Real Estate
How To Calculate a Mortgage Payment Estimate

In 2021, the real estate market was dominated by people paying cash for their new properties. In fact, nearly one-third of all homes purchased last year were secured through cash-only transactions.
What’s catalyzing the move? Experts point toward the uptick in at-home, remote office positions that has allowed homebuyers to work from anywhere. As a result of this switch, they’re selling their more expensive homes in cities like New York and San Francisco and paying cash for a less-expensive home elsewhere.
Unless you plan to join these ranks, you can expect a mortgage payment when you buy your next house.
What is a mortgage, why do you have one, and how can you estimate what you’ll need to pay? Read on for the answers you need to know.
Table of Contents
What Is a Mortgage?
A mortgage is a type of personal loan used to purchase or maintain one of the following properties:
- Home
- Land
- Another type of real estate
Banks and credit unions distribute mortgages to qualified individuals. Before you can enjoy access to your money, you will need to pass a verification process to prove that you’re financially stable. Much of this process revolves around your credit score.
A majority of credit scores hover between 300 to 850. The higher your score, the more financially responsible you will appear to a bank. A few of the factors that can affect your credit score include:
- Your bill-paying history
- Your current debt load
- The number of loan accounts you have open
- How long those accounts have been open
- Any new applications for credit
Once your bank reviews your application and credit score, they will issue you the mortgage. When you sign the loan agreement, you will confirm your intent to pay the lender back over a set period of time. You will do so by paying a set amount each month for the duration of your loan.
Principal and Interest
Mortgage payments include two important numbers that you need to know: principal and interest. Principal refers to the amount of money that you originally agreed to pay back. Interest is an extra amount added to the principal each month, as a fee for borrowing the money.
Different lending institutions will have their own interest rates, and there isn’t a one-size-fits-all percentage to know. This is how some banks compete with one another. If they can offer competitive, low-interest financing then they can appeal to a greater number of interested buyers.
However, be wary about banks that offer ultra-low interest rates. They might have very short repayment terms or other stipulations that you need to understand before moving forward.
Total Monthly Payment
When you review your mortgage bill each month, you may be confused to find that your principal and interest payment doesn’t precisely line up with the total monthly payment amount.
In most cases, the total monthly payment will be the higher of the two. This is because this number includes a few other expenses, such as:
- Homeowner’s insurance
- Taxes held in escrow
- Mortgage insurance (if applicable)
Note that if you live in a condo or a co-op, you may have additional fees included in your total monthly payment. These are usually set by your local homeowner’s association or HOA. The HOA is responsible for maintaining the grounds that a shared property sits on, enforcing community regulations, and managing the day-to-day activity of the neighborhood.
Analyzing Your Mortgage Payment
When you see your mortgage payment each month, you might focus on the total monthly payment amount. However, it’s important to understand this number relative to your local region.
In some areas, your mortgage will be high simply because the homes in your region are desirable. There may be a great-scoring school district, access to local shops and restaurants, and enjoyable recreation areas nearby.
Before you assume that yours is extra-high, you’ll need to know all of the factors that go into it. Next, let’s take a look at how your lender arrives at that number, and what those inputs mean.
Loan Amount
First, you’ll see the loan amount, also called the principal. This is the price you paid to purchase your home, minus the amount of the down payment.
A down payment is what you pay at the time of purchasing your home. Most lenders require it to be at least 20% of the home’s total sale price. If you cannot meet that figure, then you may be required to pay private mortgage insurance (PMI).
Banks charge PMI to protect themselves from defaulting on the loan in the event that you cannot pay your mortgage back in full over the agreed-upon timeline.
Annual Interest Rate
As mentioned, the interest rate is the fee that your lender charges to maintain the loan. If you see the term APR, this stands for Annual Percentage Rate. The APR and your monthly interest rate will vary slightly.
Loan Repayment Terms
This is the number of years that you have to pay back the loan.
