Missouri Mortgage Calculator

Best mortgage lenders in Missouri

The top mortgage lenders in Missouri have a nationwide presence. These include such recognizable names as AmeriSave, Paddio®, First Citizens Bank.

How to calculate mortgage payment in Missouri

Use our straightforward mortgage calculator MO to evaluate your future monthly expenses. Below, you'll find comprehensive step-by-step instructions.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Missouri 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 Missouri parameters.

The first element to consider is the home price – that is, the amount you intend to allocate for your future property. A down payment represents the upfront portion of this price. To avoid costly insurance, it is essential to provide at least a 20% down payment, especially with a conventional loan. The remaining amount constitutes the principal, which is, for example, 80% of the home price when a 20% down payment is made.

The loan term refers to the period during which you will fully repay your mortgage through scheduled payments. Fixed-rate conforming loans are typically permitted to last up to 30 years, while adjustable-rate options often come with shorter terms.

An interest rate is a fixed or variable fraction of the principal that you must pay throughout the loan's duration. It is worth mentioning that you are actually charged an annual percentage rate (commonly abbreviated as APR), which is not precisely identical to 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 accurate assessment, the interest rate used in these calculations is based on the current mortgage rates in Missouri, taking into account a $400,000 home price and a 10% down payment.

Median property taxes in Missouri 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.

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

Missouri Housing Market 2024

Over the last year, there has been a significant rise in the housing market's value in Missouri, which is consistent with a well-established trend that was further accentuated by the impact of the COVID-19 pandemic. However, it's important to note that the rate of growth has slowed compared to the previous year. Meanwhile, both purchase and refinance rates have been steadily climbing for some time and are anticipated to continue their upward trajectory in the near future.

How do I calculate my mortgage payment?

The easiest method to accomplish this is by utilizing our calculator, which operates based on a straightforward formula. You can also manually compute the amount to be paid using the same formula:

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 fixed-rate mortgage loan with a fixed interest rate of 6.99%, which in fractional terms can be expressed as 0.0699. The house is appraised at $500,000 and you plan to make a down payment of 10%, which is $50,000. The resulting principal (P) will be $450,000, or 90% of the original value of the house, calculated by subtracting the $50,000 down payment from the $500,000 value of the house.

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 Missouri

To begin, several federal agencies such as USDA, FHA, and VA offer loan guarantees to eligible borrowers, providing numerous options that align with the budgets of many first-time homebuyers.

In addition to these government-backed programs, it's advisable to explore opportunities provided by UHC (Missouri Housing Corporation) for residents of Missouri. Specifically, first-time homebuyers meeting the qualifications for an FHA loan with a FICO score of at least 660 can apply for the FirstHome program. This program offers assistance with down payments and closing costs, covering up to 6% of the loan amount. It's important to note that this assistance is provided in the form of a 30-year fixed-rate second loan exclusively. In the event that you don't meet the criteria for the FirstHome program, there's no need to lose hope. The Missouri Housing Score Loan serves as an alternative program that covers up to 4%, requiring a minimum satisfactory credit score of 620.

Here are some valuable tips for those embarking on their first home-buying journey:

1. Obtain pre-approval in advance. This step will enhance your credibility in the eyes of home sellers. It's highly recommended to secure pre-approval letters from not just one, but at least two or three different lenders.
2. Compare mortgage rates from different lenders. Aim to consider at least three lenders, as the more options you explore, the better.
3. Conduct preliminary financial calculations based on the pre-approved loan amount to effectively plan for your future expenses.
4. Begin saving for a down payment as early as possible, setting aside as much as you can. A larger down payment reduces the principal amount, which, in turn, can decrease your overall potential expenses. Therefore, it's crucial to commence saving well in advance.
5. If you're eligible for a VA loan, prioritize this option above all others.
6. Explore government-backed plans and local assistance programs, as they may present enticing opportunities that you won't want to overlook.
7. If feasible, work on paying off any existing debts before embarking on your home-buying journey.