488 Norristown Rd,

Suite 241 Blue Bell, PA 19422

I’m Jeff James, welcome!

October 16, 2019

488 Norristown Rd,

Suite 241 Blue Bell, PA 19422

Mortgage Loan Calculator

Using a reliable Mortgage Loan Calculator is a very good way to see how your monthly payments may stack up against your budget.  Typically, there are 5 components of a monthly mortgage payment.  The components of a monthly mortgage payment described below assume you are “escrowing taxes and insurance”.

  1. Your Principle and Interest (or “P&I” is comprised of the monthly amount you will pay toward paying down your mortgage, plus the interest on the loan for the forthcoming month.
  2. Your homeowner’s insurance can be escrowed with your monthly mortgage payment. This means, you pay the insurance premium over 12 months and your mortgage company pays the insurance provider when the bill is due.
  3. Your School and Property taxes can also be escrowed as part of your mortgage payment. Similar to your homeowner’s insurance, these tax payments are made in equal amounts over 12 months and then paid to the respective tax collector by your mortgage servicer.
  4. Mortgage insurance is a monthly insurance you pay with your mortgage payment that protects the mortgage lender from losing money on the sale of your home, in the event you “sell short” or abandon the property. You will sometimes hear the term referred to as “PMI”.
  5. Homeowner’s association (or “HOA”) dues are not paid with your mortgage payment, but they are used as part of the calculation towards your total monthly payment. HOA dues only apply to communities where an association collects dues for services provided to its residents.  These payments are typically paid directly to the association.

Understanding the makeup of your monthly mortgage payments will help you considerably in determining a purchase and loan type that are right for you!  If you have questions about how to calculate your payments, hit us up on the <chat line>.

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