How to Use the New York Jumbo Loan Calculator

Deciding How Much House You Can Afford in New York

The average home value in New York is more than $500,000. In New York City, that figure increases to more than $800,000. Lenders suggest that mortgage payments should not exceed 28% of your gross monthly income. So to afford a $1 million home, you would need an annual income of approximately $250,000, assuming a 10% down payment, a 30-year mortgage, and a 6.75% interest rate. This results in a monthly payment of about $5,837 before property taxes and insurance.

Lenders also recommended keeping total debt payments within 36% of gross monthly income. In the example above, if your debts exceed about $1,600 a month — think about student loans, credit cards, and car payments — the income needed for a $900,000 mortgage would be higher.

Mortgage preapproval can clarify your maximum mortgage, simplifying the homebuying process. Though, only you can say what a comfortable budget is, based on your assets, lifestyle, and financial goals.

Recommended: Jumbo Loan Requirements

Components of a Jumbo Loan Payment

Jumbo home loan payments consist of principal and interest. The principal is the amount borrowed, and the interest is the cost of borrowing that amount.

Other components include property tax — which is included in our calculator — as well as homeowners insurance and homeowners association (HOA) fees. Knowing how these expenses factor in gives you a clearer view of your overall financial commitment and helps you prepare for the true costs of homeownership.

Cost of Living in New York

The cost of living significantly impacts home affordability. New York’s cost of living index is 126.6, according to MERIC, which is almost 27% above the national average of 100. Housing costs are almost 79% higher, so factor this into affordability calculations.

Beyond the mortgage, consider utilities, transportation, and groceries. In New York, these are 4%, 6%, and 3% higher, respectively. If your mortgage stretches your budget, added expenses such as these can create financial strain.

Understanding all financial obligations helps determine realistic affordability in New York’s expensive environment. Consider the broader financial picture, not just the mortgage, to ensure financial stability in a high-cost state. You can use a home affordability calculator to ensure you’re making a well-informed decision.

Tips on Reducing Your Jumbo Loan Payment

Even if the area of New York that you want to live in necessitates a jumbo mortgage, it’s still worthwhile to explore ways to make your mortgage payment more affordable. Here’s what you can do to reduce your jumbo loan payment:

•  Consider an adjustable-rate mortgage (ARM) for a possibly lower initial interest rate, which can result in lower monthly payments during the introductory period.

•  Make a larger down payment to reduce the principal and potentially lower your interest rate.

•  Make a lump sum payment toward your principal to recast your mortgage, reducing monthly payments.

•  Refinance your mortgage to a longer term if your current payments are too high.

•  Shop for a lower homeowners insurance rate to reduce your monthly payment.

•  Shop around for different lenders to find the best interest rate offers.

The Takeaway

When considering a high-value property in New York, a jumbo loan calculator can prove incredibly useful. It helps you estimate monthly payments, total interest paid over the life of the loan, and the overall cost of a home loan.

When you’re ready to take the next step, consider what SoFi Home Loans have to offer. Jumbo loans are offered with competitive interest rates, no private mortgage insurance, and down payments as low as 10%.

How to Use the New Jersey Jumbo Loan Calculator

Deciding How Much House You Can Afford in New Jersey

Considering a New Jersey mortgage? Lenders suggest mortgage payments stay below 28% of gross monthly income. For a $1 million home, assuming a 10% down payment ($100,000) on a 30-year mortgage at 6.75%, the monthly mortgage payment would be approximately $5,837, excluding property taxes and insurance. To make this payment, lenders recommend an income of $250,000 per year.

Lenders also recommended keeping total debt payments within 36% of gross monthly income. In the example above, if your debts exceed about $1,600 a month — think about student loans, credit cards, and car payments — the income needed for a $900,000 mortgage would be higher.

Mortgage preapproval can clarify your maximum mortgage, simplifying the home-buying process. Though, only you can say what a comfortable budget is, based on your assets, lifestyle, and financial goals.

Recommended: Jumbo Loan Requirements

Components of a Jumbo Loan Payment

The main components of a jumbo loan payment include the principal and interest. The principal is the amount borrowed, and the interest is the cost of borrowing that amount.

Other components include property tax — which is included in our calculator — as well as homeowners insurance and homeowners association (HOA) fees. Knowing how these expenses factor in gives you a clearer view of your overall financial commitment and helps you prepare for the true costs of homeownership.

Cost of Living in New Jersey

The cost of living in your area will significantly affect how much you can afford to spend on a home. New Jersey, with its high median home prices, also comes with higher costs for utilities, home maintenance, transportation, and other necessities.

According to the Missouri Economic Research and Information Center (MERIC), the cost of living index in New Jersey is 114.6 (out of 100), or about 15% higher than the national average. Housing costs are almost 40% higher than the national average. Utilities are 2% higher, groceries are 4% higher, and transportation is 4% higher.

To find the best affordable places in New Jersey, consider areas with lower property taxes and utility costs, and use a home affordability calculator to ensure you’re making a well-informed decision.

Tips on Reducing Your Jumbo Loan Payment

Even if the area of New Jersey that you want to live in necessitates a jumbo mortgage, it’s still worthwhile to explore ways to make your mortgage payment more affordable. Here are some strategies:

•  Consider an adjustable-rate mortgage (ARM) to possibly initially lower your interest rate and monthly payments.

•  Make a larger down payment to reduce the principal and potentially lower your interest rate.

•  Recast your mortgage by making a lump sum payment to lower your monthly payments without changing the loan term or interest rate.