While a longer-term loan might have a lower interest rate, be aware that this isn’t always the best. You could easily wind up spending more money with this type of loan, as you’ll continue to pay interest over the course of the mortgage contract.
Payments Per Year
This is the number of mortgage payments that you will make each year. If you are making monthly payments, then this number should be 12.
Type of Mortgage Loan
Next, you will see the type of mortgage loan that you have. There are a few different options, including:
- Adjustable
- Fixed-rate
- Interest-only
An experienced real estate professional can help you navigate all of the different mortgage options and suggest one that would be a good fit for your needs. This way, you can have an idea of what you require before you meet with a lender. If you live in Chicago, click the following link to connect with a qualified local team.
Other Factors
Other factors that may affect your monthly mortgage payment include the market value of your home, as well as your monthly income. Your lending agent will walk you through all of the individual expenses that you can expect.
Make sure to read all of these terms and conditions carefully before signing on the dotted line. Setting up a mortgage is one of the most substantial financial decisions you will make in your life, and you don’t want to rush into this process.
Calculating Your Mortgage Payment
When you’re ready to calculate mortgage payments, start by reviewing the exact type of loan that you have. Most loans are traditional, fixed-rate loans.
For example, you may have a 30-year mortgage or a 15-year mortgage. This means that the timeline will not change, and you can expect to pay the same amount each month. By the time you’ve reached the end of the term, you should have your loan paid back in full.
It might look complicated, but you can use the formula below to calculate your mortgage payment for a fixed-rate loan:
- P x (r / n) x (1 + r / n)^n(t)] / (1 + r / n)^n(t) – 1
Here’s a breakdown of what these letters mean:
- P: Principal
- r: Annual interest rate
- n: Number of payments per year
- t: Number of years that you have to repay the loan
Don’t feel like crunching those numbers yourself? You can also use an online mortgage payment calculator to get the job done in a matter of seconds! We recommend going this route over performing your own calculations, simply because the risk of human error is so high.
A Note on Affordability
When you meet with a lender, they may approve you for a mortgage that’s way higher than you originally thought you would qualify to receive. While it’s easy to get stars in your eyes and think about how much house that money could buy you, we urge you to exercise caution.
Just because you’re approved for a high loan doesn’t mean you should necessarily take it. Make sure that you earn enough money to comfortably make those monthly payments. If you don’t, then you could wind up defaulting on your loan.
This can render you ineligible to receive a mortgage loan down the road, so it’s definitely a mistake you don’t want to make.
Calculate Your Mortgage and Find Your Home
Knowing how to calculate your mortgage payment is part of becoming a responsible homeowner. While you can use the formula listed above, it’s usually easiest to trust the calculation to an automatic online calculator!
Yet, don’t enter your numbers and be done. Take the time to understand all of the factors that go into your mortgage, and look for ways to stay financially smart as you move forward. Then, you will be able to enjoy your home without draining your pockets.
Looking for tips to help you make the most of your new residence? Check out our Home Decor guides!
Home Decor
5 Common Home Inspection Mistakes and How to Avoid Them

You’re about to go into contract. You’re only a few weeks away from closing on the house, so you’ve been checking out any problems that you can find with it. You’ve had a home inspector check out the house by now.
You need to know common home inspection mistakes to avoid these problems before you close on the house. Let’s look into some common mistakes that homeowners make.
Table of Contents
1. Hiring an Unqualified Home Inspector
One of the most common mistakes during a home inspection is not bringing in a professional. Many people try to save money by performing their own inspection or hiring someone who is not qualified. This is a huge mistake in home inspection process that can end up costing a lot more money in the long run.
You can check out the qualifications of the inspectors from Guardian Inspections to find out more about these qualifications.
2. Not Being Present During the Home Inspection
Another common mistake is not being present during the inspection. It is important to be present so that you can ask questions and understand what is being reported.
Make sure to get a written report. A written report will provide a detailed account of the condition of the home and any potential issues.
