Rhode Island Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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The median value for homes in Rhode Island is $284,200, and the average outstanding mortgage amount is $185,777. Rhode Island has an average monthly mortgage payment cost of $1,118, ranking 25th in the United States.
The average household earns approximately $7,127 per month. However, these figures represent average rates across the state, and your actual cost may vary depending on factors like home price and interest rates.
This guide describes how to use the MoneyGeek Rhode Island mortgage calculator to obtain a personalized quote and suggests ways to lower your mortgage payments.
Start Here: Plug In Your Mortgage Factors
If you want to buy a home, our calculator can help you determine how much your monthly mortgage payment is likely to be. MoneyGeek explains the various factors associated with your mortgage payment to ensure you understand how lenders determine your rates.
Why and How to Use Our Mortgage Calculator
The Rhode Island mortgage calculator helps you plan your finances to ensure that you can meet the costs of your mortgage. The calculator allows you to select details that suit your unique situation and estimate your loan amount and repayment terms.
You can also use the calculator to compare quotes across multiple lenders in Rhode Island and choose the right type of loan with the best terms for you. To help you understand the key things you should consider while buying a home, MoneyGeek outlined 12 factors.
Home Price:
The maximum price you are comfortable paying for your home or the amount you want to borrow.
Down Payment:
Most home loans require you to pay a percentage as a down payment, and the amount varies across lenders. A higher down payment translates to lower monthly mortgage payments.
Interest Rate:
The amount paid to lenders as compensation for the borrowed money.
Loan Terms:
Choose the time frame you want to repay your loan. The most common are 15 and 30 years, although you can also choose 10 or 20 years.
Payments per Year:
Refers to the number of payments you want to make each year. Choose 12 for monthly payments.
Property Tax:
This is the annual tax paid to your local government for a home in Rhode Island. The state average for property taxes is $3,548 per year.
HOA Fees:
You will be required to pay monthly homeowners association (HOA) fees if you live in a neighborhood with this requirement.
Principal & Interest:
The amount you borrowed from the lender plus the additional cost payable to the lender for the loan.
Monthly Payment:
The total monthly payment amount paid to the lender, including principal, interest, tax and any other fees.
Principal Payment:
The part of your monthly payment that reduces your total loan amount.
Interest Payment:
This refers to the amount you pay the lender for the mortgage to borrow money.
Total Cost with Interest:
Your total payment to the lender, which will depend on your unique circumstances.
Monthly mortgage payments depend on several factors, including your location, home price, type of loan and the lender you choose. The average monthly payment in Rhode Island is $1,118. There are some ways for you to reduce your costs.
These include:
- Less expensive house. You can decide to buy a lower-cost house that requires a smaller loan to reduce your monthly payments.
- Different location. Rhode Island ranks 42nd among the 50 states in the United States for property tax rates at an annual cost of $3,548. That’s higher than most states, so buying a house in another state could lower your costs if moving is an option for you.
- Find a lower interest rate. Shopping around for offers from various lenders or making a sizeable down payment can help reduce your interest rate.
- Extend your loan terms. A more extended loan period means you will pay higher interest rates. However, your monthly payments will be lower.
- Apply for the Rhode Island mortgage payment assistance program.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
If you are a first-time homebuyer, getting all the information you need to make a sound decision can be overwhelming. This guide provides you with the information you need for your home buying journey. Here are a few steps to get you started:
- Shop & Compare Rates - Rhode Island has several lenders offering mortgages with different terms. Shopping around will help you understand Rhode Island mortgage rates and choose the best option for your budget.
- Not Ready To Buy? - If you are not sure whether to rent or buy a house, you may weigh your unique situation and finances before deciding.
- Learn More - The best mortgage varies based on your needs. You can find out more about additional loan types like FHA loans, VA home loans and reverse mortgages to help you find the right option.
Frequently Asked Questions About Mortgages in Rhode Island
The amount of mortgage you can afford in Rhode Island depends on how much you are able and willing to spend. Lenders issue mortgage loans based on your debt-to-income (DTI) ratio. In general, 43% is the maximum DTI lenders are willing to accept.
The average outstanding mortgage amount in Rhode Island is $185,777.
If you choose a higher down payment, you will pay less each month for your mortgage. Some loan types require a minimum percentage as a down payment, such as 3% for conventional loans or 3.5% for an FHA loan. Others do not require any at all. A 20% down payment can make a significant difference in your costs if you can afford it.
If you get a conventional loan and pay a down payment that’s less than 20%, you will need to purchase private mortgage insurance.
Property tax rates vary across states and affect your monthly payment amounts. The average annual property tax in Rhode Island is $3,548.
Rhode Island homeowners pay a monthly average of $1,118 for a mortgage, lower than the national average by $41.
In Rhode Island, the median home price is about $284,200.