Alaska Mortgage Calculator
Mortgage is next to the only affordable option for low to average income home buyers in many parts of Alaska and the rest of the United States. On this page we offer a convenient Alaska home loan calculator to gauge your potential expenses, and up-to-date answers to several frequently asked questions concerning buying a house in Alaska.
| Total principal & interest | $0 |
| Monthly payment | $0 |
| Total interest paid | $0 |
| Payoff date | Date |
Detailed payment info
| Date | Payment | Principal Paid | Interest Paid | Remaining Balance |
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Today's Mortgage Rates Trends in Alaska
| Product | Rate | 1w change | APR | 1w change |
|---|---|---|---|---|
| 30-year fixed | 7.66 | 1.38% | 7.683 | 1.38% |
| 20-year fixed | 7.5 | 1.61% | 7.529 | 1.61% |
| 15-year fixed | 6.887 | 1.66% | 6.923 | 1.65% |
| 10-year fixed | 6.847 | 1.78% | 6.897 | 1.77% |
| 30-year fixed-rate FHA | 7.28 | 1.7% | 8.398 | 1.44% |
| 30-year fixed-rate VA | 7.124 | 1.02% | 7.366 | 1% |
- 30 Year Fixed
- 20 Year Fixed
- 15-Year Fixed
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Alaska Mortgage Calculator
Mortgages serve as the primary affordable choice for individuals with low to average income who wish to become homeowners in various regions of Alaska and the rest of the United States. To assist you in assessing your potential expenses and addressing common inquiries regarding purchasing a house in Alaska, we provide a user-friendly Alaska mortgage calculator on this webpage.
Best mortgage lenders in Alaska
Regarding mortgage lenders in Alaska, prominent nationwide options are available, such as AmeriSave and Rocket Mortgage. Additionally, there are reputable but lesser-known alternatives, including Alaska-based Residential Mortgage LLC and Alaska USA Mortgage Company LLC.
How to calculate mortgage payment in Alaska
To evaluate your future monthly expenses swiftly and effortlessly, utilize our mortgage calculator. The process is straightforward and accompanied by detailed step-by-step instructions outlined below.
How to Use Our Mortgage Calculator
Utilize our Alaska mortgage calculator to effectively plan your future expenditures. Explore each aspect to gain a comprehensive understanding of the mortgage rates in Alaska.
The initial factor to consider is the home price, which represents the amount you intend to invest in your prospective property. The down payment refers to the upfront payment required to avoid expensive insurance. To qualify for a conventional loan, you must provide a down payment of at least 20%. The remaining portion constitutes the principal, equivalent to 80% of the home price, considering a 20% down payment.
The loan term denotes the period within which you repay the mortgage through scheduled payments. Fixed-rate conforming loans can extend up to a maximum of 30 years, while adjustable-rate options usually have shorter terms.
The interest rate represents a fixed or floating fraction of the principal that you need to pay throughout the loan duration. It is important to note that the charged amount is the annual percentage rate (APR), which differs from the interest rate. The APR encompasses additional fees, such as origination fees, closing costs, and insurance payments, in addition to the interest rate.
For a more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Alaska, assuming a home price of $400,000 and a 10% down payment.
Alaska Housing Market 2023
The housing market in Alaska has experienced a significant surge in value over the past year, continuing a long-standing trend that has been further intensified by the COVID pandemic. However, the pace of growth has slowed down compared to the previous year, while both purchase rates and refinance rates have been steadily increasing and are expected to rise even further in the near future.
Median property taxes in Alaska counties
The property tax is another important thing to consider when selecting your future house. Many lenders insist on setting up a mortgage escrow account to ensure the borrower’s keeping up with the tax and insurance costs.