•  Modify your loan during financial hardship to make monthly payments more manageable.

•  Refinance your mortgage to a longer term if your current payments are too high.

•  Shop for a lower homeowners insurance rate to reduce your monthly payment.

The Takeaway

When considering a jumbo loan in New Jersey, it’s important to fully understand your potential financial obligations before proceeding. A New Jersey jumbo loan calculator can estimate your monthly payments and total interest paid, helping you decide if a jumbo loan fits within your budget.

When you’re ready to take the next step, consider what SoFi Home Loans have to offer. Jumbo loans are offered with competitive interest rates, no private mortgage insurance, and down payments as low as 10%.

How to Use the Kansas Jumbo Loan Calculator

Deciding How Much House You Can Afford in Kansas

As you begin your homebuying journey, you will want to figure out how much home you can comfortably afford. To help you determine this, consider the 28% rule: Lenders recommend your housing costs not exceed 28% of your gross monthly income. Let’s say you have your eye on a $1 million home in Kansas, and you decide to put down a 10% down payment ($100,000) on a 30-year mortgage at 6.75% interest. Your monthly payment would be approximately $5,837, excluding taxes and insurance. Your annual income would need to be around $250,000, assuming you hold no other debts.

To further assist you in determining affordability, lenders also recommend your total debt payments be less than 36% of your gross monthly income; other debt shouldn’t exceed about $1,600 monthly in this case. If you have other debt (like a car loan, student loan, or credit card payment), you can use a home affordability calculator.

Another avenue to help you establish affordability is to go through the mortgage preapproval process with a lender, where you provide detailed financial information. The lender will let you know whether you qualify for a loan and, if so, in what amount and under what terms.

Recommended: Income Needed for a $900,000 Mortgage

Components of a Jumbo Loan Payment

Even though there are different types of mortgage loans, the main elements of a jumbo loan payment remain: the principal and interest. The Kansas jumbo loan calculator also includes annual property tax, which may be part of your monthly payment.

You may also need to factor into your mortgage bill homeowners insurance and homeowners association (HOA) dues. Understanding all of these components helps you get a more accurate picture of your total commitment, ensuring you are well-prepared for the financial responsibilities of homeownership.

Cost of Living in Kansas

As you’re eyeing a property in Kansas, it’s a good idea to research the cost of living to get a sense of how far your dollar goes. States like Kansas with a lower cost of living typically have cheaper home prices, along with lower costs for utilities, maintenance, and transportation.

With a cost of living index of 88.5, Kansas is ranked the 5th most economical place to live in the U.S. Housing costs (77.5) tend to be even lower, by more than 20%, while utilities (97.7) are about 2.3% less expensive than the national average.

If you locate a pricier property to buy in Kansas — one that’s above the conforming loan limit — you will want to seek out a jumbo loan.

Tips on Reducing Your Jumbo Loan Payment

To reduce your monthly mortgage payment after moving into your new home, consider these options:

•  Check with a variety of insurers and compare rates. Consider a higher deductible or ask if your insurer offers a discount when bundling policies (auto and home, for example).

•  Extend the term of your loan to reduce monthly payments (though this increases the total interest you’ll pay).

•  If you face financial hardship in the future, talk to your lender about a loan modification.

•  If interest rates drop, consider a mortgage refinance. To refinance a jumbo loan, you must pay closing costs again.

The Takeaway

Use our Kansas jumbo loan calculator to help you estimate your monthly payments and total costs. The tool can help you experiment with different down payment amounts, various interest rates, and loan term options so you can make the right financial decision for your budget. By being proactive, you will be better equipped to secure and comfortably afford your dream home.

When you’re ready to take the next step, consider what SoFi Home Loans have to offer. Jumbo loans are offered with competitive interest rates, no private mortgage insurance, and down payments as low as 10%.

How to Use the Wisconsin Mortgage Refinance Calculator

Typical Closing Costs for a Refinance in Wisconsin

Closing costs for mortgage refinancing in Wisconsin can range from 2% to 5% of the new loan amount. Typical fixed costs include loan application fees (up to $500), credit report fees ($25 to $75), home appraisal fees ($600 to $2,000), recording fees ($25 to $250), and attorney’s fees ($500 to over $1,000). Percentage-based costs often comprise loan origination fees (0.5% to 1% of the purchase price), title search and insurance (0.5% to 1% of the purchase price), and mortgage points. Some fees, such as title insurance and inspection fees, are not always required for refinances.

Some lenders offer no-closing-cost refinancing, but these programs often come with higher interest rates. Similarly, refinancing a jumbo loan is typically more costly. Comparison shopping for rates, negotiating with lenders and service providers, and maintaining a good credit score are all ways to lower your costs.

Tips on Reducing Your Mortgage Refinance Payment

There are some methods you can use to lessen your mortgage refinancing payment. It’s probably best to implement these before you begin the process:

•  Improve your credit score to secure better refinancing terms and lower interest rates.

•  Extend the term of your loan to reduce monthly payments, though this will increase total interest paid.

•  Appeal your property tax assessment to potentially lower your monthly payment by gathering the relevant evidence and presenting it to your local tax assessor.

•  Shop for a lower homeowners insurance rate by increasing your deductible, bundling policies, or making home improvements.

The Takeaway

Refinancing your mortgage can be a great way to manage your monthly payments and reduce overall costs, but the decision requires careful consideration. Using our Wisconsin mortgage refinance calculator provides you with your potential break-even point and your possible savings over time. However, it’s usually best to weigh the upfront costs and ensure the long-term benefits offset these expenses.

SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.