How to Use the Boston Mortgage Calculator

Components of a Mortgage Payment

A mortgage payment mainly covers the principal (borrowed amount) and interest (borrowing cost). Your monthly payment might also include property tax, which is based on your home’s assessed value. If your down payment is less than 20%, you may be required to purchase PMI. Other potential costs that are often rolled into the payment are homeowners association (HOA) fees and homeowners insurance.

Homebuyers who are considering purchasing with the help of a Federal Housing Administration (FHA) loan will have an upfront and ongoing mortgage insurance premium to pay. These loans are still very affordable and are popular with first-time buyers. If you are considering an FHA loan, use an FHA mortgage calculator.

Similarly, if you are purchasing with a loan backed by the U.S. Department of Veterans Affairs, you’ll want a VA mortgage calculator.

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The Cost of Living in Boston

Boston is one of the most expensive cities to live in the country. Because its cost of living is much higher than the national average, you will see that your dollar doesn’t go as far when it comes to average home prices, utilities, home maintenance, transportation, and other necessities.

In fact, Massachusetts ranks among the highest priced states to live, according to the Council for Community and Economic Research’s Cost of Living Index (COLI), which assigns COLI numbers higher than 100 to places that are more expensive than the national average, and a COLI below 100 to those less expensive. Massachusetts’s 2024 COLI was 141.2, and Boston’s was 145.9.

While Boston is among the most expensive cities, it’s still more affordable than places like San Francisco (166.8) and New York City (the borough of Manhattan had a 2024 COLI of 233.6).

This chart highlights cost of living numbers for major expenses in Boston:

*Source: Council for Community and Economic Research’s Cost of Living Index.*

Although Boston is a very popular destination for its culture and beauty, its high cost of living kept it off the best affordable places in the U.S. list.

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Tips on Reducing Your Mortgage Payment

If you are a homebuyer in Boston, you are probably looking to reduce your mortgage payment so you can allocate funds to other expenses or continue to build an emergency fund. Here are some things you can do to lower your monthly mortgage payment:

•  Make additional payments toward the principal to decrease both the term of your loan and the total interest paid over its lifetime.

•  Once you’ve built 20% equity in your home, request that your lender cancel PMI payments.

•  Review your property taxes regularly. If you think your property taxes are too high, the Boston City Assessing Department can inform you about the appeals process.

•  See if your insurer offers a discount for bundling policies. Sometimes if you purchase more than one policy with them — both a homeowners and auto policy, for instance — they may offer a discount.

•  If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.

Boston’s First-Time Homebuyer Assistance Programs

If you’re buying your first home in Boston, there are down payment assistance programs available to help you cover the initial costs. To qualify, you must not have owned a primary residence within the past three years. These programs can provide financial aid for the down payment, closing costs, or both, making homeownership more accessible.

The Bay State offers a variety of programs as a first-time buyer in Massachusetts. Each program has certain criteria related to income and purchase price limits. For example, My Mass Mortgage offers 30-year fixed interest rate loans to low- and moderate-income first-time buyers in Massachusetts.

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The Takeaway

Using a Boston mortgage calculator is a valuable step in the home-buying process. It helps you estimate monthly payments, understand the impact of different down payment amounts, and compare various loan terms and interest rates. This tool can provide a clearer picture of your financial obligations and help you make informed decisions about your home loan. Especially if you are a first-time homebuyer in Boston, the mortgage calculator can be a practical resource in planning your homeownership journey.

How to Use the Atlanta Mortgage Calculator

Components of a Mortgage Payment

The main components of a mortgage payment are principal and interest. The mortgage principal is the amount you borrow to purchase the home, while the interest is the cost of borrowing that principal. Your monthly payment may also include property tax, private mortgage insurance (PMI), and homeowners association (HOA) fees.

If you’re considering an FHA loan, you may want to use an FHA mortgage calculator, which allows for that kind of loan’s mortgage insurance premiums.

Likewise, a VA mortgage calculator can be helpful if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.

The Cost of Living in Atlanta

Atlanta’s cost of living is 4% lower than the national average. Housing expenses are 13% lower, but grocery and health care expenses are slightly above the national average.

The city has a cost of living index of 96.0 (the average cost of living in the U.S. is 100 on this scale). Here’s how Atlanta compares to the national average in other areas:

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Atlanta’s First-Time Homebuyer Assistance Programs

If you’re looking to buy your first home in Atlanta, there are several down payment assistance programs available. These programs are specifically designed to help you cover the initial costs associated with purchasing a home, including the down payment, closing costs, or both. To qualify for most of these programs, you typically must not have owned a primary residence within the past three years.

