mortgage calculation

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    We are currently in the home search process and wondering how come the NACA calculator is always the same amount versus other calculators (Redfin and other listing sites). I always adjust to the NACA rate and remove the down payment to make as accurate as possible and also include any HOA fees. For example a home selling for 400k might be a different monthly mortgage based on the taxes and insurance rate given on a different site but on NACA it never changes. Which calculator is best to use or most accurate?


    I never used the naca calculator. I hear it has an unusual algorithm.

    All other calculators operate the same though. You should get the same numbers from your MC as you do from redfin or Zillow.


    So far NACA calculator was very useful for me. If you are planning to buy down points and expecting lender grant match NACA calculator is very handy.
    Otherwise all calculators will give you the same calculation.


    Finding out your monthly payment

    There are mainly 4 things you need to find out to know what the potential monthly payment will be, you need to make sure that after adding these 4 amounts, the total is less than your PITI (Payment including Taxes, Insurance and HOA). The purchase price that you were approved for does not really matter because there are many variables like the taxes, insurance, HOA and interest if you are buying down the interest, because the more interest you buy-down, the more you can afford in purchase price, what’s important is that your monthly payment is less than the monthly payment you were approved for.

    – Mortgage
    – Taxes
    – Insurance
    – Homeowners Association (HOA) if any


    You can go to Google and type “mortgage calculator” and enter the price and current interest rate on NACA’s website and you’ll get your mortgage payment including principal and interest. However, if you have some savings and you can buy-down the interest, you can enter the interest rate that you would be able to get if you can buy some interest points

    As a buyer, you inherit the property taxes from the previous owner. Therefore, the lender will calculate your affordability based on what the previous owners were paying. Most likely, your taxes in the future will change but for now you just need to know how much the previous owners were paying. This information is usually included in the listing, just take the last year tax amount and divide it in 12 to get your property tax payment

    Any insurance company can quickly give you a quote on insurance or your realtor can give you an estimate

    Homeowners Association (HOA)
    This is usually included in the listing


    @southflorida, thank you for that excellent breakdown, this is very helpful.
    I’ma non-priority buyer looking for purchase my first home in southWEST florida (Ft Myers/Naples area) and had read somewhere that you had a great NACA real estate agent in Florida… if they cover SWFL, can you let me know who they are? TIA!


    The NACA calculator is not the best way to determine your monthly payment. The reason I say that is because they will ask you what area you are looking to buy and give you an average of the taxes for that area. If you live in a metropolitan area, taxes differ greatly by even blocks some time. A tax rate is usually a percentage of the assessed value. If you want to get a very accurate payment estimation get an insurance quote for the property go to the property taxes website for your state and pull the publicly available tax information for the property and plug it in to a Redfin calculator. Redfin is more accurate than NACA in the estimations, but I find that sometimes it can be inaccurate if the property was renovated/blighted or converted to a multiunit.

    For example lets look at this property in D.C. I grabbed the APN from the public facts section in Redin number to plug it in DC’s tax database

    APN 5314 0034
    Taxable Assessment 321,850/100 then (multiply this x 0.85 (Dc tax rate) = 2735/yr or 227 a month

    As you can see Redfin has this property at $187 but in reality this owner is paying $227. They are actually receiving a tax credit deduction. A new buyer would actually pay $3804/yr or 317/month, Redfins calculator is perfect for getting principal and interest. You have to do a bit of homework to get the actual accurate taxes & insurance otherwise you will be blindsided when its time to put your 3 months of taxes in escrow.

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