Mortgage Calculators are not Always Complete
A basic mortgage calculator is good to determine your mortgage, but remember that there are other monthly costs to consider trying to determine your monthly payment.
Private Mortgage Insurance (PMI). If you are putting less than 20% down, you will be required to pay PMI, which tends to be about $55 per month for every $100,000 financed (until you pay down 20% of your loan).
Taxes as Home Owners Insurance. The average residential tax rate, plus home owners insurance (sometimes referred to as hazard insurance) usually ranges from $7 to $10 per year for every $1,000 of your property’s assessed value.
Notice we calculate ALL these things when referring to a Monthly Payment. We error on the conservative side to make sure there are no surprises at closing.
It seems lately that most financial experts are suggesting people keep their mortgage payment somewhere between 25% and 35% of their income. RedSign agents suggest trying to stay below 30% since you’ll want to have more discretionary income to pay for all the fun activities to do in Utah. So after you use our affordability calculator, you can start searching Utah homes for sale knowing that you have a max limit to what your budget should allow.
An easy way to get a good idea on payment is talk to a lender. They can give you the best, closest monthly payment amount. To get a good guess, you can search for homes and click the Payment Calculator next the the price on any listing on our site.