Nebraska Mortgage Calculator

Best mortgage lenders in Nebraska

The most popular mortgage lenders in Nebraska operate nationwide. These include such recognizable names as Rocket Mortgage, NBKC Bank, Paddio®. Several lesser known but trustworthy options include Nebraska-based Eagle Mortgage Co, Mortgage Specialists LLC.

How to calculate mortgage payment in Nebraska

Use our straightforward and useful mortgage calculator NE to evaluate your future monthly expenses. A detailed step-by-step instruction follows below.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Nebraska 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 Nebraska parameters.

The first element in this puzzle is the home price - that is, the amount you plan to spend on your future property. A down payment is the portion of this price that needs to be paid upfront. To avoid costly insurance, it's necessary to come up with at least a 20% down payment (in the case of a conventional loan). The remaining amount constitutes the principal, which is typically 80% of the home price when a 20% down payment is made.

A loan term is the period over which you'll fully repay your mortgage through scheduled payments. Fixed-rate conforming loans can extend up to 30 years, while adjustable-rate options often feature shorter terms.

An interest rate is a fixed or variable percentage of the principal that you'll need to pay over the loan's duration. It's important to note that you are actually charged an annual percentage rate (APR), which is not identical to the interest rate. While the interest rate accounts for the majority of the APR value, the latter also includes various fees, such as origination fees, closing costs, and insurance payments.

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

Median property taxes in Nebraska counties

The property tax is another crucial factor to take into account when choosing your future home. Several lenders require the establishment of a mortgage escrow account to ensure that the borrower remains current with property tax and insurance expenses.

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

Nebraska Housing Market 2024

In the past year, the housing market in has experienced a substantial increase in its market value, continuing a longstanding trend that was further amplified by the COVID-19 pandemic. Nevertheless, the pace of growth has decreased compared to the previous year, while both home purchase and refinance rates have been on the rise for some time and are expected to increase further 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 Nebraska

First, there are several federal agencies (USDA, FHA and VA) that guarantee loans for selected borrowers. Many first-time homebuyers can find options which most fit their budget.

In addition to these programs, it's worth considering some offers from UHC (Nebraska Housing Corporation) available to Nebraskans. In particular, first-time home buyers can apply for FirstHome – down payment and closing costs assistance program, if they qualify for a FHA loan and their FICO score is at least 660. This option covers up to 6% of the loan amount toward down payment and/or the closing costs. It is important to note that this option comes in the form of a 30-year-fixed-rate second loan only. If you do not qualify for the FirstHome program, do not despair. Nebraska Housing Score Loan is an alternative program that covers up to 4%. The minimum satisfactory credit score is 620.

Here are some helpful tips for first-time homebuyers:

1. Get pre-approved in advance. This will enhance your creditworthiness in the eyes of potential home sellers. It's highly recommended to obtain pre-approval letters from not just one, but at least two or three different lenders.
2. Compare various mortgage rates by considering at least three different lenders. The more options you explore, the better your chances of finding a favorable rate.
3. Conduct preliminary financial calculations based on the amount you have been pre-approved for to plan for your future expenses.
4. Begin saving for a down payment as early as possible and set aside as much as you can. A larger down payment reduces the principal amount, which can lower your overall expenses. So, it's essential to start saving in advance.
5. If you qualify for a VA loan, consider this option as a priority.
6. Explore government-backed plans and local assistance programs, as they may offer attractive incentives.
7. If feasible, work on paying off any existing debts before starting the homebuying process.