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Buying your first home can be exciting but daunting. An Omaha mortgage calculator can help simplify the somewhat complex world of home financing. You’ll input the price of the home you’re considering or have already bid on, your anticipated down payment amount, your loan term, interest rate, and property tax rate. The calculator will quickly tell you what your monthly payment would be, plus the total interest costs and all-in costs of your loan. Ready to get started? Learn how to best use the calculator here.
Key Points
• Using an Omaha mortgage calculator can help homebuyers estimate monthly payments and overall affordability.
• Down payment assistance programs can significantly reduce the upfront costs of purchasing a home, making it more accessible for first-time homebuyers.
• A shorter loan term, such as 15 years, can result in higher monthly payments but less total interest paid over the life of the loan compared to a 30-year term.
• Your credit score plays a crucial role in determining your mortgage interest rate, with higher scores often leading to more favorable rates and lower costs.
• Property tax is often paid through the monthly mortgage bill and so is included in this calculator.
• Home price: The home price is the purchase price you have agreed to with the home seller (or the price you think you can get if you haven’t yet placed a bid).
• Down payment: The down payment is the amount paid upfront. Most buyers put down between 3% and 20%, with a 20% down payment helping them to avoid private mortgage insurance (PMI). If you require a jumbo loan for a higher-priced property, a 10% down payment may be required.
• Loan term: The loan term is the length of time you have to repay the home loan. A shorter term can result in higher monthly payments but less interest paid over the life of the loan. Conversely, a longer term can lower monthly payments but increase the total interest.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. A higher credit score can help you secure a more favorable interest rate. The type of mortgage loan you choose and its term will also affect your rate.
• Annual property tax: Property tax is often paid as part of a mortgage payment. In Douglas County, where Omaha is located, the average property tax rate is 1.747%. For your property’s specific rate, search the ZIP code or county name and “effective property tax rate.”
• Total monthly payment: The total monthly payment includes the principal and interest. In this calculator it also includes property taxes, as many lenders like to see homebuyers pay their taxes as part of their loan payment (it ensures that the payments are made promptly).
• Total interest paid: The total interest paid is the amount of interest you will pay over the life of the loan.
• Total loan cost: The total loan cost is the all-in amount you will pay for the loan, including the principal and interest.
How to Use the Omaha Mortgage Calculator
Step 1: Enter Your Home Price
Type in the agreed-upon purchase price of the property.
Step 2: Select a Down Payment Amount
Choose how much of the home price you will pay upfront. A down payment calculator can show you what’s needed to reach the 20% payment necessary to avoid PMI.
Step 3: Choose a Loan Term
Select the length of time to repay the mortgage, anywhere from 10 to 30 years. A longer term lowers monthly payments but increases total interest.
Step 4: Enter an Interest Rate
Input your estimated interest rate to the second or third decimal point. Lower rates reduce monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Enter the percentage of your property’s market value for annual property tax. For the specific percentage in your area, search online for the property’s town or ZIP code and “effective property tax rate.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator is a useful tool for estimating your monthly mortgage payments and understanding the true cost of homeownership. If you’re buying your first home and haven’t had a mortgage before, running different scenarios in a mortgage calculator can help you understand how the down payment amount and loan term affect costs.
Deciding How Much House You Can Afford in Omaha
To afford a median-priced Omaha home, which comes in at $280,000, you would need an annual salary of about $88,000. How did we get there? Using the Omaha mortgage calculator we assumed a down payment of 20% and a 30-year loan with an interest rate of 7.00% The monthly payment, with Omaha property taxes, comes to $1,898. Lenders like it if your monthly mortgage payment doesn’t exceed 28% of your gross income — hence the salary number. This assumes you aren’t paying off other debts. If you have a car payment or student loan, for example, you would need to earn more.
