#downpayment

Use the free California Mortgage Calculator to estimate your monthly payment, including taxes, mortgage insurance, principal, and interest.

A mortgage calculator helps in calculating things in a few minutes. Buying a new home is a time of dreams and opportunity, but navigating the mortgage process can also make it stressful and confusing. Different interest rates and repayment terms can make it difficult to compare mortgage loan offers.

Our mortgage calculator should help you understand everything. This helpful tool makes it easy to find mortgage loans and choose the best deal for you.

How to Use This Calculator:

Our mortgage calculator can help you understand how differences in interest rates and repayment terms affect the size of your monthly payment and the total cost of a home over time. Little information is required to get started. Adding a few more details using the calculator's optional advanced options can give you an even clearer idea of ​​what your monthly mortgage payment might look like for different loans.

- House Price: This is the amount you pay the house seller. If you are in the early stages of home shopping, use the seller's asking price for comparison, but remember that this number is negotiable. If you are shopping in a highly competitive market and expect to be one of several bidders, you may want to bid above the asking price. In slower markets or for properties that have been on the market for a longer period of time, a bid below the asking price could be successful. Work with a real estate professional/ Mortgage Advisor to set your bidding strategy.

- Down Payment: When you enter the house price, the calculator automatically fills in the Down Payment field to reflect 20% of the house price. This is the standard down payment required for most traditional mortgages. Many mortgage lenders, including those who make government-backed loans, will accept lower down payments, usually in exchange for higher interest rates and/or fees - and with the stipulation that you pay for mortgage insurance, which you can factor into the calculator's advanced features.

- Term (in years): Enter the number of years required for the mortgage to be repaid. By default, this calculator assumes a 30-year mortgage, as this is the most common home loan term in America. Other standard mortgage terms include 15 years, 20 years, and 40 years. Adjust this number according to the offer you are evaluating. All things being equal, longer mortgage terms mean lower monthly payments, but also significantly higher interest costs over the life of the loan.

Still Think You Need 15-20% Down to Buy a Home? Think Again!

You have multiple options available to make it easy to buy a home without a large down-payment. 

According to a new study from Urban Institute, there are over 19 million millennials in 31 cities who are not only ready and willing to become homeowners, but are able to as well!

Now that the largest generation since baby boomers has aged into prime homebuying age, there will no doubt be an uptick in the national homeownership rate. The study from Urban Institute revealed that nearly a quarter of this generation has the credit and income needed to purchase a home.

Surprisingly, the largest share of mortgage-ready millennials lives in expensive coastal cities. These cities often attract highly skilled workers who demand higher salaries for their expertise.

So, what’s holding these mortgage-ready millennials back from buying?

Myths About Down Payment Requirements!

Most of the millennials surveyed for the study believe that they need at least a 15% down payment in order to buy a home when, in reality, the median down payment in the US in 2017 was just 5%, and many programs are available for even lower down payments!

The study goes on to point out that:

“Despite limited awareness, every state has programs that provide grants and loans to make homeownership more attainable, with average assistance in various states ranging from $2,436 to $21,171.”

Bottom Line

With so many young families now able to buy a home in today’s market, the demand for housing will continue for years to come. If you are one of the many millennials who have questions about their ability to buy in today’s market, let’s get together so we can assist you along your journey!

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