Mortgage Payment Formula:
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Definition: This calculator estimates the total monthly mortgage payment for properties in Georgia, including principal, interest, property taxes (0.8%), and insurance ($1500/year).
Purpose: It helps homebuyers and homeowners in Georgia understand their full monthly housing costs when planning to purchase or refinance a home.
The calculator uses the formula:
Where:
Explanation: The first part calculates principal and interest, while the second part adds Georgia-specific taxes and insurance.
Details: Proper payment estimation helps with budgeting, loan comparison, and ensuring you don't become "house poor" by underestimating monthly costs.
Tips: Enter the loan amount, interest rate (current average is 6.5%), and loan term (typically 15 or 30 years). All values must be > 0.
Q1: Why include taxes and insurance?
A: Georgia lenders typically require escrow for these costs, so they're part of your actual monthly payment.
Q2: Is the 0.8% tax rate accurate statewide?
A: This is an average. Rates vary by county (0.87% in Fulton, 0.92% in DeKalb, 0.73% in Gwinnett).
Q3: What if my insurance costs differ?
A: The $1500 estimate is for a $300k home. Adjust manually by changing the formula.
Q4: Does this include PMI?
A: No. Add 0.5%-1% of the loan annually if your down payment is less than 20%.
Q5: How accurate is this calculator?
A: It provides a good estimate but consult a lender for exact figures, as rates change daily.