A second way to go about determining your house budget is to use a home affordability calculator, which takes your income and debts into account to arrive at an ideal home price. If you’re getting serious about buying, go through the mortgage preapproval process to really firm up your budget. A lender will comb through your qualifications and tell you if you might be approved for a loan and, if so, how much you could borrow.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Components of a Mortgage Payment
The main components of a mortgage payment are principal and interest. The principal is the portion of the payment that goes toward paying down the loan balance, while the interest is the cost of borrowing the money. Additionally, your monthly payment may include property tax, which is typically divided into monthly installments and added to your mortgage. If your down payment is less than 20%, you may also need to pay for PMI. Home insurance and homeowners association (HOA) fees are also sometimes factored into the loan payment.
If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), use an FHA mortgage calculator, which takes into consideration both the loan’s upfront and ongoing mortgage insurance premiums. A VA mortgage calculator is your best bet if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
The Cost of Living in Omaha
The cost of living significantly impacts your budget when you’re buying a home, and higher-cost areas tend to have higher home prices but also higher costs for utilities, transportation, health care, and more. The overall cost of living in Omaha is significantly less than the average cost of living in the U.S. It’s no surprise then, that Omaha landed on a list of the best affordable places in the U.S. Here’s a closer look at how Omaha’s costs rank on a scale where the U.S. average equals 100.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Omaha’s First-Time Homebuyer Assistance Programs
If you’re buying your first home in Omaha, there’s a down payment assistance program available to help cover the initial costs involved. The Nebraska Investment Finance Authority’s Homebuyer Assistance Program provides two mortgages that, together, can allow eligible buyers to purchase a home with just $1,000 down. Other programs help buyers in certain counties or provide aid to active members of the military who are also first-time homebuyers in Nebraska.
After you buy a home in Omaha, there are still ways to lower your monthly mortgage payment. Consider these options.
• Consider a mortgage recast. You’ll make a lump-sum payment toward the principal, and request that the lender recalculate your monthly payments based on the new, lower balance.
• Ask the lender to drop PMI as soon as you reach 20% equity in your home. This can be achieved through regular payments or home appreciation, so monitor your home’s value and periodically do the math to figure out if you’ve hit 20%.
• If you believe your property taxes are too high, you have the right to appeal your assessment. If you’re successful, you may be able to lower your tax bill. (If you aren’t successful, however, you risk a higher assessment.)
• If you are experiencing financial hardship, you can ask your lender to modify your loan. This adjustment can make your monthly payments more manageable and less burdensome, though it might result in increased interest costs over the long haul.
• To potentially reduce your monthly mortgage payment, take the time to shop around for a lower homeowners insurance rate.
The Takeaway
Using an Omaha mortgage calculator can provide valuable insights into the potential cost of a home. By understanding how your down payment amount, interest rate, and loan term affect your monthly payments, you can better plan for your homebuying journey and choose the mortgage that feels right for you.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
The amount you should put down on a mortgage depends on your financial situation and the type of loan you choose. A larger down payment can lower your monthly payments and eliminate the need for private mortgage insurance (PMI). However, if you’re a first-time homebuyer, you might consider down payment assistance programs that can help you cover the initial costs with a smaller down payment.
Should I choose a 30-year or 15-year mortgage term?
A 30-year term offers lower monthly payments, making homeownership more accessible. A 15-year term could save you thousands of dollars in interest but will require a higher monthly payment. If you can make a 15-year or 20-year term work with your budget, go for it. But particularly if this is your first home purchase, don’t feel bad about locking in 30 years. It is, after all, the most popular mortgage term in the U.S.
How can I get a lower mortgage interest rate?
To get a lower mortgage interest rate, start by improving your credit score, as lenders often offer better rates to borrowers with scores over 700. Shop around for different lenders to compare their interest rate offers. Prepaying mortgage points, which are upfront fees paid to the lender, can also lower your interest rate. Look carefully at adjustable-rate vs. fixed-rate loan offers to determine whether going with an adjustable rate might provide a lower introductory rate without too much risk of rates rising later on.
Can I afford a $500K house on a $100K salary?
A home affordability calculator shows that it’s unlikely that you could afford a $500,000 home on a $100,000 annual salary. A comfortable purchase budget for you would be in the neighborhood of $360,000. If you put down a 20% down payment on a $500,000 house, your monthly loan payment would be around $2,500 which would be a stretch on a $100,000 salary.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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