# South Dakota Mortgage Calculator: Estimate Your Monthly Payment

Updated: February 23, 2023

In 2021, around 71% of South Dakota residents were homeowners. The median home value for the state is \$194,700.

South Dakota has a \$1,042 average monthly mortgage payment and \$6,147 as the average monthly income per household. These are estimates across the state and may vary depending on a person’s unique situation.

Our guide helps you understand the different factors that determine your monthly mortgage payment and how to use them with our South Dakota mortgage calculator. You can use it to get a personalized estimate to decide how much you can afford for your home loan, considering interest rate, down payment, property taxes, etc.

Plus, we include tips on how to lower a mortgage payment in South Dakota and what to do after you know how much home you can afford.

## Start Here: Plug In Your Mortgage Factors

Our South Dakota mortgage calculator considers the 12 factors of a home loan to provide a comprehensive estimate of your monthly payment. If there is a factor you want more information about, we explain each below.

## South Dakota Mortgage Calculator

\$898
Total monthly payment\$1,271
\$898
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Total monthly payment\$1,271

## Why and How to Use Our Mortgage Calculator

Before purchasing a home in South Dakota, it is essential to determine how much mortgage you can afford, the down payment you need, and what the repayment terms are likely to be. Understanding how these factors and others influence your monthly mortgage payment amount helps you make the right purchase decision.

MoneyGeek’s South Dakota mortgage calculator enables you to plan your finances. You provide various details about your home loan to estimate your monthly premium. Here are the factors you need to provide for the calculator or know for a mortgage payment estimate in South Dakota.

1
###### Home Price:

This is the maximum home price you are comfortable paying or the amount you want to get from a lender.

2
###### Down Payment:

You put a down payment on the total home price. It is usually 20% but can be lower or higher.

3
###### Interest Rate:

If you know the interest rate you qualify for, use it in the calculator. Or, look at MoneyGeek’s interest rate report for the most current rates.

4
###### Loan Terms:

The period within which you want to repay the mortgage loan. The term can be 10, 15, 20 or 30 years.

5
###### Payments per Year:

Specifies the number of payments you make within a year. Making 12 payments or one per month is the most common.

6
###### Property Tax:

If you buy a property, there is an amount you need to pay the government each year as tax. The average annual cost of property tax in South Dakota is \$2,857.

7
###### HOA Fees:

If you plan to live within a community with a homeowners association (HOA), you pay a monthly HOA fee. Enter the amount in the calculator if applicable.

8
###### Principal & Interest:

The principal is the amount you get from the lender, while the interest is the additional amount you pay the lender for giving you a loan.

9
###### Monthly Payment:

The total monthly amount you pay for your mortgage includes principal, interest, property tax, HOA fees and home insurance.

10
###### Principal Payment:

The part of your monthly payment that goes towards reducing your loan balance.

11
###### Interest Payment:

The amount you pay the lender for the mortgage based on the interest rate. It does not reduce your loan balance.

12
###### Total Cost With Interest:

The amount of money you pay for the mortgage loan for principal and interest during the term.

WHAT YOU CAN DO TO LOWER YOUR MONTHLY PAYMENT

Getting a mortgage loan in South Dakota can be very easy, but if your budget is low, here are some tips to lower your monthly mortgage payment.

• Pay less for a house. Buying a cheaper home makes your monthly mortgage payment go down so you can remain within your budget.
• Change the location. Of the 50 states, South Dakota ranked 35th for property tax with an average annual cost of \$2,847. To lower your mortgage payment, consider a home in another state with a cheaper property tax bill. Or, choose a location in South Dakota with a low property tax rate overall.
• Find a lower interest rate. You can reduce your interest rate by making a large down payment for your loan. You can also research multiple lenders to find the lowest rate.
• Extend your loan term. Extending your loan term allows you to lower your payment, although your interest rate may go up, and you will pay more interest throughout the loan term.

## Next Steps: What to Do After You Have Estimated Your Mortgage Payments

Understanding the requirements for getting a mortgage loan in South Dakota can help you secure the right option for your needs. MoneyGeek collected important information to help you through the process.

1. Shop & Compare Rates -[South Dakota mortgage rates vary across lenders, and comparing quotes can help you find the best option.
2. Not Ready To Buy? - If you are not quite ready to choose between renting or buying a house in South Dakota, weigh your options before making a decision.
3. Learn More - South Dakota lenders provide several mortgage loan types, including FHA loans, VA loans and reverse mortgages.