Welcome to the North Carolina Mortgage Calculator page, a powerful tool to navigate the world of mortgages in the Tar Heel State. Whether you're a first-time homebuyer or considering refinancing, our North Carolina Mortgage Calculator is designed to offer valuable assistance tailored specifically to your state.
Using this calculator can help you understand your financial commitments, estimate your monthly mortgage payments, explore different interest rates, and factor in important elements such as property taxes, private mortgage insurance, and closing costs.
This analytical tool empowers you to make informed decisions about your North Carolina mortgage, ensuring you have the knowledge and confidence to achieve your homeownership goals. Count on New American Funding to guide you on your path to success in the North Carolina real estate market. If you want to move to North Carolina, see First-time Homebuyer Guide for North Carolina. Also, see FHA Loan in North Carolina for details and requirements for a home in the state.
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North Carolina Home and Mortgage
Stats to Know
|Avg. Home Price
|Avg. Days on Market
Source of Info PropertyPath
North Carolina Housing Market Overview
In May 2023, the housing market in North Carolina experienced a 2.9% increase in home prices compared to the previous year, with a median selling price of $371,100. However, the median duration that homes remained on the market was 32 days, reflecting an increase of 8 days compared to the previous year.
As the real estate market cooled over 2022, the Triangle stands resilient, continuing its robust growth. According to the Kenan Institute's report on burgeoning metropolitan areas, the cities of Raleigh and Durham in the Triangle region secured a high rank on the American Growth Project, placing fourth among the fastest-growing cities in the United States As the Triangle attracts approximately 5,000 new residents each month, 2023 is poised to witness an enduring demand for housing, solidifying the region's status as a sought-after and dynamic real estate market.
The Research Triangle, renowned for its prestigious universities and thriving biotech industry, has become a hub of innovation and development. Ongoing projects valued at over $1 billion demonstrate the region's commitment to biotech advancements. This expansion solidifies the Triangle's position as a hotspot for biotech and attracts leading technology companies to the area.
North Carolina Mortgage Rates
Mortgage rates change daily and are affected by numerous factors. These can include the current state of the economy, the geographic location of your property, and changes in government laws and regulations. Keeping track of the current rates in your area can help you make more informed decisions regarding your mortgage journey.
Factors in Your North Carolina Mortgage Payment
Despite the variations across states, North Carolina boasts comparatively low property tax rates, with the present rate at .6760 compared to the national average of 0.99%. Furthermore, there has been a slight decline in the average property tax rate from the previous year of .6785, resulting in a reduction of 0.35%. Additionally, the state provides exemptions that may be available to people with disabilities, veterans, and senior citizens who fit specific criteria.
North Carolina's property tax operates on an "ad valorem" basis, calculated based on the property's value. To ascertain the property's value, a county assessor assesses it and must conduct a reappraisal every eight years at a minimum. This reappraisal aims to establish the property's current market value.
Private Mortgage Insurance
Our North Carolina mortgage calculator indicates that borrowers who make a down payment of less than 20% on a Conventional loan may be required to obtain private mortgage insurance (PMI). PMI protects the lender in case the borrower defaults on the loan. The cost of PMI premiums can vary significantly, ranging from 0.5% to nearly 6% of the loan principal. This variation depends on factors such as the amount of the down payment, the type of loan, the loan term, and the borrower's credit score.
Borrowers need to consider the potential impact of PMI on their overall mortgage expenses. While PMI can increase monthly payments, it may be canceled under specific conditions, such as reaching a certain loan-to-value ratio or making additional principal payments. Borrowers are encouraged to consult with their Loan Officer to understand their specific PMI requirements and options better. By doing so, they can make informed decisions and develop strategies to manage PMI effectively, ensuring a smooth and successful homeownership journey.
When purchasing a home in North Carolina, it is essential to consider the specific closing costs associated with the state. Closing costs are extra fees and expenses required when purchasing a home. These are in addition to the property's price and usually include things like a property appraisal, lender fees, insurance, and the cost of a credit report.
North Carolina's closing costs fall slightly below the national average at 1.1% of the sales price. North Carolina also splits the responsibility of closing costs between the buyer and the seller, so be sure to check with your Loan Officer to find out what actual payments will be expected of you.
Considering the closing costs and associated fees can help you make informed financial decisions and effectively plan for your dream of homeownership in the Tar Heel state.
