How to Calculate Monthly Mortgage Payment

Here’s a quick guide on how to estimate your monthly mortgage.

Explanation on Mortgage Insurance and Taxes at the bottom.

Go to EddieGamez.com and look up the daily interest rates. These are the national average, not my rates, but they are still good for estimation.
- Estimate Borrowers Credit Score:
  - 700+ = Conventional
  - Under 700 = FHA
- Take the average rate for the day

Go to my calculator page https://eddiegamez1.floify.com/
Enter Info
- Down payment
  - FHA = 3.5% minimum (most down payment assistance programs are FHA)
  - Conventional = 3% minimum for first time buyer, 5% for second time buyer
- Property Taxes = estimate 2.5% if you don’t know what area and just need a general estimate.
- Homeowners Insurance = Over $350k purchase price, use $125. Over $450k purchase, use $150.

So far you, probably know how to do all of this. But next we need to add in mortgage insurance (unless you are at 80% LTV)

FHA – mortgage insurance if you are putting 3.5% down is .55%
Conventional – its all over the place, depending on credit score, LTV, DTI, and a couple of other factors. We wont know that until we have their file. But for an estimate, you can use .5.

Take the MI rate, .5 /100 = .005. Multiply .005 x loan amount $346,750 = $1,733.75. Divide that number by 12 = $144.47. This is a general estimate for mortgage insurance for this loan. Again, this could be much lower or much higher.

Now, if you have a specific area in mind, and we need to get an accurate tax rate, go to the central appraisal district for whichever county the property is in – https://traviscad.org/propertysearch, and look up the property.

This page will usually display the tax units for the area that this property is located in. Tavis county is a little different. You have to click this little print button on top.

Add the taxing units (tax rate column) together = 2.035847. Divide this number by 100 = .02035847. The multiply that number by the Market Value shown in the Central Appraisal District website. .02035847 x $325,648 = 6,629.69. This is your updated annual tax rate. This is still an estimate, but a much more accurate estimate.

Now you have the updated monthly payment with more accurate tax information, in your calculator. Add the $144.47+$3,042 = $3,186.47 and this is an pretty close estimate.

If you’d like to get a more detailed tutorial about how to do this, I’m happy to jump on a video call and explain. If its too much math or confusing, I’m happy to do it for you.

Have a great day and let me know if there is anything else you’d like to know.

Schedule a call with me here.