Mortgage calculator which includes mortgage deduction?

Question

I'm looking for a decent mortgage calculator which factors in the mortgage deduction. Basically my goal is to be able to forecast my monthly payment as accurately as possible. Thanks!

Answer 1

Look at calculated industries real estate qualifier 2 at this website.
http://www.calculated.com/12/prd150/Mortgage+PaymentCalc+-+Compact+Desktop.html
It has the features you are seeking, is inexpensive, and is very easy to use.

Answer 2

There's no calculator I know of that's going to automatically calculate your mortgage deduction, but nevertheless it's still fairly easy to calculate. The calculator I'd recommend is the HP 12C, which I've used for over 20 years - they haven't changed it in all that time, and it's still the standard tool in the financial industry. You'll have to get used to the "Polish logic" method of info input, but again, it's not too difficult.

Your mortgage payment is easy to calculate on the calculator. Your just enter the number of payment periods, interest rate, and present value, and it'll give you the payment. Your mortgage payment won't change on a fully amortized loan, regardless of your deduction.

To calculate your mortgage deduction, just take the total interest paid for the year and multiply times your marginal tax rate. For example: if you have a $400,000 fully amortized loan at 6% interest, your monthly payment would be $2,398.20, or $28,778.40 per year. Of that amount the first year, $23,866.38 would be interest. If you're in a 25% tax bracket, your deduction would be $5,966.59, or an average $497.22 per month. The deduction will gradually decrease over time as more of your monthly payment represents principal and less represents interest.

So that it's easier to see each month, I'd recommend creating an amortization schedule on an Excel spreadsheet. With this schedule, you'll be able to see how much of each payment goes toward interest and how much goes toward principal, for each and every month of the entire loan. Again, there's a short learning curve, but it would give you exactly what you're looking for. You can create such a schedule in just a couple of minutes.

Answer 3

You must figure 1.25% of tax assessed value for property taxes. You must also be able to handle increases on this as your assessed value increases. A "little" plumbing work is scary. You need to get someone out there that can give you firm estimates on what's going on. Plumbing is one of those things where something minor can turn into $20,000 in renovations and upgrades. Easily. All the government usually requires is property taxes, income taxes, and trash. As long as the house is kept up and you aren't violating any major laws, you will be left alone. Are you saying that you would be able to buy the house outright? Get a GOOD and experience real estate agent. Not one of these newbies who got into Real Estate at the height of the bubble. Someone that's been doing it for at least 20 years in your area. Get a FULL and THOROUGH inspection of the home. Find out comps (this will tell you fair market value) and how much work the house needs. Find out if the city/county would consider the house livable as is. You need to be super aggressive about dotting your i's and crossing your t's and finding out ANY flaws in this home. Your real estate agent & title company will also investigate any liens. Your agent should also forward you a copy of any CC&R's, if this applies. I can't stress enough using a strong agent who can think of everything that you would never have thought of. The last thing you need is a $300,000 lien coming up against the property 6 months after you buy it. Or, to find out that the house has been condemned by the county, is going to be sold to build a school or highway, or is in violation of zoning.

Answer 4

I have a great calculator on my website that could help you with this, click on Total Cost and Benfits Calculator at http://www.feltfinancial.com/Calculator.html
OR try www.IRS.gov