{"id":50546,"date":"2021-07-08T10:12:24","date_gmt":"2021-07-08T17:12:24","guid":{"rendered":"https:\/\/www.movoto.com\/blog\/?p=50546"},"modified":"2022-04-19T22:45:04","modified_gmt":"2022-04-20T05:45:04","slug":"how-a-mortgage-calculator-with-pmi-helps-first-time-buyers","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/","title":{"rendered":"How a mortgage calculator with PMI helps first-time buyers"},"content":{"rendered":"<p>If you\u2019re thinking about buying your first home, you\u2019re likely also thinking about your first mortgage. Using a mortgage calculator with private mortgage insurance (PMI) is an excellent way for home buyers to make intelligent and informed financial decisions regarding their new loan.<br \/>\nBuying a home is one of the most significant transactions you will make in your lifetime. While <a href=\"https:\/\/www.bankrate.com\/mortgages\/analysis\/\">record-low mortgage rates<\/a> are helping first-time buyers enter the market, the budgeting and research associated with obtaining a mortgage can be daunting. Use these best practices to guide you through the process.<\/p>\n<h2>What is PMI?<\/h2>\n<p><a href=\"https:\/\/www.movoto.com\/blog\/pmi-mortgage-insurance-who-are-insurers\/\">Private mortgage insurance (PMI)<\/a> protects the lender in case you default on your loan. If your down payment is less than 20%, your lender will likely require you to have PMI. With the <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/highlights-from-the-profile-of-home-buyers-and-sellers#financing\">average down payment for first-time home buyers at 7%<\/a>, most first-time homeowners will have to factor PMI into their monthly payments. Typically, PMI costs between 0.5% and 1% of the original loan amount per year. The amount gets bundled into your monthly payment by your lender during the underwriting process.<br \/>\nNot all mortgage calculators account for PMI, but by using one that does, you\u2019ll gain a more accurate <a href=\"https:\/\/www.movoto.com\/blog\/8-tips-for-using-a-monthly-mortgage-payment-calculator\/\">estimate of your monthly payments<\/a>.<\/p>\n<h2>Five Ways a Mortgage Calculator with PMI Can Help<\/h2>\n<p>Here are a few ways that a mortgage calculator with PMI can help first-time homebuyers:<\/p>\n<h3>#1. It Shows How Down Payments Impact Your Loan<\/h3>\n<p>A good mortgage calculator will ask you to input your <a href=\"https:\/\/www.movoto.com\/blog\/what-does-a-mortgage-down-payment-mean-what-is-pmi\/\">anticipated down payment amount<\/a>. By playing around with the numbers and entering various down payment percentages, you\u2019ll be able to see how your monthly payment is impacted according to how much you put down. This will help you determine the down payment amount that best suits your budget and financial goals.<\/p>\n<h3>#2. It Accounts for Local Taxes and Insurance<\/h3>\n<p>Most mortgage calculators will also ask for your location or ZIP code, which allows it to pull in approximate <a href=\"https:\/\/www.movoto.com\/blog\/what-4-components-make-up-your-mortgage-loan-payment\/\">property taxes<\/a> and homeowner\u2019s insurance costs for your county. Some calculators do not account for these additional items, leaving buyers without a complete picture of their mortgage responsibility.<\/p>\n<h3>#3. It Helps You Understand How Much You Can Afford<\/h3>\n<p>A <a href=\"https:\/\/www.movoto.com\/blog\/mortgage-loan-calculator-with-taxes-and-insurance-10-ways-to-make-sure-it-fits-in-your-budget\/\">mortgage calculator with PMI<\/a> can establish your home buying budget. If you\u2019ve started your home search and are looking at listings within a specific price range, you\u2019ll know what a monthly mortgage payment might look like at both the high and low end. Having this information is vital when shopping for a home, as you\u2019ll know what you can afford.<\/p>\n<h3>#4. It Shows How Important Your Interest Rate is<\/h3>\n<p>You\u2019ve probably heard that your interest rate is a crucial component of your mortgage \u2014 but do you know how much it impacts what you\u2019ll pay monthly? With a mortgage calculator, you can input various interest rates to see how the payment terms change. Keep all of the other values the same to understand how much your interest rate impacts your month-to-month bill.<\/p>\n<h3>#5. It Sets You Up for Success<\/h3>\n<p>When you have trustworthy resources at your fingertips, you\u2019ll feel more confident in your home search process. A mortgage calculator with PMI is the ideal tool to give you the information you need to navigate your mortgage wisely. Knowing how various inputs impact your payment, paired with the advice and information you\u2019ll get from your lender, will set you up for success in your home journey.