When it comes to taking out a mortgage in Oklahoma, understanding the total cost of your loan, including taxes and fees, is essential. Utilizing a mortgage loan calculator effectively will give you a clearer picture of what to expect before making a decision. Here’s a guide on how to include taxes and fees in your Oklahoma mortgage loan calculator.
1. Understanding Taxes and Fees
Before diving into the calculations, it is important to know the types of taxes and fees typically associated with mortgage loans in Oklahoma. Taxes usually include property taxes, which vary by county. Fees can encompass origination fees, closing costs, and other associated expenses.
2. Start with Your Loan Amount
The first step in using a mortgage loan calculator is entering your desired loan amount. This is the price of the home minus your down payment. Ensure that you have this figure accurate to get the best estimate of your monthly payments.
3. Incorporate Estimated Property Taxes
In Oklahoma, property tax rates can range from about 0.8% to 1.25% of your home’s assessed value. Consider checking your local county assessor's website for precise tax rates. To factor in these costs, multiply the assessed home value by your area’s tax rate, then divide by 12 to get a monthly estimate. For example:
If your estimated property tax is $2,400 annually, you would enter:
$2,400 ÷ 12 = $200 per month
4. Add Homeowner's Insurance
Homeowner's insurance is another crucial element to include in your calculations. The average cost of homeowner’s insurance in Oklahoma generally falls between $800 and $1,500 annually, depending on the value of your home and coverage options. Divide the annual premium by 12 for a monthly amount.
For instance, if your homeowner’s insurance is $1,200 per year, your monthly premium would be:
$1,200 ÷ 12 = $100 per month
5. Factor in Mortgage Insurance (PMI)
If your down payment is less than 20%, you may need private mortgage insurance (PMI). PMI typically costs between 0.3% and 1.5% of the original loan amount per year. Use an average figure for your calculator. If your PMI is $1,500 annually, that’s:
$1,500 ÷ 12 = $125 per month
6. Calculate Closing Costs
Closing costs can also add a significant amount to your mortgage. In Oklahoma, these usually range from 2% to 5% of the loan amount. It’s best to calculate an average or get an estimate from your lender. For a home priced at $200,000 with a 3% closing cost, that’s:
$200,000 × 0.03 = $6,000
Dividing this by 12 gives a monthly impact of:
$6,000 ÷ 12 = $500
7. Enter the Values into Your Calculator
Now that you have all monthly estimates, input them into your mortgage calculator. Enter the loan amount, the mortgage interest rate, the loan term, and the calculated monthly costs for taxes, homeowner’s insurance, PMI, and any other fees. Make sure to account for each component accurately to arrive at your estimated monthly payment.
8. Review and Adjust
After inputting all values, take a moment to review the results. If the monthly payment feels too high, consider adjusting variables such as the loan amount or your down payment. This will give you a better insight into what you can realistically afford.
Conclusion: Making Informed Decisions
Including taxes and fees in your Oklahoma mortgage loan calculator is crucial to making informed financial decisions. Ensure you take the time to gather accurate data and properly account for all components to understand your total monthly payment and plan your budget accordingly.
