TEXAS FIVE STAR REALTY

Info@TexasFiveStarRealty.com

 
214-457-7055

 

 

Texas Real Estate Commission Information About Brokerage Services                       Texas Real Estate Commission Consumer Protection Notice

Dallas homes for sale, Plano homes for sale, Frisco homes for sale, Prosper homes for sale, Allen homes for sale, McKinney homes for sale, Murphy homes for sale, Celina homes for sale, homes for sale

Home

About Us Buyers Sellers Investors Commercial Relocation Contact Us Lenders Inspectors Titles
Builders Vendors PlaceHolder
Search Properties
Find Your Home's Value
Local Market Snapshots
Local Real Estate Trends
National Market News
Foreclosure vs. Short Sale
Dallas FW City Directories
Dallas FW School Ratings
Dallas FW City Tax Rates
Estimate Closing Cost
Mortgage Calculator
Mortgage Amortization
Green Tax Credit
Types of Loans
Relocation to Texas
Customers vs Clients
Repair Cost vs Value
Rent vs Buy Calculator
Your First Home?
My Blogs
Testimonials
Test Your R. E Knowledge
  Property Management
Open House Manager Tool

How much is the Mortgage Payment compare to the value of the house or the Loan on the Property?

 Moving furnitures   0.75%?       0.85%?        

Home buyers and real estate investors who want to purchase their property often wonder how much their Monthly Mortgage Payment would be. Of course, the best way to find this is to hire a REALTOR® or a Lender who has the knowledge, expertise, access to the required data & tools, and necessary programs to come up with the most accurate number for the specific property.


Disclaimer: Disclaimer
This article contains “rule of thumb” numbers that show the relationship between the values of the house vs. the total Mortgage Monthly Payment.  Please note that this is an estimate rule of thumb, is not an exact value, not to be used as legal advice or in a contract. This estimate should only be used as a guideline.

 

The Mortgage Monthly Payment depends on many factors such as:

Purchase price,
Down payment,
Interest Rate,
Term of the loan (e.g., 30-year fixed, 15-year fixed, ARM, etc.),
Type of the loan (e.g., FHA, VA, Conventional, etc),
Up Front and Mortgage Insurance Premium (e.g., FHA UPMIP and MIP, Points and PMI in Conventional),
Homeowner Association Fee (HOA),
Property Tax (e.g., City, County, School Taxes),
Hazard Insurance,
Flood Insurance (if any),

etc.

 

Based on several sets of assumptions, considering all factors shown above applicable to the range of prices, I calculated each and every item shown above as well as the Total Monthly Mortgage Payment. Please see Monthly_Payment_vs_Loan.pdf  for all detail calculations and all scenarios.

Please feel free to use Monthly_Payment.asp to calculate and determine all the above items and this ratio based on your specific data set.

 

A summary of this result, based on the following set of assumptions shown below shown in Table 1.

:

Assumptions:
Down payment,         = 20%
Interest Rate,             = 4.5%
Term of the loan       = 30-year fixed,
Type of the loan       =  FHA
FHA UPMIP              = 1.75%

FHA MIP,                   = 1.20%


HOA Fee (HOA),      = Ranges from $0 – to $75 per Month
Property Tax Rate    = 2.1883% for every $100  
Hazard Insurance,    = Ranges from $800 – to $2200 per Year,

Depending on the value of the house

 

 

Table 1: 20% Down Payment, FHA 30-year Fixed Rate of 4.5%
 

$ Purchase Price

$Loan Amount

Total Monthly Mortgage Payment

Ratio of the Monthly Payment to Loan

Ratio of the

Monthly Payment to the value of the House

$120,000

$ 96,000

$741.51

0.9041 %

0.7233% à 0.73%

$170,000

$136,000

$1,235

0.9082 %

0.7265% à 0.73%

$220,000

$176,000

$1,652

0.9388 %

0.7415% à 0.74%

$280,000

$224,000

$2,086

0.9314 %

0.7451% à 0.74%

 

 

$Purchase Price

Ratio of the Monthly Payment to the value of the House

$ OR the Value

100% Down

25% Down

20% Down

10% Down

5% Down

3.50% Down

$120,000

0.24%

0.62%

0.73%

0.78%

0.81%

0.83%

$170,000

0.24%

0.62%

0.73%

0.78%

0.81%

0.83%

$220,000

0.26%

0.64%

0.75%

0.81%

0.84%

0.85%

$280,000

0.26%

0.64%

0.75%

0.81%

0.84%

0.85%

               

 


As you can see in the above Table, I have concluded that the monthly mortgage amount is directly related to the home’s loan value and home prices, for a given loan type and loan term.

 

A good "rule of thumb" for home buyers and investors to estimate the total monthly mortgage payment, at least in Collin County, is the 0.75% factor. For example, if your property is worth between $220,000-$280,000, which is the most common range of values in Frisco, you could estimate its’ mortgage payment to be about 0.9% of its loan amount (assuming 20% down) or to be 0.75 % of the value of the house.

 

Another example if the value of a property is $220,000 or less, the Monthly Mortgage Payment for the property should be about 0.73% of the market value of the property (assuming 20% down)

 

Please feel free to use Monthly_Payment.asp to calculate and determine all the above items and this ratio based on your specific data set.

Contact us about your Financing Questions

Equal Housing Opportunity Commission Bahman Davani REALTOR

Bahman Davani, CM
Broker/REALTOR®
ABR, GRI, CDPE, SFR,
TAHS, eAgentC, and
CCIM Candidate

Office: (214) 457-7055
Cell: (214) 457-7055
Fax: (972) 596-7984

P.O. Box 261665
Plano, TX 75026-1665

Contact Form

First Name Required*

Last Name
 

Email Address Required*
 

Phone Number
 

Comments/Questions


Enter the code above                  

Texas Five Star Realty
P.O. Box 261665
Plano
, TX 75026 US
Phone: 214-457-7055
Website: www.texasfivestarrealty.com/
Follow ME button from AddThis
Follow US:

Share, Pin and LIKE This Page:
    Share this page in Facebook 

My Blogs:
Subscribe to Bahman Davani Blogs RSS See Bahman Davani Blogs See Bahman Davani Blogs in ActiveRain See Bahman Davani Blogs in WordPress Texas-Five-Star-Realty-Manta-Badge See Bahman Davani Blogs in SlideShare See Bahman Davani Blogs in Zillow   See Bahman Davani Blogs in Klout See Bahman Davani Blogs in Plaxo See Bahman Davani Blogs in Blogger

My Real Estate Designations and Certifications:
Bahman Davani REALTOR Bahman Davani Commercial REALTOR Bahman Davani ABR Designation Bahman Davani GRI Designation Bahman Davani CDPE Designation Bahman Davani SFR Shortsale Forecolsure Resource Certification Bahman Davani TAHS Texas Affordable Housing Specialist Certification Bahman Davani Inbound Marketing Certification Bahman Davani Certified Manager from Institute Certified Professional Managers Bahman Davani eAgentC Internet Profficiency Certification Bahman Davani NMLS RMLO Residential Mortgage Loan Originator License Bahman Davani TRLP Texas Real Estate Leadership Program Graduation Send Texas Five Star Realty Text via email

Additional Resources and Newsletters:
Texas Five Star Realty website Mortgage News Daily from Texas Five Star Realty website Bahman Davani Credit Score Tips and Tricks book published by Texas Five Star Realty Bahman Davani Credit Score Tips and Tricks book published by Texas Five Star Realty          


. Copyright 2011-2014 Texas Five Star Realty Web Site Developed by We provide a fast and easy solution for your business. .