Question:

For a loan of $350,000 at 7.25% for 30 year fixed rate mortgage – how much is my total mortgage payment?

Answer:

To calculate your total mortgage payment, there is other information beside loan amount, rate and term that are necessary. For example, discount points, property taxes and how much you are paying for PMI and homeowners insurance are also important when calculating total mortgage payment.

Total Mortgage Payment for a Loan with LTV over 80%

If you are buying a $400,000 house and contributing $50,000 for a down payment your mortgage loan LTV will be 88%. With a loan balance of $350,000 at 7.25%, no points, for 30 years you will be paying approximately $3100 a month.

Total Mortgage Payment for 88% LTV, $350,000 loan at 7.25% for 30 years
Principal and Interest $2,387.62
Estimated Property Taxes (monthly) $453.33
Homeowners Insurance (monthly) $80.00
Private Mortgage Insurance (PMI) $151.67
Total Mortgage Payment $3,072.62

This is an expensive loan. To cut the total mortgage payment, you may have to wait until your score could qualify you for better rates. This rate is not so prime. If you are doing stated income, perhaps you can go full doc and get a better rate. Or, wait a little bit and your PMI payment will be cancelled and the total mortgage payment will drop with $150.

However, if you get the same loan for 40 years, you will be saving only $20/month and if you get it at 6.25% you will be paying $230/month less.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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