3. Failing to Understand the Home Inspection Report
A home inspection report is a critical document that can help you avoid making common mistakes when purchasing a home. However, many people fail to understand the report and what it means. To avoid making mistakes when interpreting your home inspection report, make sure you understand the inspection process and what the inspector is looking for.
Pay attention to the details in the report, including any photos or diagrams. Lastly, if you have any questions about the report, be sure to ask the inspector for clarification.
4. Relying on the Home Inspector
Relying on the home inspector to find everything is not a good idea. The home inspector is not responsible for finding everything that is wrong with the home, but they will do their best to identify any major problems.
It is important to remember that the home inspector is not a magician, and they cannot see everything. It is always best to follow up with a licensed contractor.
5. Thinking the Home Inspection is a Pass/Fail Test
The reality is that the home inspection is simply an opportunity for the buyer to learn more about the condition of the property before making a final decision. While the inspector may identify some minor defects, it is important to remember that most homes are not perfect.
The key is to focus on the major defects that could potentially impact the safety, structural integrity, or value of the home. If the buyer is not comfortable with the condition of the home, they should walk away from the deal.
Avoid These Common Home Inspection Mistakes
Although a home inspection is not required when buying a home, it is highly recommended. Hiring a professional inspector to check for structural damage, cracks, leaks, pests, and other common problems can save you from costly repairs down the road. There are a few common home inspection mistakes people make, but by following a few simple tips, you can avoid them and have a successful inspection.
Looking for other great articles about a variety of topics? Then make sure to check out the rest of our blog and know more!
Real Estate
The Different Types of Lawn Grass: Which Is Best?

About 81% of American homeowners have a lawn. Most of them say that lawn features are essential when buying or renting.
Since the quality of your lawn impacts how your home will look, how it will act as a filter between you and your neighbor, and how your kids will enjoy running around it, you need to make sure that you get the best possible grass for the type of lawn you have.
But what types of lawn grass enhance different styles of lawns? Please keep reading for some of our favorites you should consider.
Table of Contents
Warm-Season Types of Lawn Grass
Warm-season grasses are typically found in southern states, as they can better tolerate the heat and humidity. Some common types of warm-season grass include Bermuda, zoysia, and St. Augustine grass. Here are some things you need to know:
Bermuda Grass
It is a warm-season grass that is native to Africa and Asia. Bermuda grass is a tough grass that can tolerate heat and drought.
Bermuda grass is also good grass for areas that are susceptible to wildfires.
Zoysia Grass
Zoysia grass is a warm-season grass known for its thick, lush turf. It is famous for those who want a beautiful lawn without much maintenance.
Those who live in cooler climates may find that this grass does not survive the winter months. Those with allergies may also want to avoid this type of grass, which can cause respiratory problems.
St. Augustine Grass
St. Augustine grass is a warm-season grass common in the southern United States. It is a medium to coarse-textured grass that forms a thick, dense turf.
It is a low-maintenance grass that is tolerant of shade and salt. It is also resistant to insects and diseases.
Cold-Season Types of Lawn Grass
The most popular are tall fescue, perennial ryegrass, and Kentucky bluegrass. Each type has its benefits and drawbacks, so you’ll need to choose the right one for your lawn. Here are some things to know:
Tall Fescue
Tall fescue is a very tough grass that can withstand a lot of wear and tear. It makes it a good choice for areas that are likely to be used a lot, such as play areas for children. Tall fescue is also a very drought-resistant grass, so it is a good choice for areas that do not receive a lot of rainfall.
On the downside, tall fescue can be a high-maintenance grass, and it may require more fertilizer and water than other types of grass. Talk to a local expert like RDS Lawn Care to find out more about how to improve your lawn health and for landscaping services.
Perennial Ryegrass
It is famous for homeowners with pets or children who play outside often. Perennial ryegrass is also a low-maintenance grass, so it does not require much attention in watering or mowing.