<\/p>\n<h2>Find a Mortgage Calculator with PMI<\/h2>\n<p>Never start your home search without understanding your full mortgage responsibilities. Source as much information as you can from local real estate experts and mortgage lenders in your area, so you can make informed decisions. While you\u2019re working toward your loan, be sure to play around with a mortgage calculator to get your financial bearings.<br \/>\nTo search properties for sale, be sure to <a href=\"https:\/\/www.movoto.com\/\">explore our listing site<\/a>. When you\u2019re ready to speak with a <a href=\"https:\/\/www.movoto.com\/blog\/what-does-a-real-estate-agent-do\/\">real estate agent<\/a>, we\u2019ll carefully match you with a local market expert.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re thinking about buying your first home, you\u2019re likely also thinking about your first mortgage. Using a mortgage calculator with private mortgage insurance (PMI) is an excellent way for home buyers to make intelligent and informed financial decisions regarding their new loan. Buying a home is one of the most significant transactions you will make in your lifetime. While record-low mortgage rates are helping first-time buyers enter the market, the budgeting and research associated with obtaining a mortgage can be daunting. Use these best practices to guide you through the process. What is PMI? Private mortgage insurance (PMI) protects [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":50549,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[223,227],"tags":[136,49,176,165,78,84,111,182,85,86,192,191,87],"class_list":["post-50546","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying","category-mortgage","tag-affordability","tag-buying-a-home","tag-down-payment","tag-first-time-homebuyer","tag-home-owners","tag-interest-rates","tag-mortgage","tag-mortgage-calculator","tag-mortgage-loan","tag-mortgage-rates","tag-private-mortgage-insurance","tag-property-taxes","tag-refinance","post--single"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How a mortgage calculator with PMI helps first-time buyers<\/title>\n<meta name=\"description\" content=\"On the market for your first home? Here are a few ways that a mortgage calculator with PMI can help first-time homebuyers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How a mortgage calculator with PMI helps first-time buyers\" \/>\n<meta property=\"og:description\" content=\"On the market for your first home? Here are a few ways that a mortgage calculator with PMI can help first-time homebuyers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/\" \/>\n<meta property=\"og:site_name\" content=\"Movoto Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MovotoRealEstate\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-08T17:12:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-20T05:45:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.movoto.com\/blog\/wp-content\/uploads\/2021\/07\/blog-first-time-young-buyers2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1250\" \/>\n\t<meta property=\"og:image:height\" content=\"625\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Movoto Editorial Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@movoto\" \/>\n<meta name=\"twitter:site\" content=\"@movoto\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Movoto Editorial Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/\"},\"author\":{\"name\":\"Movoto Editorial Team\",\"@id\":\"https:\/\/www.movoto.com\/blog\/#\/schema\/person\/06693b6bfbd6fec38952da620bd47c0e\"},\"headline\":\"How a mortgage calculator with PMI helps first-time buyers\",\"datePublished\":\"2021-07-08T17:12:24+00:00\",\"dateModified\":\"2022-04-20T05:45:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/\"},\"wordCount\":672,\"publisher\":{\"@id\":\"https:\/\/www.movoto.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.movoto.com\/blog\/wp-content\/uploads\/2021\/07\/blog-first-time-young-buyers2.jpg\",\"keywords\":[\"Affordability\",\"Buying a Home\",\"Down Payment\",\"First-Time Homebuyer\",\"Home Owners\",\"Interest Rates\",\"Mortgage\",\"Mortgage Calculator\",\"Mortgage Loan\",\"Mortgage Rates\",\"Private Mortgage Insurance (PMI)\",\"Property Taxes\",\"Refinance\"],\"articleSection\":[\"Buying\",\"Mortgage\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/\",\"url\":\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/\",\"name\":\"How a mortgage calculator with PMI helps first-time buyers\",\"isPartOf\":{\"@id\":\"https:\/\/www.movoto.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.movoto.com\/blog\/how-a-mortgage-calculator-with-pmi-helps-first-time-buyers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.movoto.com\/blog\/wp-content\/uploads\/2021\/07\/blog-first-time-young-buyers2.jpg\",\"datePublished\":\"2021-07-08T17:12:24+00:00\",\"dateModified\":\"2022-04-20T05:45:04+00:00\",\"description\":\"On the market for your first home? 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