Delaware Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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Delaware homeowners spend about $38 less on their mortgages than the national average. However, each homeowner will see varying rates. MoneyGeek’s Delaware state mortgage calculator calculates mortgage costs by accounting for the cost of your home, interest rates established by your lender, annual property and real estate taxes and other criteria that may affect your mortgage payment amounts.
On average, homes in Delaware cost around $236,300, and the average outstanding mortgage amount in the state is $185,527. The annual property tax in Delaware is approximately $1,240.
In Delaware, the average monthly payment is $1,121. With the average Delaware household earning approximately $7,247, mortgage payments account for about 15% of residents’ monthly income.
Start Here: Plug In Your Mortgage Factors
Using MoneyGeek's mortgage calculator is one way to estimate your mortgage in Delaware. We break down the factors impacting the cost below.
Why and How to Use Our Mortgage Calculator
Before buying a home, you want to make sure that you understand the cost of your mortgage. Compared to other states, Delaware has one of the cheapest annual property taxes. When taking out a mortgage loan, it is critical to consider these charges.
To use our mortgage calculator in Delaware, enter the price of your home, loan amount and other fees to get an estimate of your monthly payments. Consider the factors and fees listed below when determining your mortgage so that you aren’t caught off guard by any unexpected costs.
Home Price:
Enter the maximum price you are ready to spend on a home or the actual amount you are willing to pay.
Down Payment:
A down payment is usually required when financing your home. A higher down payment means lower monthly costs.
Interest Rate:
The interest rate is the annual rate lenders charge for the money you borrowed. MoneyGeek lists daily mortgage rate reports from lenders.
Loan Terms:
Mortgage terms typically last 15 or 30 years depending on how long you plan to take when paying off the loan.
Payments per Year:
Consider how many times a year you can afford to pay. Typically, people break it down to monthly payments, which is a lot more manageable to pay than a lump sum.
Property Tax:
In Delaware, the average property tax is $1,240 annually. This is the amount that you pay the government, which is calculated based on the purchase price of your home.
HOA Fees:
If you live in a community with a homeowner’s association (HOA), this means additional fees on your mortgage loan.
Principal & Interest:
The total amount you borrowed plus the cost you have to pay to compensate the lender for the loan.
Monthly Payment:
The amount that you pay every month, including principal, interest, property taxes and HOA dues.
Principal Payment:
The monthly payments you make that go toward paying off the entire balance of the loan.
Interest Payment:
The amount the lender charges for the mortgage loan based on the interest rate.
Total Cost with Interest:
The total amount you pay the lender that includes all types of charges.
Monthly mortgage payments vary based on the home price, location, type of loan and lender. In Delaware, the average monthly mortgage payment is $1,121. If you want to lower your monthly mortgage costs, here are a few things that you can do:
- Buy a less expensive house. A lower-cost home will result in a lower mortgage payment.
- Make a sizable down payment. Homeowners who make a payment of less than 20% are usually required to purchase private mortgage insurance. The cost for this is determined by the cost of the home.
- Extend your loan term. You can request a 30-year term if the monthly payment for a 15-year term is too high. As you pay more of the interest, the monthly bills significantly reduce.
- Research assistance programs. Determine whether you are eligible for a government loan or a mortgage relief program. In Delaware, government programs provide mortgage assistance if you are struggling to pay your mortgage.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
MoneyGeek compiled useful information that can help you in your home-buying journey. Follow this simple step-by-step guide before getting a mortgage.
- Shop and compare rates - In Delaware, you can choose between several lenders when shopping for a mortgage. To find the best option for you means shopping around and learning about the average Delaware mortgage rates.
- Not ready to make a purchase? - Decide whether you want to rent or buy a home by reviewing your finances.
- Learn More - The best mortgage loan for you is determined by your needs. Find out more about FHA, VA and reverse mortgages to see which one is right for you.
Frequently Asked Questions About Mortgages in Delaware
Understanding your debt-to-income ratio will determine how much you can afford. Furthermore, mortgage lenders evaluate affordability based on your debt-to-income (DTI) ratio. A home loan is considered affordable if your DTI is 43% or less.
The average outstanding mortgage in Delaware is $185,527.
It depends on how much the home costs and the down payment you are aiming for. A higher down payment reduces your monthly mortgage payments by a significant amount since it can eliminate private mortgage insurance.
If you can only afford less than 20% of the home value with your down payment, you are required to get private mortgage insurance in Delaware.
The average annual property tax in Delaware is $1,240.
The average monthly payment for a mortgage in Delaware is $1,121.
In Delaware, the median home value falls somewhere around $236,300.
sources
- Delaware Bank Commissioner. Office of the State Bank Commissioner - State of Delaware. "Mortgage Information." Accessed March 3, 2022.