# Florida Mortgage Calculator | the ascent

## How do I calculate my mortgage payment?

Although the formula is not simple, you can manually calculate your mortgage payment. Fortunately, unless you really want to, there’s no need to calculate your mortgage payment from scratch – just use our handy Florida mortgage calculator above. To do this manually, start with the three variables that affect the principal and interest portion of your mortgage payment:

• Director (P): How much money you originally borrowed. If your original loan amount was \$300,000, that’s the principal amount you use to calculate your mortgage payment, not your current balance.
• Interest rate (r): Although the loan’s APR gives you a better idea of ​​the true cost of borrowing, for the purpose of calculating your mortgage payment, use the loan’s interest rate. One caveat, though – before using the mortgage formula, convert your interest rate to a decimal number and then to a monthly interest rate (because you are calculating your monthly mortgage payment). For example, if your loan interest rate is 4%, convert that to 0.04, then divide by 12, which gives you a monthly rate of 0.0033. Note that if you have an adjustable rate mortgage, the calculation only shows your initial mortgage payment.
• Number of payments (n): How many monthly payments you will make on your mortgage. Take the number of years in the loan term and multiply it by 12. The two most common mortgage terms are 30 and 15 years, which translate to 360 and 180 monthly payments, respectively.

Here’s how these three variables fit into the formula to calculate your monthly mortgage payment, which we’ll call “M”:

It should also be noted that this formula only calculates the principal and interest portion of your mortgage payment. Most lenders require you to pay a monthly portion of your property taxes and insurance as well as principal and interest payments, and some even charge your HOA fees. For this reason, lenders often abbreviate your mortgage payment to PITI (Principal, Interest, Taxes and Insurance).

## What to know before buying a house in Florida

While most things to know before buying a home in Florida apply pretty much everywhere (like credit scoring requirements), there are a few state-specific things to know.

### Termites

Termites are a potential problem everywhere, but can be a particularly big problem in warmer climates. Pay close attention to any termite damage when inspecting your home.

### Insurance Considerations

If you plan to buy in an area (like most of Florida) that is particularly prone to flooding or hurricanes, your lender may require you to purchase flood insurance, storm insurance, or both. in addition to standard home insurance.

If you plan to Direct in the home you buy in Florida, there is a special tax exemption (called the Homestead Exemption), which excludes the first \$25,000 of your home’s assessed value from property taxes. You request it once when buying the house and it is renewed every year.

### Rental Restrictions

In many areas of Florida, there are local restrictions, taxes, and rules that govern the use of real estate as a rental property. This is especially worth considering if you’re considering buying a home in one of Florida’s most touristy areas. For example, in Key West, you cannot rent a house for less than 30 days without a special (expensive) license. So if you’re considering listing on Airbnb or something similar, do your homework first.

## Tips for first-time home buyers in Florida

Florida has some of the best assistance programs for first-time home buyers. Florida Housing Finance Corporation, a nonprofit organization, offers a first-time mortgage program that combines a 30-year fixed-rate mortgage with a second mortgage—no monthly payments—that provides up to 10 \$000 for down payment and closing costs, among other options. There are three programs:

• Florida Assist (FL Assist) Second Mortgage Program: Provides \$7,500 to \$10,000 as a second mortgage at 0% interest and no payments. The loan does not mature until the home is sold or you refinance.
• HFA Preferred Grants: Eligible borrowers can get 3% to 5% of the purchase price of their home in the form of down payment assistance, which is fully canceled after five years.
• Florida Home Loan Program: Up to \$10,000 second mortgage at 3% interest with a 15-year repayment term.

Check the Florida Housing website for current details on these and other programs for first-time home buyers in Florida.