mortgage

The mortgage file contains classes and functions that can be used to calculate various attributes of a fully amoratarized mortgage period.

Mortgage

class mortgage_calc.mortgage.Mortgage(value: float, payment: float, interest: float = 7.145, months: float = 360, tax: float = 1.16, ins_rate: float = 0.42, pmi_rate: float = 1.0)[source]

Parameters:

value – The total value of the property to be purchased
payment – The total down-payment for the property
interest – The annual interest rate for the loan, defaulted to the 2023 value of 7.145%
months – The duration of the loan in units of months. Defaulted to 360
tax – The annual tax rate for the property, defaulted to 1.16%
ins_rate – The annual insurance rate for the property, defaulted to 0.42%.
pmi_rate – The annual rate for private mortgage insurance, defaulted to 1.0%

This class will determine the monthly payments to be made on a purchased property over an entire Amoratized mortgage time line. This class does not account for HOA fees. This class has the following public attributes.

Variables:

value – The value of the property.
payment – The down payment on the property.
interest – The interests rate for the loan.
months – The number of months over which the loan is distributed.
tax – The rate the property is taxed at.
ins_rate – The insurance rate for the property.
pmi_rate – The Private Mortgage Inusrance. Only applicable when the down payment is less than 20% of the home value.
loan_amount – The value of the loan, value - payment.
monthly_taxes – The tax value paid per month.
monthly_insurance – The insurance paid monthly.
monthly_total – The total amount paid on the property per month.

Examples

Example showing how to instantiate a class and how to access and print attributes.

from mortgage_calc.mortgage import Mortgage

# Instantiate class with custom mortage period and interest rate
value = 500000.0  # Propertry value
payment = 300000.0  # down payment on property
rate = 4.5
months = 150.0
property = Mortgage(value, payments, interest=rate, months=months)
# Print all attributes
print(property)
# Print specifc attribute
print(property.monthly_total)

Down Payment: $400000.00
Loan Amount: $200000.00
Primary Mortgage: $63986.77
Taxes: $580.00
Insurance: $210.00
Total Monthly Payment: $64776.77

64776.77

total_interest() → float[source]

Calculate the total amount of interest paid over the amortized period.

Example

from mortgage_calc.mortgage import Mortgage
home = Mortgage(600000.0, 400000.0, interest=3.15, tax=0.45)
interest = home.total_interest()
print(f"Total Interest: {interest:.2f}")

>> Total Interest: 109410.55

total_pmi() → float[source]

Calculate the total amount paid in Private Mortgage Insurance (PMI). Assumes PMI is paid until 20% equity is achieved.

Example

from mortgage_calc.mortgage import Mortgage

home = Mortgage(600000.0, 100000.0, interest=3.15, tax=0.45)
pmi = home.total_pmi()
print("Total PMI paid: {pmi:.2f}")

>> Total PMI paid: 10203.35

Affordable Home Value

mortgage_calc.mortgage.affordable_home_value(monthly_total: float, down_payment: float, interest: float = 7.145, months: float = 360, tax: float = 1.16, ins_rate: float = 0.42) → float[source]

Calculate the total value of a home that can be afforded based on a given monthly payment and down payment.

Parameters:

monthly_total – The total monthly payment, including tax and insurance but excluding PMI.
down_payment – The down payment for the home.
interest – The annual interest rate for the loan (defaulted to 7.145%).
months – The duration of the loan in months (defaulted to 360).
tax – The annual tax rate for the property (defaulted to 1.16%).
ins_rate – The annual insurance rate for the property (defaulted to 0.42%).

Returns:

The total value of the home that can be afforded.

Example

from mortgage_calc.Mortgage import affordable_home_value)

val = affordable_home_value(2815.21, 300000.0, months=360,
                            interest=7.145, tax=1.16)
print(f"Home Value: {val:.2f}")

>> 600000.00