| County | Avg. property tax rate | Avg. home value |
|---|---|---|
| Aleutians West Census Area | $2,321 | $238,800 |
| Anchorage Municipality | $3,563 | $320,000 |
| Bristol Bay Borough | $1,513 | $186,700 |
| Dillingham Census Area | $2,132 | $189,500 |
| Fairbanks North Star Borough | $2,693 | $239,000 |
| Haines Borough | $1,012 | $243,100 |
| Hoonah-Angoon Census Area | $678 | $226,800 |
| Juneau City and Borough | $2,854 | $343,100 |
| Kenai Peninsula Borough | $1,501 | $234,600 |
| Ketchikan Gateway Borough | $2,157 | $265,700 |
| Kodiak Island Borough | $1,841 | $267,700 |
| Matanuska-Susitna Borough | $2,436 | $254,000 |
| Nome Census Area | $1,948 | $143,000 |
| North Slope Borough | $1,888 | $153,900 |
| Northwest Arctic Borough | $2,944 | $145,800 |
| Petersburg Borough | $2,089 | $205,000 |
| Prince of Wales-Hyder Census Area | $1,153 | $169,100 |
| Sitka City and Borough | $1,683 | $350,900 |
| Skagway Municipality | $1,483 | $293,800 |
| Valdez-Cordova Census Area | $1,829 | $252,200 |
| Wrangell City and Borough | $1,174 | $194,000 |
| Yakutat City and Borough | $768 | $185,000 |
| Yukon-Koyukuk Census Area | $750 | $80,600 |
Source: American Communities Survey 2016, U.S. Census
How do I calculate my mortgage payment?
If you're looking to determine whether a property in Alaska fits your budget, it's crucial to understand its value and the potential loan terms. Utilize our Mortgage Calculator, which employs a simple formula. This formula can also be used manually to calculate the estimated monthly mortgage payment (M):
M = (P * i * (1 + i)^n) / ((1 + i)^n - 1)
Here's a breakdown of the variables involved:
M - Estimated monthly mortgage payment.
P - Principal amount.
I - Monthly interest rate (to obtain it, divide your annual mortgage rate by 12).
N - Loan term expressed in months (the total number of monthly payments).
To illustrate this calculation, let's consider an example of a 15-year mortgage loan with a fixed 6.99% APR (0.0699 as a unit fraction). Suppose the house costs $500,000, with a 10% down payment of $50,000. The principal amount (P) would then equal 90% of the initial home cost ($500,000 - $50,000 = $450,000).
To determine the monthly interest rate (i), divide the APR by 12: 0.0699% / 12 = 0.005825%.
Next, convert the loan length from years to months: n = 15 * 12 = 180.
Applying these values to the formula, we find that the estimated monthly mortgage payment (M) amounts to approximately $4042.
Keep in mind that this calculated M value is an approximation and does not account for any additional fees. Use our Alabama Mortgage Tax Calculator to get a more accurate estimate.
Tips for first-time home buyers in Alaska
First and foremost, there are multiple federal agencies, such as USDA, FHA, and VA, that provide loan guarantees for selected borrowers. Alaska offers various options to cater to the needs of first-time homebuyers and their budget.
Apart from the government-guaranteed programs, it is essential to consider the offerings provided by UHC (Alaska Housing Corporation). Specifically, if you qualify for an FHA loan with a FICO score of at least 660, you can apply for the FirstHome program, which offers assistance with down payment and closing costs. This program covers up to 6% of the loan amount and is in the form of a 30-year fixed-rate second loan.
In case you don't meet the criteria for the FirstHome program, there's an alternative called the Alaska Housing Score Loan, which covers up to 4%. The minimum satisfactory credit score required for this program is 620.
For first-time homebuyers, here are some valuable tips:
- Obtain pre-approval from multiple lenders to enhance your creditworthiness in the eyes of home sellers. It is highly recommended to obtain pre-approval letters from at least two or three different lenders.
- Compare mortgage rates from at least three lenders to ensure you make an informed decision. The more options you consider, the better.
- Conduct preliminary calculations based on the pre-approved amount to plan your future expenses effectively.
- Start saving for a down payment as early as possible and aim to set aside as much as you can. A higher down payment reduces the principal amount, ultimately leading to potential expense reductions. Early savings are crucial in this regard.
- If you are eligible for a VA loan, prioritize considering this option.
- Explore government-backed plans and local assistance programs, as they often come with enticing offers. Don't miss out on these opportunities.
- Whenever possible, pay off previous debts to improve your financial standing and increase your chances of securing a favorable mortgage.