Typical Costs When Buying A Home in North Carolina
In North Carolina, the average annual premium for homeowners insurance is $1,294, $134 less than the national average, making North Carolina slightly more affordable. It's important to note that individual rates can vary significantly based on specific factors unique to each situation, including the age and condition of the home, ZIP code, and other relevant considerations.
Every home is unique, and insurance companies evaluate each home individually when determining insurance rates. The specific characteristics of your home will influence the cost of your homeowners insurance, such as home and geographical location characteristics. Your credit history may also impact the amount you pay for homeowners insurance. A higher credit score can lead to lower insurance rates, whereas a lower score can result in higher insurance premiums.
Homeowners can expect to pay between $350 and $500 for a home inspection in North Carolina, depending on the property size and specific services required. Additional fees may apply for certain services. It's advisable to consider additional tests for mold, termites, radon concentrations, and infrared scans, as they provide valuable data for negotiating a fair asking price.
It is an important tool to help buyers understand the quality of the home they are purchasing and can help you plan or negotiate any needed repairs. Getting a home inspection also allows borrowers to gauge the accuracy of the seller’s asking price, giving them a platform to renegotiate if any issues might be costly to fix.
While the cost of a radon test or mitigation system is not typically included in the standard closing costs, it is an important consideration for buyers concerned about radon gas levels in their prospective homes. Buyers in North Carolina may want to include radon testing and mitigation as part of their home inspection process, considering the potential costs of these additional services. By addressing radon concerns early on, buyers can make informed decisions and ensure the safety and well-being of their future homes.
Home warranties are service contracts that cover repairs or replacements of major home systems and appliances. While home warranties are not typically included as part of standard closing costs in North Carolina, they are an option buyers can consider during home buying. The cost of a home warranty can vary depending on factors such as the coverage level and duration.
Including a home warranty in the closing costs would require negotiation and agreement between the buyer and the seller. It's important for buyers in North Carolina to carefully review the terms and coverage of the home warranty before making a decision. Obtaining a home warranty can provide financial protection against unexpected repairs or replacements of covered items in the home.
Title Insurance Premium
Lender’s title insurance is a common requirement by lenders for homebuyers. Some homebuyers also opt to pay for owner’s title insurance as well, since this will protect them personally against issues arising from title conflicts. Owner’s title insurance protects the homebuyer in case of title issues such as conflicting ownership claims of the property, outstanding lawsuits regarding the property, and fraud.
Lender’s title insurance protects the lender in a similar way. If the seller does not have the legal right to transfer the title to the property, the lender will be protected against potential financial losses. The title insurance premiums for both types will depend on factors like your geographic location and the property's price.
How To Calculate Texas Mortgage Payment
Calculating your mortgage payments may seem complicated at first. There are a lot of factors to consider when you start trying to figure out your mortgage. Each person has their own unique circumstances and financial goals to think about as you plan for your future.
Our mortgage calculator can simplify the process and help you take some of the guesswork out of planning for your dream home. Just input the necessary information into our calculator and you’ll be able to see various options. This information includes the home price, down payment amount, the ZIP code of the property, your credit score, and mortgage rate. There are also advanced options where you can compare various loan types and terms and factor in extra costs like home insurance.
North Carolina Jobs and Economic Factors
North Carolina's job market and economic outlook are influenced by substantial investments and growth in key sectors. Apple's commitment to investing over $1 billion in the state is a major catalyst for job creation and economic benefits. The company plans to construct a new campus and engineering hub in the Research Triangle area, which is expected to generate at least 3,000 new jobs in cutting-edge fields like machine learning, artificial intelligence, and software engineering. These investments by Apple are projected to contribute over $1.5 billion annually to North Carolina's economy.
Known as the second-largest banking center in the United States, Charlotte is home to major financial institutions such as Bank of America, Truist Financial, and Wells Fargo. The region's success extends beyond finance, with sectors like education, health, professional and business services, and manufacturing outperforming national averages. The planned $740 million multipurpose campus by Red Bull in neighboring Concord further bolsters the area's economic prospects.
Tourism contributes significantly to North Carolina's economy, with travelers spending over $33.3 billion on trips to and within the state in 2022. The Leisure and Hospitality industry holds the fifth-largest employment share as of March 2023. Over the past decade, this industry has displayed steady growth, adding over 105,000 jobs, a 25% increase since January 2013.
Significant investments from companies like Apple, robust job growth in finance, manufacturing, and leisure and hospitality, and the impact of global and regional economic conditions influence North Carolina's job market and positive economic outlook. These factors collectively shape the state's economic landscape and determine its employment prospects for the future.