Home Mortgage Rates and Mortgage Calculator

Current Average Mortgage Rates

Use the following chart and table below to monitor mortgage rates as you research your home purchase in the Taos New Mexico area. Then use the Mortgage Payment Calculator below to run some home purchase payment scenarios to determine your home loan payment expenses.

Trending Mortgage Rates Chart


Powered by MortgageCalculator.org

Trending Mortgage Rates Table


Powered by MortgageCalculator.org

Calculate Your Mortgage Payment

Use the following Mortgage Payment Calculator to enter the details about your home purchase financing to find out what your principal and interest loan payments would be for different down payments and interest rates.

  1. Enter the purchase price of the home in the “Total Amount” field.
  2. Enter the amount you will be paying as a “Down Payment“.
  3. Enter the “Interest Rate“.
  4. Enter the “Amortization Period“… usually 15 or 30 years.
  5. Enter the “Payment Period“… usually monthly.
  6. Click on the “Calculate” button to see your principal and interest payment.
  7. Click on the “Circled (i)” information icon by the monthly payment for more details.

 

Components of a Mortgage Payment

Your monthly mortgage payment consists of several different components. These components in your house payment are commonly referred to as a “PITI” or principal, interest, taxes and insurance. Private Mortgage Insurance (PMI) (see below) and Homeowner’s Association (HOA) dues may also be included as a portion of your total house payment.

Principal

This is defined as the original amount of the money loaned for your home purchase, excluding interest. It is also defined as the remaining balance of a loan, excluding interest. The interest is calculated on the remaining principal of the loan over time. Over the life of the home loan, the portion of the principal in each payment goes up, while the portion of the interest in each payment goes down, but the total principal and interest payment remains the same.

Interest

This is defined as the charge for the use of money – i.e., the loan. Over the life of the home loan, the portion of the interest in each payment goes down, while the portion of the principal in each payment goes up.

Taxes

Property taxes for a home are determined by the local County Assessor. In New Mexico, property taxes are calculated off of a “tax base value” which is determined to be 1/3 of the market value of the property. A mill levy (a value per $1,000 worth of tax base value) is applied to tax base value to determine the property taxes due. The mill levy value varies from County to County and from town or neighborhood within a County. In New Mexico, property taxes are billed in November with two tax installments due each year; the first installment is due by December 10; the second installment is due by May 10 of the following year.

Insurance

Homeowner’s insurance, or hazard insurance, is the policy that covers your home and property from stated losses, including things like fire and other stated hazards. It usually includes some liability coverage for instances where someone might sustain an injury while on your property. Homeowner’s insurance can be obtained form your own insurance agent. The standard policy pays replacement costs, less depreciation based on actual cash value. Check with your own insurance agent about the different types of insurance available for your home.

Note: Property taxes and insurance premiums may be collected into an escrow account by your mortgage lender, depending on the amount of your down payment. Down payments less than 20 percent of the loan amount may trigger the requirement to have your property taxes and home insurance premiums collected along with your monthly mortgage payments and held in an escrow account. An escrow account is a trust account set up by the lender to hold a portion of each monthly payment so that funds will be available for the County Treasurer and insurance company when due.

PMI (Private Mortgage Insurance) – Depending on the amount of your down payment, you may be required to have PMI. For down payments of less than 20 percent of the loan amount, you will likely be required to pay PMI as well. Since loans with small down payments are perceived to involve substantially more risk for the lender, the lender requires protection in case the loan goes into foreclosure before the loan has been paid down to a safer equity level. Because PMI is available, lenders are able to offer loans with lower down payment requirements. PMI may include an up front fee which is payable as part of your closing costs, and will also include an amount to be paid monthly along with your regular mortgage payment. The cost of PMI will vary according to the amount of your down payment.

FHA (Federal Housing Administration) loans charges a fee for mortgage insurance call MIP or Mortgage Insurance Premium. MIP will require an up front fee (which may be rolled into your loan amount – i.e., it may be financed) and it will also include a monthly fee that is rolled into your monthly payment.

VA (Veterans Administration) charges a one-time funding fee which may also be rolled into your loan amount and financed.