Property taxes and insurance can vary depending upon the property's location.
For example, a property located in Los Angeles County, California will have a property tax rate of 1.25 % versus other counties that may be more or less than this rate.
Another example could be the property's insurance premium. Good news is that you get to choose your own insurance company! You have an advantage to shop around to find the best rates possible.
We always advise getting 3 quotes. Be sure that all quotes are equal as far as deductibles, replacement cost, personal property and other structures when comparing. Be aware that other factors can also affect your premium such as the property's location, ie in a flood zone, high fire zone... well, you get the picture!
Also, if your are not placing a minimum of 20% down payment toward your purchase and your loan to value is greater than 80%, your lender will require a mortgage insurance premium that will also be added to your monthly payment.
Time to fill out the calculator!
The down payment will be the amount of total cash you will be placing as the down payment. This is not just your deposit money when you made the offer, but rather the deposit plus the additional amount due at close indicated on your sales contract.
The loan term is typically 30 years.
The interest rate is the rate that your bank or mortgage broker has quoted you. Remember to always get 3 quotes! Do not have your credit run yet if possible and absolutely do not have it run multiple times! This will drop your credit score and could adversely affect your loan or approval.
Contact us if you'd like as we can explain this further in detail.
There is a small fee ($10.00 per written answer to questions or advice). It is well worth how much you will save by being armed with knowledge!