Here's an easy way to estimate
your monthly mortgage payment on either a 15-year or 30-year loan. This
gives you the principle and interest amount payment only.
Keep in mind that property taxes and insurance must be
paid in addition and a lender will take this into consideration when
determining your maximum loan amount.
Also, there may be Homeowner Association fees and
Mello-Roos assessments (Mello-Roos assessments are created when a
builder passes along the cost of streets, lights sewer, etc to the
homeowner, usually charged on your property tax bill, and are in
addition to the property taxes). These fees vary from development to
California property taxes are based on 1% of the
purchase price (plus some small amount for schools, etc), usually ending
up about 1.2%. Property purchased at $150,000 would be assessed at
approximately $1,800 for the first year.
Estimate of monthly principle and interest payment.
Locate the current interest rate and look under the column for either
15-year or 30-year rates. Multiply that figure by the number of
thousands of dollars of loan amount (i.e. if you are borrowing $185,000,
you multiply by 185)
Interest rate: 7.75%
Loan term: 30 years
Loan amount: $185,000
185 X $7.16 = $1,324.60
Estimated monthly payment $1,324.60