The Benefits of Using a Mortgage Calculator
If you're newlywed or nearly married its likely that you are looking for a new home. When you are shopping around, it is critical to know what you can afford. Your monthly mortgage payment does not typically consist only of the loan amount, but will usually include your annual property taxes, homeowners insurance, and mortgage insurance. When trying to determine how much home you can afford, we always turn to our friends at NerdWallet to give it to us straight.
Determining the amount of your mortgage payment happens by adding up all of these factors, plus principle and interest can be very difficult. Fortunately, thanks to modern technology, Mortgage Calculators are readily available. They can help you determine what you can afford, compare rates, understand the benefits of putting down a little extra money, and illustrate how much you can save by paying more on principle over the life of the loan.
Given that the housing market in Nashville hit a historic high last year, while the Nashville metro area is predicted to be the fourth hottest housing market in 2020 we know that this is definitely where you want to be! The growing job market and low unemployment rate, despite a worldwide pandemic, helped make Nashville one of the top markets for growth last year, with a similar growth expected this year as well.
Located in the heart of the Tennessee Valley, Nashville played key roles in both the Revolutionary War and Civil War, and quickly became a center for transportation and manufacturing. Nicknamed “Music City,” today Nashville is a major center for the music industry. Manufacturing and transportation still play a key role in the city’s diverse economy, along with the education, healthcare, financial services, and corporate headquarters sectors. This is where you want to be, so before you buy be sure to crunch all the numbers using a mortgage calculator. By keying in some basic details on the price of the home, the interest rate you are expecting to pay, the annual property taxes, and mortgage insurance (if it is required), you can get a clear picture of what your monthly payment will really look like in order to determine how much you can afford.
If you have been quoted a couple different rates or are considering an adjustable rate mortgage, this can help you determine how the interest rate will affect your monthly payment. This is especially helpful when deciding on an adjustable rate mortgage vs. fixed rate mortgage. If you are on an adjustable rate loan and interest rates spike, you will want to make sure you can still afford your monthly payments.
Keep in mind, the population of the greater Nashville area continues to surge, according to the Nashville Business Journal, with five of the counties in Greater Nashville expected to see population growth of more than 50% by 2045. Also known as the Midstate region, the Nashville area is expected to grow by over 500,000 people in the next 20 years...and who would be surprised by such growth? Nashville is ranked 7th among the large metro areas gaining the most young professionals with a median age in Nashville of 34 years vs. the Tennessee median age of 39. It's a young vibrant state with an even younger and more vibrant capitol city!
You will be amazed when you discover how much you can save in interest over the life of the loan just by putting a little extra down up front, making bi-weekly payments instead of monthly payments, or paying additional principle each month. A good mortgage calculator will illustrate this for you and help you to see the benefits of making small changes to the way you pay-off your loan.
Using a mortgage calculator can be an excellent resource whether you are looking to purchase a new home, are interested in refinancing your current loan, or even if you are interested in exploring a reverse mortgage. The more informed you are, the better.
After all the Nashville metro area remains the growth center of Tennessee, according to Kiplinger, with the region’s employment gain coming in at 2.2% last year. The financial publication forecasts job growth in the state to be 0.9% this year, with Amazon and Apple adding over 7,000 new jobs in their Nashville hubs.
Key Employment Stats:
The GDP of Nashville-Davidson-Murfreesboro-Franklin MSA is over $132.2 billion, according to the Federal Reserve Bank of St. Louis, and has grown by over 59% since 2010.
Nashville Post reports the area GDP grew by more than 6% in 2018, more than double the growth rate of the entire U.S.
Job growth in Nashville last year was 3.1%.
Nashville MSA has experienced job growth of 26% over the last 10 years, making the region the 2nd-fastest growing metro economy in the country.
Unemployment rate in Nashville is 2.4% with a regional labor force participation rate of 68.9%.
Target industries in Nashville include health care, music and entertainment, advanced manufacturing, corporate operations, and supply chain management.
Companies with corporate headquarters in Nashville include Bridgestone Americas, Dollar General, HCA Healthcare, and Ryman Hospitality Properties.
Top employers in the Greater Nashville Region include Vanderbilt University Medical Center, HCA Healthcare, Trane Company, Nissan North America, Middle Tennessee State University, and Amazon.
Nashville MSA is home to 20 accredited four-year, two-year, tech schools and postgraduate institutions including Vanderbilt University, Tennessee State University, Nashville State Community College, and Belmont University.
88.3% of the Nashville residents have a high school degree or higher, while 39.7% hold a bachelor’s degree or advanced degree.
Interstate highways I-24, I-40, and I-65 converge in Nashville, putting the region within a 2.5 hour drive of 12 million people.
CSX Transportation provides freight rail service with two major rail yards in Nashville.
Port of Nashville on the Cumberland River provides access to the Ohio and Mississippi Rivers and the Gulf of Mexico.
Nashville International Airport (BNA) is one of the fastest growing top 50 airports and the 33rd busiest in the U.S., providing service to nearly 16 million passengers each year.
The Nashville housing market hit an historic high, with home sales volume up 7% even while sale prices continued to rise. In fact, Nashville is projected to be the 4th-hottest housing market in the U.S., ahead of favorite sunbelt cities like Phoenix and Dallas, according to WKRN.com, so if you want in, now is the time to start shopping around!
Even for those who have bought a house and been through the process before, however, we know that the mortgage process can be a confusing one. Amidst all the terminology and applications, the question that often remains most important to a home buyer—how much will my mortgage payment be each month?
Knowing that there a lot of factors that determine your monthly mortgage payment. Your payment depends on your loan type, interest rate, and down payment, amongst a few other factors. There are several tools out there to help a home buyer calculate their monthly payment. Of all the calculating tools out there today, we have found that you simply cannot make a move without consulting one of these mortgage calculators:
As the official Nashville Visitor and Tourism website says, “If cities had soundtracks, Nashville’s would be like no other.” Live music of all types is performed seven nights a week, and with more than 180 recording studios and 5,000 working musicians Nashville is known around the world as Music City. Of course, there’s more to Nashville than just music. The metro area is home to pro sports teams, a huge park system, and famous attractions such as the Parthenon and Nashville’s Hot Chicken restaurants. We look forward to welcoming you as newlyweds and new residents. Let's make 2021 our year!