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Mortgage Calculator Taxes - Finding a Good Mortgage Calculator That Calculates Taxes

enter term of mortgage enter interest rate enter loan amount enter annual tax amount enter yearly insurance amount

When you’re trying to calculate expenses and costs of buying or owning a house, property taxes come into play. In fact, they are part of the PITI – Principle, Interest, Taxes, Insurance. The latter are a group of expense figures used to calculate the potential profitability of a real estate investment or simply to see how much it will cost to buy and own a house or property. The principle and interest payments on a mortgage, along with property taxes and home insurance payments give a good overall picture of the monthly expenses of owning a house. It shows whether or not an investment in a house can be profitable – the profit would be any income made on the property such as rentals to tenants, appreciation, or simply income from selling the house.
Mortgage calculators are programs or online utilities that automatically calculate specifics regarding mortgage payments. They tell, for instance, what the monthly payment will be given a certain mortgage term, interest rate, and loan balance. But a good mortgage calculator will do more than this. It will make calculations about taxes on the house as well and may include other costs. When using such a mortgage calculator, taxes are automatically taken into consideration as an added monthly expense. These calculators may also include monthly insurance expenses. Thus the cover the entire set of PITI expenses.
Such a mortgage calculator with taxes included may be set up as follows:

Enter Term of Mortgage

You first enter the term of the mortgage. This is the number of years you have in which to pay back the mortgage. Mortgage terms can vary from 5 years to 30 years or more. This will have a direct impact on how much money you have to pay each month. Realize that if you choose a longer term mortgage, the monthly rates will be lower, but the total amount that you have to pay back increases due to the interest. People need to find the right balance between total repayment amount and what they can afford each month.

Enter Interest Rate

The next piece of information that needs to be entered is the interest rate on your mortgage. This can be either simple or compound interest. The figure that is normally entered in this field of the mortgage calculator is the APR, the annual percentage rate. This is the overall interest your will pay on the principal during one year. There may be a few different factors that affect this, so you should check with your lender before entering this figure to make sure it is correct. In general though, it is one simple interest rate applied to the balance, so if you know that number you can go ahead and enter it.

Enter Loan Amount

Loan amount is the same as the principal. It is the amount you originally borrowed. This amount is entered so the mortgage calculator for taxes can make its calculations as to how much you will owe monthly.

Enter Annual Tax Amount

You next need to enter the amount you will pay in taxes on a yearly basis. Again, this may be something you should double check. You can check with the IRS and/or state government to get a sense of how much you will owe in yearly taxes. Chances are if you’ve gone to the trouble of buying a house, you already have a pretty good idea of what this number is. Enter it. This is the mortgage calculator with taxes as an added feature will thus add in the monthly tax payment amount.

Enter Yearly Insurance Amount

Finally, enter is the yearly insurance amount. This is a very easy number to get from the insurance company that you have selected. And again, chances are you will already know this amount.

Once all these numbers are entered, the mortgage calculator with taxes and insurance included simply adds them all together and arrives at a monthly payment amount. There’s no great mystery to it. You could do the same thing quite easily on paper or with an ordinary calculator and get the same result. But using a free online mortgage calculator can make things more convenient and easy to organize. These calculators are set up to emphasize that it is not only a mortgage payment that you have to be responsible for each month, but the taxes and insurance as well. The PITI is nearly always what determines the total amount you will have to pay each month for house or property ownership.
If you want to clarify what your total monthly house related payments will be, mortgage calculators that include taxes and insurance are helpful. You need to be very realistic as to what you can afford when buying a house, and these free online programs are designed to make realistic and comprehensive calculation of your expenses clearer and more straightforward.

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over 2 years ago

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