Mortgage Payment Per Thousand Dollars

Is there an easy way to estimate my mortgage payment by using a number multiplied by per thousand dollars in house value?

1 Answer

Yes there is an easy way to estimate a mortgage payment. To calculate the principle and interest you take the sales price and minus the down payment to equal the loan amount. Take the loan amount and divide it by 1000 then muliply by the rate factor below then add the taxes and insurance. Taxes and insurance will vary state by state, county by county and locally. I originate loans in Northern Virginia and use 1% of the sales price for taxes. For Hazard Insurance I use $700 for the annual premium.

If you are putting less than 20% down you will also need to add mortgage insurance. at 85.01% to 90% loan to value the factor is .62% of the loan amount divided by 12 or you can add .500% to the interest rate to eliminate monthly mortgage insurance. For 80.01% to 85% loan to value the MI factor is 38% or ad .250% to rate. The mortgage insurance factor can be reduced with excellent credit scores or increased with lower credit scores. 

Sales Price - Down Payment = Loan Amount

(Loan Amout / 1000) * Factors Below

Add Taxes, Insurance and PMI if necessary (read above)

30yr Fixed Rate Rate      /   Factor 5.500%  /  5.68

5.750%  /  5.84

6.000%  /  6.00

6.250%  /  6.16

6.500%  /  6.32