Kentucky Bluegrass
It is a cool-season grass that is native to Europe and Asia. It is a perennial grass that can grow up to 2 feet tall. It has a deep root system that helps it tolerate drought and heat.
The Right Grass Can Give You a Better Lawn
There are many different types of lawn grass available on the market today. Deciding which one is best for your needs cannot be evident. By researching and understanding your lawn’s needs, you can make the best decision for your grass.
Be sure to get lawn care tips from a professional to get the best results for your lawn.
Visit our blog for our latest articles!
Real Estate
Know How Solar Installation Can Be a Great Return on Investment Plan

Solar packages have become the buzzword in today’s world. Everybody has heard of solar and knows that it can help save the environment. Installing solar panels in homes is safe, smart, and an inexpensive way to generate electricity.
To make the most of solar panels, you should know about the advantages of solar panels and how installing them can be a great return on investment plan. This article will take you through the reasons why solar panels are a good investment.
Table of Contents
Why Installing Solar Panels is a Good Investment?
Going green is the only way to a sustainable future. But that is not the only benefit of installing solar panels in your home. Here are the most significant reasons why solar panels are a great investment: —
-
Environmental Benefits
If you install solar panels in your house, you are not only benefiting monetarily, but you are also helping save the environment. You are contributing to a greener future by reducing your carbon footprint.
-
Financial Benefits
With a solar panel system installed in your house, you will be able to generate your own electricity to power up your home. Even if you cannot produce 100% of the energy required, solar panels will help you reduce your bills and help save a lot of money. If you get confused at any point, you can seek guidance from the company’s experts to reap the maximum benefits.
-
Energy Backup
With the rise in global warming and increased atmospheric temperatures, the environment is degrading every day. Due to the sudden breakdown of electricity, there can be huge losses. But if you have solar panels installed in your home, you will have the energy backup which will protect you from such interruptions.
-
Utility Credits
Uses that have grid-tied solar systems can receive credits for sending electricity back to the utility grid. They can use these credits to reduce their energy bills.
-
Increased Value of Property
By installing a solar panel system in your home, the value of the property will increase by a margin of 3 to 4 %. The homes which have solar panels installed have higher prices and sell quickly.
-
Tax Benefits
People who invest in solar panels are eligible to avail of some of the tax benefits during a financial year. The income generated from the production of solar energy is tax-exempt.
-
Fixed Costs
Your monthly electricity bill may differ as per the seasons. It might be less in winters and higher in summers when the ACs are running. But if you have a solar panel system installed in your home, you will have a fixed electricity cost to pay every month if you are tied to the grid.
Installing solar panels may be expensive, but it is just a one-time cost, and the return on investment is much higher. You will recover your investment in a few years. In addition to it, it’s also a decision you would have to make once in a decade. Once the solar panel system is installed in your house, all you need is insurance and yearly maintenance of the panels. However, solar panels do not require heavy maintenance. So, you can be rest assured that you are saving yourself from the hassle and the maintenance costs. If you are planning to go solar, you can consider buying solar products from a reputed brand like Luminous. They offer a stellar range of quality solar products at affordable prices.
-
Gaming1 year ago
What is FitGirl Repacks (Official), How To Download & Install PC Games
-
Biography1 year ago
Pierce Brosnan Wife Weight Loss 2020: Here’s How Keely Shaye Smith Lost Weight
-
Celebrity11 months ago
Becki Falwell Nude Story: Check Out The Sizzling Details Of The Scandal
-
Biography11 months ago
Nakoa-Wolf Manakauapo Namakaeha Momoa – Bio, Facts, Family Life of Jason Momoa
-
Lifestyle2 years ago
43 Things You Don’t Know About Alexis Bledel
-
Celebrity2 years ago
Billionaire Matchmaker Anna Bey Explains The 5 Types of Men You Should Avoid Dating
-
Biography2 years ago
Alaina Marie Mathers Bio, Age, Family, Net Worth and Facts
-
Biography11 months ago
From Professional To Personal: Suzanne Somers Nude And More