Idaho Mortgage Calculator

Best mortgage lenders in Idaho

The most popular mortgage lenders in Idaho operate nationwide. These include such recognizable names as AmeriSave, Morty Inc, Pentagon Federal Credit Union. Several lesser known but trustworthy options include Idaho-based Idaho First Mortgage, InterWest Mortgage.

How to calculate mortgage payment in Idaho

Use our simple mortgage calculator ID to assess your forthcoming monthly financial commitments. Comprehensive, easy-to-follow instructions are provided below.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Idaho for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Idaho parameters.

The first element of the puzzle is the home price – that is, the amount you are planning to spend on your future property. A down payment represents the portion of this price to be paid upfront. To avoid costly insurance, you must come up with at least a 20% down payment (in the case of a conventional loan). The remaining amount constitutes the principal, for example, 80% of the home price given a 20% down payment.

A loan term is the period for the full repayment of your mortgage through scheduled payments. Fixed-rate conforming loans typically have a maximum term of 30 years, while adjustable-rate options often come with shorter terms.

An interest rate is a fixed or floating percentage of the principal that you must pay over the duration of the loan. It's important to mention that you are actually charged an annual percentage rate (commonly abbreviated as APR), which is not exactly the same as the interest rate. Although the interest rate makes up the majority of the APR value, the latter also includes various fees, such as origination fees, closing costs, insurance payments, and more.

For a more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Idaho, assuming a $400,000 home price and a 10% down payment.

Median property taxes in Idaho counties

Property tax is another crucial factor to take into account when choosing your future home. Many lenders require the establishment of a mortgage escrow account to ensure that the borrower stays current with both tax and insurance expenses.

Source: American Communities Survey 2016, U.S. Census

Idaho Housing Market 2024

Over the past year, there has been a significant rise in the housing market's value in Idaho. This trend has been ongoing and was accentuated by the COVID-19 pandemic. However, the rate of growth has slowed compared to the previous year. Additionally, both purchase and refinance rates have been steadily increasing for a while and are anticipated to continue rising in the near future.

How do I calculate my mortgage payment?

The most convenient way to do this is to make use of our calculator. It's powered by a simple formula, which you can also use to calculate the amount to be paid by hand:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Idaho

To begin with, there exist several federal agencies (USDA, FHA, and VA) that provide loan guarantees to eligible borrowers. Many first-time homebuyers can explore these options to find the one that best aligns with their budget.

In addition to these government-backed programs, it's worthwhile to explore offerings from the UHC (Idaho Housing Corporation) that are accessible to residents of Idaho. Specifically, first-time homebuyers who qualify for an FHA loan with a minimum FICO score of 660 can apply for the FirstHome program, which offers assistance with down payments and closing costs. This option covers up to 6% of the loan amount for either down payment or closing costs. It's essential to note that this assistance is provided in the form of a 30-year fixed-rate second loan. If you do not meet the criteria for the FirstHome program, there's no need to lose hope.

Some useful tips for first-timers:

1. Obtain pre-approval in advance, as this will enhance your creditworthiness in the eyes of home sellers. It's advisable to obtain pre-approval letters from not just one, but at least two or three different lenders.
2. Compare various mortgage rates by selecting at least three lenders. The more options you explore, the better-informed your decision will be.
3. Conduct preliminary financial calculations based on the amount for which you've been pre-approved. This will allow you to plan your future expenses accordingly.
4. Start setting aside funds for a down payment as early as possible and save as much as you can. A substantial down payment reduces the principal amount, which, in turn, can lower your potential expenses. Therefore, initiating savings well in advance is crucial.
5. If you are eligible for a VA loan, consider this option as your primary choice.
6. Explore government-backed programs and local assistance initiatives. These programs may offer attractive opportunities, so be sure not to overlook them.
7. If possible, work on paying off any existing debts to improve your financial situation.