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Tips on Reducing Your Mortgage Payment

Once you purchase a home in Atlanta, it might still be possible to reduce your mortgage payment. Here are some strategies you can explore:

•  Drop private mortgage insurance (PMI). Once you have 20% equity in your home, you can ask your lender to drop private mortgage insurance. This can be achieved through regular payments or home appreciation, and it can save you a considerable amount of money each month.

•  Consider mortgage recasting. By making a lump sum payment toward your mortgage principal, your lender will re-amortize the loan, keeping the same interest rate and term. This results in a new, smaller balance, which translates to lower monthly payments.

•  Appeal property taxes. If you believe that your annual city property tax assessment is excessively high, you have the right to appeal your property taxes. Submitting a well-documented and thorough appeal can potentially lead to a lower tax bill, which will positively impact your monthly mortgage payment.

•  Extend your loan term. If you’re struggling to make your mortgage payments, one option is to extend the term of your loan, which reduces the monthly payment but increases the total interest paid over the life of the loan.

•  Shop around for homeowners insurance. You can shop around for a lower homeowners insurance rate as a way to save money. Consider increasing your deductible, bundling your homeowners and auto insurance policies, or making upgrades that enhance your home’s security features or storm-resistance.

The Takeaway

Using an Atlanta mortgage calculator can help you make informed decisions about homeownership. It can give you a clearer picture of what your monthly payment might be based on your down payment amount, interest rate, and term. By understanding the full cost of a mortgage, you can avoid financial strain down the road and ensure a more secure and comfortable home-buying experience for you and your family.

How to Use the Omaha Mortgage Calculator

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.

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.

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Tips on Reducing Your Mortgage Payment

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.

How to Use the Houston Mortgage Calculator

Components of a Mortgage Payment

Your monthly payment on a mortgage will be the sum of a few different items, including a portion of your loan principal and interest it has accrued. Want to secure the most favorable rate? Work on building your credit score, spend some time shopping around for lenders, and explore different loan programs available to you.

The Houston mortgage calculator includes property tax, as many lenders require you to pay them as part of your monthly payment. PMI will also need to be in there if your down payment is less than 20%. Lenders often like to add in home insurance and homeowners association (HOA) fees, too.

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The Cost of Living in Houston

The cost of living in Houston is below the national average, according to COLI 2024 Annual Average Data, which means you’ll need a reasonable budget both to buy property and to live in this city. On an index where 100 is the U.S. average cost of living, the Space City weighs in at 94.2, making it more affordable than Austin, Dallas, or Fort Worth. When you’re thinking about your housing budget, remember that you’ll need to pay for other things, too. Grocery and health-related expenses are at about the national average here, even though housing is a bit more affordable than it is in comparison to other Texas cities.

Houston makes the list of the best affordable places in the U.S. This city of 2.3 million people is affordable when you compare it with other major U.S. cities. Houston has a lot to offer, too — spots to commune with nature, a variety of cultural and arts scenes, and the famous NASA Space Center to boot. Here’s how living costs in Houston compare to the national index.

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Houston’s First-Time Homebuyer Assistance Programs

If you have your sights set on buying your first home, there is support for you in Texas. The state has down payment assistance programs in place that may be able to help you cover the initial costs. You may also qualify as a first-time homebuyer if you have not owned a primary residence within the past three years.

Programs like the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation at times provide first-time homebuyers with financial aid for a down payment, closing costs, or both, making homeownership more accessible. The state’s first-time homebuyer programs for Texas residents include options for potential newbie and repeat homebuyers.

Tips on Reducing Your Mortgage Payment

If you find that your monthly payment on your home loan doesn’t feel workable, or the long view on your interest rate looks concerning, here are some strategies you can use to try to lower vital variables:

•  Keep a watchful eye on your equity. When it reaches 20%, immediately ask your lender to remove PMI charges.

•  Pay a lump sum toward your loan’s principal, then ask the lender to revise your monthly payment. This move is known as recasting your mortgage.

•  Think about doing a mortgage refinance if your calculations show that current rates and costs could mean that a new rate will bring you savings. (Remember to factor in closing costs.)

•  Appeal your property taxes if you believe your assessment is too high. A successful appeal can reduce your property tax bill, but use caution: If you invite scrutiny of your home’s value, you could end up with even higher taxes.

•  If you run into financial hardship, talk to your lender, explain the situation, and request a modification of the loan to make it more manageable. This might involve extending the term, which will lower monthly payments. It will increase the total interest paid over the life of the loan.

•  Look for ways to lower your homeowners insurance costs. You may be able to do this by increasing your deductible or bundling together cheaper policies.

The Takeaway

The Houston mortgage calculator can be a great helper if you’re hoping to secure a home loan in this sprawling city. This tool can help you estimate what your monthly payments will be and figure out the total interest or overall cost of your mortgage, taking into account factors like down payment amount and property tax rate. The calculator will give you a solid starting point for getting a mortgage preapproval and can help you assess your best mortgage options.