Salt Lake City Mortgage Calculator
Use this calculator to find the monthly payment that is comfortable for your financial situation. It is important to include your property taxes, property insurance, and private mortgage insurance in the calculation to see the full monthly obligation for a mortgage Salt Lake City UT (or any other city in the state of Utah).
We use several simple calculations to qualify for you for a mortgage Salt Lake City UT (or any other city in the state of Utah) that are easy to do with a standard calculator.
Calculate your Debt To Income (DTI) by dividing the house payment by your gross pay or before taxes are taken out of your monthly income. Example; $1,500 / $6,000 = .25 or 25%, this is your housing expense calculation or your “top” DTI number.
To get your “bottom” DTI number or your total Debt To Income calculation simply add the monthly minimum payments showing on your credit report to the house payment and repeat the calculation. Example; car – $235, credit card – $80, student loans (estimate payment if deferred) $110 gives a total of $425.00. $425.00 + $1,500.00 = $1,925.00. $1,925 / $6,000 = .32 or 32%, your DTI is 25 over 32%.
FREE CONSULTATION: Call me and I’ll be happy to quickly run all these calculations for you.
This calculation is one of the main qualifiers for a Salt Lake City mortgage (or a mortgage loan in any other city in Utah). Most lenders like to see a bottom number of less than 41 to 45% but can exceed these numbers in certain situations if there are strong compensating factors such as a large savings or retirement accounts.
The term or number of years you have to repay the mortgage Salt Lake (or home loan in any other city in Utah) can increase or decrease your monthly payment but a shorter term loan can also save you thousands of dollars. The sooner you can pay off your Salt Lake City mortgage the more money you will save in interest paid, and the sooner you will become financially sound.
For instance, a 15 year mortgage Salt Lake loan will save you more than half the interest you would typically pay on a 30 year mortgage. Mortgage terms are set in 5 year increments up to a 30 year loan.
The Private Mortgage Insurance (PMI) rate is different for each mortgage scenario. The higher the Loan To Value (LTV) the higher the rate. Rates range from .0110% down to about .0042% of the loan amount.
Use this example to get a monthly mortgage insurance payment. Example; loan amount of $200,000 x .0085 / 12 = $141.67 per month in PMI.
FREE CONSULTATION: Call me today at (801) 381-5757 for a free no obligation consultation and I’ll do the all this math for you.