How to Calculate Mortgage Payments With Taxes
When you buy a home it is important to calculate the monthly mortgage payment. However, there are additional expenses that come with every home, like property taxes. If you already know the property tax amount, it is easy to figure out your total payment. It is a simple case of dividing the taxes by 12 and adding to your total mortgage payment for the month.
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Instructions
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Ask your real estate agent for last year's property tax amount on the home in question. This information is usually listed on the home's sales sheet or in the agent's MLS database. If you do not have an agent yet, estimate the property taxes at 1.5 percent of the home's value. It is a reasonable average for property taxes.
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Calculate the monthly mortgage payments using a mortgage calculator (see Resources). Just enter the home price, interest rate and loan term, then click submit.
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Divide the total taxes for the year by 12 using a calculator. This is the amount you will pay for taxes per month.
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Add the monthly mortgage payment and the amount you will pay toward taxes each month.
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Tips & Warnings
Property tax rates for each county are public information. Contact the county tax collector in the county the home is located for an exact tax rate. More often than not, your real estate agent will have the exact tax amount.
Tax rates change every year based on the value of the home. If home prices rise, your tax rate may also rise.
References
Resources
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