What is the best way to estimate a mortgage payment?
I’ve seen so many mortgage calculators but when I called a bank to get pre-approved the payments were way higher. I got pre approved but here’s the numbers: House is 299,000. Taxes are 5,900. Insurance 1300 a year. Mortgage rate is 5.25 for fixed 30 year. If i put down 15k I would expect a payment around 2100 a month give or take a hundred bucks according to almost all online calculators. My bank said my payment woud be closer to 2500. This does not inlcude closing costs (I planned to pay them right away) Am I missing something or is my bank trying to screw me because I make good money and have good credit?
wg0z posted: 21 Aug at 5:29 pm
hard to say. what did you estimate for PMI? you’ll need it. some of the online tools dont account for everything. try a few other on-line calculators and/or mortage brokers.
Quicken Loans posted: 21 Aug at 6:12 pm
A lot of mortgage calculators could have assumptions in the fine print – which is why the two estimates are off. I doubt the mortgage company is trying to screw you, they use a pretty standard equation for every person.
The taxes are something that’s determined by the city you’re in – they are property taxes the bank is collecting from you in an escrow to pay the city. Closing costs are paid upon closing, they have nothing to do with monthly payments anyways.
If the numbers seem off to you, I would call the bank, and have them explain each cost, and then compare it against the assumptions on one of the mortgage calculators. It’s normal for the mortgage calculators to be less accurate because it’s not customized to your situation as much.
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