Utah Mortgage Calculator

Best mortgage lenders in Utah

The leading mortgage lenders in Utah have a nationwide presence. These include such recognizable names as Morty Inc, Northpointe Bank, First Citizens Bank. Several lesser known but trustworthy options include Utah-based Utah Mortgage Loan Corporation, Altius Mortgage.

How to calculate mortgage payment in Utah

Use our user-friendly calculator UT 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 Utah 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 Utah parameters.

The initial aspect to consider is the home price, which signifies the amount you intend to invest in your future property. A down payment is the upfront portion of this price that needs to be paid. To avoid costly insurance premiums, it's advisable to aim for a minimum down payment of 20%, particularly in the case of a conventional loan. The remaining sum constitutes the principal, typically amounting to 80% of the home price when a 20% down payment is made.

Next, the loan term defines the duration within which you will fully repay your mortgage through scheduled payments. Fixed-rate conforming loans can extend up to 30 years in most cases, while adjustable-rate options usually have shorter terms.

An interest rate is a fixed or floating fraction of the principal that you must pay through the duration of the loan. It is worth mentioning 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 bulk of the APR value, the latter also includes various fees (e.g. origination fee, closing costs, insurance payments etc).

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

Median property taxes in Utah counties

Another crucial factor to take into account when choosing your future home is property tax. It's essential to be aware of the property tax rates in your area as they can significantly impact your overall homeownership expenses.

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

Utah Housing Market 2024

The past year has seen a steep increase in the market value of housing in Utah. This continues a longstanding trend amplified by the COVID pandemic. Nevertheless, the pace of growth has diminished compared to the previous year, while both purchase and refinance rates have been on the increase for some time and are expected to rise 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 Utah

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.

Besides these government-guaranteed programs, it is worth considering some offers from UHC (Utah Housing Corporation) available to Utahns. 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. Utah Housing Score Loan is an alternative program that covers up to 4%. The minimum satisfactory credit score is 620.

Here are some valuable tips for first-time homebuyers:

1. Get Pre-Approved Early. Obtain pre-approval for a mortgage before you start house hunting. This boosts your credibility in the eyes of home sellers. It's advisable to secure pre-approval letters from not just one, but at least two or three different lenders.
2. Compare Mortgage Rates. Don't settle for the first offer you receive. Compare mortgage rates from a minimum of three different lenders. The more options you explore, the better chance you have of finding a favorable rate.
3. Plan Based on Pre-Approval Amount. Use the amount you've been pre-approved for as a foundation for your financial planning. Calculate your prospective expenses and budget accordingly.
4. Prioritize Saving for a Down Payment. Start saving for a down payment as early as possible. A larger down payment reduces the principal amount, potentially lowering your overall costs. Initiate your savings plan well in advance.
5. Consider VA Loans if Eligible. If you're eligible for a VA loan (for veterans and active-duty military), it's often a favorable choice due to its beneficial terms. Explore this option before others.
6. Explore Government-Backed and Local Assistance Programs. Investigate government-backed mortgage programs and local assistance initiatives. These programs may offer enticing benefits, so be sure not to overlook them.
7. Manage Existing Debts. If feasible, work on paying off any existing debts before applying for a mortgage. Reducing your debt burden can improve your financial standing and increase your chances of securing a favorable loan.

These tips can help you navigate the complex process of buying your first home and make informed decisions along the way.