Michigan Mortgage Calculator

How to Use the Michigan Mortgage Calculator

Using the Michigan Mortgage Calculator is straightforward and can help you estimate your monthly mortgage payments, including principal, interest, taxes, insurance, and PMI. Follow this guide to understand how to input information and what each field represents.

Step 1: Prepare Your Information

Before using the calculator, gather necessary information such as the home purchase price, down payment amount, interest rate, loan term, property tax rate, home insurance premium, and PMI rate (if applicable).

Step 2: Enter the Home Purchase Price

In the Home Purchase Price ($) field, enter the total price you plan to pay for the home. The amount should be between $1,000 and $100,000,000. This field is required.

Step 3: Input the Down Payment Amount

Enter the down payment amount you intend to pay upfront in the Down Payment ($) field. The amount should be at least $0. This field is required.

Step 4: Specify the Interest Rate

In the Annual Interest Rate (%) field, input the annual interest rate of your loan. The rate must be between 0.01% and 30%, in steps of 0.01%. This entry is required.

Step 5: Choose the Loan Term

Select the loan term from the available options in the Loan Term dropdown menu. You can choose between 15, 20, or 30 years. Selection is mandatory.

Step 6: Enter the Property Tax Rate

Input the annual property tax rate in the Annual Property Tax Rate (%) field. The rate should be between 0% and 5%, with increments of 0.01%. This field is required. You can use the average Michigan rate of 1.54% as a reference.

Step 7: Provide the Home Insurance Cost

Input the annual home insurance premium in the Annual Home Insurance ($) field. Enter an amount of $0 or more. This entry is required.

Step 8: Specify the PMI Rate (if applicable)

If your down payment is less than 20%, enter the PMI rate in the PMI Rate (%) field. The rate should be between 0% and 5%, in steps of 0.01%. This field is optional and should be left blank if not applicable.

Step 9: Review the Calculated Results

After entering all required data, the calculator will automatically compute and display the following results:

• Loan Amount: The amount financed after subtracting the down payment.
• Down Payment Percentage: The percentage of the purchase price represented by your down payment.
• Monthly Principal & Interest: The monthly payment covering both principal and interest.
• Monthly Property Tax: The monthly portion dedicated to property tax.
• Monthly Insurance: The monthly portion of the home insurance premium.
• Monthly PMI: The monthly PMI payment, only applicable if the down payment is less than 20%.
• Total Monthly Payment: The total of all monthly mortgage-related costs.
• Total Payment Over Loan Term: The complete amount paid over the entire loan term.

With this step-by-step guidance, you can effectively use the Michigan Mortgage Calculator to estimate your potential mortgage responsibilities and payments.