortgage payment).  This is a great question to ask your agent about each of the properties your considering.

The new Bank of America calculator at the bottom of our listings is pretty close to what you can expect for a monthly payment since it takes into account (roughly) what we call PITI (principal owed on your loan, interest on your loan, property taxes, and homeowner's insurance) as mentioned by the others.  Some people choose not to include their taxes and insurance in their monthly payment as well so you would need to talk to your lender and agent about your individual options!

[Din Khaled]

This is a little confusing and they are working on to get this calculation better, as I heard last.

One of the easiest way to do this is $6.75 payment/1000.00 of purchase price.  This is a # for MD area.  This is close and a lot of time a little cheaper.  Consult a loan officer ask for a better formula that works in your area.

Also - look at our website take ONLY Principal & Interest,  after you enter the purchase price.

Then add the following to that  -----/month.

1.  Yearly tax / 12 = -----/Month

2.  Month fee / Month =  -----/Month

3.  Yearly Insurance for the property / 12 =  -----/Month

4.  If you are not putting down 20%, then add additional:   Base loan amount * 0.55% /12 =  -----/Month  (Mortgage Insurance)

Yap - lot of work.  Ask a BOA loan officer and they are always helpful =)

[tkbuds · Accepted solution]

Thanks everyone!  This is really great information.