Mortgage Payment Calculators and Current Mortgage Rates February 25, 2010

Mortgage payments calculators are good tools to evaluate the total monthly costs of a home loan as well as evaluating the qualifications requirements for a new home purchase.  Too many consumers, unfortunately, use the mortgage payment calculator without entering the current mortgage rates and therefore often obtain distorted findings on what their monthly mortgage payment will be as well as how much of home loan or how large a house they may qualify to purchase.

Accurate data is the key to using all mortgage calculators.  Mortgage payment calculators, specifically, rely on accurate data regarding current mortgage rates.  The input parameters for the mortgage payment calculator are the term or length of the home loan, the mount of the mortgage loan and the mortgage rate.  The user can choose to change the term and loan amount to see which loans are in their best interest or to determine how to obtain the right payment amount to qualify for a home loan, but the mortgage rate input should be based on current market rates not user discretion.

The five biggest U.S banks with mortgage lending divisions includes Chase Bank mortgage, Bank of America mortgage, Citibank mortgage, Wells Fargo mortgage and US Bank mortgage.  The following mortgage rates were obtained from these bank websites to use in the mortgage payment calculator to ascertain current monthly mortgage payments for a $175,000.00 home loan.  The rates are for single family homes that are owner occupied and do not require mortgage insurance.  The list includes the mortgage rate, points charged, the APR and the monthly mortgage payment result using these numbers in the mortgage payment calculator.

Wells Fargo 30 year rate is 4.875% with 1 point and a 5.065% APR resulting in a $926.12 per month payment using the mortgage payment calculator.
US Bank 30 year rate is 4.875% with 1 point and a 5.029% APR resulting in a $926.12 monthly payment.
Bank of America 30 year rate is 4.875% with 0.625 points with a 5.040% APR reflecting a $926.12 monthly payment based on the mortgage calculator.
Chase Bank Mortgage 30 year rate is 4.875% with 1.5 points and a 5.087%9 APR showing a $926.11 per month payment.
Citibank Mortgage 30 year is at 5.00% with 0.50 points and a 5.259% APR, the mortgage payment calculator calculates a $939.44 per month payment on this loan.

Mortgage rates are subject to change and rate and points may be different depending geographic location as well as the applicant’s credit history, income and assets.  In preparing the rates and payment options, selectcalculators.com attempted to obtain mortgage rates and points that were similar to avoid comparing lower mortgage rates with more points or costs with those that have fewer points and costs.  Please review the total costs of obtaining the home loan when choosing a mortgage lender and not just the mortgage rate and monthly mortgage payment.

Tags: Bank of America mortgage, Chase Bank mortgage, Citibank mortgage, current market rates, mortgage calculator, mortgage lender, mortgage loan, mortgage payment, mortgage payment calculator, mortgage rate, Wells Fargo mortgage

This entry was posted on Friday, February 26th, 2010 at 2:01 pm and is filed under Credit and Rate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.