Free Mortgage Calculator
BMC Keystone Mortgage provides this free mortgage calculator to help you understand the total cost of your mortgage and give you a general idea of what your monthly mortgage payments might be. This free mortgage calculator is just a tool, you should consult with a licensed mortgage professional like BMC Keystone Mortgage to get advise on how much you can reasonably afford to borrow, and which types of loans will give you the most favorable rates and terms.
Understanding the Different Loan Programs
Understanding the Loan Process
Mortgage payment typical costs
The principal and the interest are the main cost components. The principal is the amount you borrowed, while the interest is the sum you pay the lender for borrowing it. Your lender also might collect an extra amount every month to put into escrow, money that the lender then typically pays directly to the local property tax collector and to your insurance carrier.
- Principal: This is the amount you borrowed from the lender.
- Interest: This is what the lender charges you to lend you the money. Interest rates are expressed as an annual percentage.
- Property taxes: Local authorities assess an annual tax on your property. If you have an escrow account, you pay about one-twelfth of your annual tax bill with each monthly mortgage payment.
- Homeowners insurance: Your insurance policy can cover damage and financial losses from fire, storms, theft, a tree falling on your home and other hazards. If you live in a flood zone, you'll have an additional policy, and if you're in Hurricane Alley or earthquake country, you might have a third insurance policy. As with property taxes, you pay one-twelfth of your annual insurance premium each month, and your lender or servicer pays the premium when it's due.
- Mortgage insurance: Commonly known as PMI. If your down payment is less than 20 percent of the home's purchase price, you'll probably need mortgage insurance, which also is added to your monthly payment.