HARP Mortgage Calculator

HARP Mortgage Calculator

Just like for a traditional loan, when you refinance through the Home Affordable Refinance Program (HARP), you will have a single lump-sum payment every month. This amount includes your principal and interest payments as well as your taxes and insurance. Keep in mind when choosing the term for your loan (15, 20, or 30 years), that your term will greatly affect your monthly payment. The shorter the repayment period, the higher your monthly payments will be.

Principal and Interest

As with any loan, you will pay more towards interest and less on the principal during the first few years of the loan. To see how your interest payments are set up, you can examine an Amortization Schedule from your lender. This form will break down, month by month, how much interest you will be paying to the lender, and how much of your payment will go towards the principal and build equity in your property. 

See if you qualify for a HARP loan, fill out our quick 1-minute form to have a Mortgage Advisor contact you.

Homeowner’s and Mortgage Insurance

Hazard and homeowner’s insurance is required for any mortgage. This is to ensure that in the case of disaster, the cost of the home can be recovered. This is both for your benefit and for that of the lender. Should anything happen, the insurance will give you money to either rebuild or pay off your current loan. Also, because HARP loans are based on your Loan-to-Value (LTV) ratio, you will most likely be required to have private mortgage insurance. This is just another payment that helps the lender mitigate any risks associated with loaning the money for the property. 

Property Taxes

All mortgages require that you maintain an escrow account for the payment of taxes. This escrow amount will be included in your total monthly payment and will be applied every year when property taxes come due on your property. By including the escrow account, both you and the lender can rest easy knowing taxes for the home will be paid on time each year and that no legal issues regarding ownership of the home will come into play.

See if you qualify for a HARP loan, fill out our quick 1-minute form to have a Mortgage Advisor contact you.