Our Mortgage Calculator For Your Monthly
Mortgage Payment Estimate
NOTE: To avoid confusion, we chose a calculator that calculates PI payments. (Principal and Interest only.) Please add additional monthly costs for taxes, insurance, and any association fees. If you have questions, feel free to contact us.
CALCULATING A MORTGAGE PAYMENT
Using the Mortgage Calculator
Our Mortgage Calculator is a great tool for getting a ballpark estimate of your loan payment, but only for the principal and interest. For an accurate house payment estimate, if you have the interest rate calculated now for your loan program, it’ll be spot-on.
After determining the principal and interest payment, you’ll need to add taxes, insurance, and possibly mortgage insurance to the full payment amount. However, you probably need more information for taxes and insurance. Read below for how we estimate taxes and insurance for our clients.
WHAT ARE PITI PAYMENTS?
About Your Payment
P is for Principal
Principal– Principal refers to the Loan Amount. Sales price minus down payment. **Add the VA Funding fee if applicable.
I is for Interest Rate
Interest– When the Feds say what the current interest rate is, that’s not necessarily what a home loan interest rate is. Interest rates vary based on your loan type, loan amount, credit, job history, down payment, and the lender. Get a quote from your home loan lender or use a ballpark number, knowing that it will change. We can refer you to several excellent lenders.
T Is For Property Tax
Property Tax- To calculate property tax in Southern Nevada, we use the Rule of Thumb to guesstimate “Under 1% of the purchase price of your home” if we don’t have the exact address. You can do an exact address search on the Clark County website’s Assessors Page. In 2013, the entire valley was reassessed, and a 3% annual increase cap was applied to owner-occupants, and a 6% cap to investment properties. This means a 10-year-old house could pay half the taxes that a new home of equal value would pay.
Instead of reassessing each property every 4 years, as the Clark County Tax Assessor’s office used to do, Voters chose to cap tax increases at 3% per year for owner-occupied homes and 6% for investment properties. Property Tax does not change when a property transfers to the new homeowner. The good news is that this law became effective in the mid-2000’s when prices and value were considerably lower than they are now.
County Property Tax Rates
Clark County has 111 different tax district line items. Las Vegas, Henderson, N. Las Vegas, Boulder City, Mt. Charleston, and Pahrump all have different tax rates, and many line items are applicable to one property. Tax rates for each district are based on how much money is budgeted for government-provided services, such as schools, police, fire, parks, and libraries, and for capital projects, such as flood control and transportation. The LV, NLV, and Henderson full rate chart is available on the Clark County Treasurer’s website. If you know the address of a property, you can learn the exact tax on their website.
The Second I is for Insurance
Home Loans have two types of insurance: Homeowner’s Insurance and, when you put less than 20% down on a property, Mortgage Insurance.
Homeowner’s Insurance
Your homeowner’s insurance covers the building, most contents, and liability, so every lender requires you to have it to protect their investment. If the loan-to-value ratio is less than 80%, the lender will also require mortgage insurance. In the Las Vegas Valley, the Homeowner’s Insurance cost will usually be around $1000 a year, so divide your guess by 12. Factors for the Cost of Homeowner’s Insurance include:
- value of structure
- square footage
- lot size
- area of town
- age of home
- swimming pool and/or spa
- security system
- type of fireplace
- your credit score
- if you have past insurance claims
- the limits you choose for the policy
- additional coverages
- owner-occupied
- investment property
- multiple-policy discount
Please note: Nevada’s property insurance rates have increased to reflect natural disasters nationwide. Rates have recently become an unknown factor.
Mortgage Insurance
