Welcome to the Utah Mortgage Calculator page by New American Funding, where we provide a powerful tool to navigate the world of mortgages in The Beehive State. Whether you're a first-time homebuyer or considering refinancing, our Utah Mortgage Calculator is designed to offer valuable assistance tailored specifically to your state.
Using this calculator, you can 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 Utah 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 Utah real estate market.
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Source of Info PropertyPath
Utah Housing Market Overview
As of July 1, 2022, the Census Bureau estimated Utah's population to be 3,380,800, marking a 3.3% surge from the base population recorded on April 1, 2020. Over the past decade, Utah has witnessed remarkable growth, outpacing every other state in population increase since 2010. A significant portion of Utah's residents are concentrated in the cities and towns along the Wasatch Front.
However, the increase in population isn't limited to the Wasatch Front, other areas are also growing quickly. Especially noteworthy is the St. George metropolitan area, which is expanding very quickly. It's currently the second fastest-growing region in the entire country, surpassed only by the Las Vegas metro area.
It is important to note that the conditions of the housing market vary significantly in different locations throughout the state. The largest urban areas in the state are Salt Lake City, West Valley City, Provo, West Jordan, and Orem. Each of these cities, as well as the more rural areas of the state, has its own unique housing market conditions.
For instance, as of May 2023, the housing market in Salt Lake City, with its stunning mountain views and vibrant city life, has a median listed price of $600,000, while in St. George, located in the state's southern region known for its warm climate, the median listed price is $499,000.
The median number of days homes stayed on the market, known as DOM (Days on Market), was 46 days as of May 2023. This is less than the national average of 54 but is longer than this time last year. How long a home stays on the market indicates the competitive level of the housing market. When homes stay on the market longer, it gives buyers more time to negotiate for the home they want as well as more control over the process.
Utah 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 Utah Mortgage Payment
Compared to the fifty states, Utah ranks thirty-second in terms of the average amount of property taxes collected. The average effective property tax rate in Utah is .60%.However, property taxes vary by county, so your exact tax will depend on where in the state your property is located. Utah also offers various exemptions that borrowers may be able to qualify for, such as the Circuit Breakers Homeowner’s Credit and Indigent Abatement. The Armed Forces Exemption is also available for veterans with a disability and personnel with over 200 consecutive days of federal active duty outside of Utah, even if they acquire the property after January 1 in the year the relief is claimed.
The average effective property tax rate in Utah represents the percentage of the appraised value of a home that homeowners are required to pay in property taxes. This rate can vary depending on the local tax rates in different areas of the state. Each county in Utah conducts an annual assessment to determine the current market value of properties.
Private Mortgage Insurance
Our Utah 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. To better understand their specific PMI requirements and options, borrowers are encouraged to consult with their Loan Officer. 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 Utah, it is essential to consider the specific closing costs associated with the state. Closing costs are extra fees and expenses that are required when purchasing a home. These are in addition to the price of the property itself and usually include things like a property appraisal, lender fees, insurance, and the cost of a credit report.
Utah’s closing costs average between 2%-5% of the home’s overall purchase price. Utah 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 exact 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 Beehive State.
Typical Costs When Buying A Home in Utah
While homeowners insurance is not required by law in Utah, mortgage lenders usually require borrowers to have it in order to qualify for a home loan. This is because the home is used as collateral against the loan, putting lenders at risk if something happens to the property. Homeowners insurance in Utah averages $696 per year, which is 51.26% lower than the national average.
Insurance rates vary according to factors like geographic location and the buyer’s credit score, so what a homebuyer pays in Salt Lake City will likely be different than what they pay in Orem. Likewise, people with different credit scores are also likely to pay different amounts. A higher credit score can mean lower insurance rates, while a lower score can mean a buyer will pay more for insurance.
Homeowners can expect to pay approximately $300-$500 for a home inspection in Utah, depending on the specific services required. Additional fees may apply for certain services. Though it is not always required by your lender, a home inspection is recommended.
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 there are any issues that 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 Utah 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 Utah, 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 Utah to carefully review the terms and coverage of the home warranty before making a decision. Obtaining a home warranty could be beneficial as it 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 price of the property itself.
How To Calculate Your Utah 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.
Utah Jobs and Economic Factors
Utah's economy has been showing a positive trend, with a steady increase in its labor force and an unemployment rate of 2.3%. The private sector experienced a year-over-year expansion of 2.9%, with notable job gains in industries such as leisure and hospitality services, education and health services, professional/business services, and construction. The state's GDP growth for the first quarter of 2023 has been robust, in line with the national trend of increased real GDP across all 50 states.
Utah's strong economy offers abundant employment opportunities, with Teleperformance USA leading as the largest company in the state, with an impressive workforce of 300,000 employees. Other notable companies in Utah include Intermountain Healthcare, Wealth Generators Llc, Smith's Food and Drug, Brigham Young University, and SkyWest Airlines. As of 2023, the nonfarm wage and salary employment data shows a 2.9% increase over the past year, reflecting the state's ongoing economic progress.
State economies are affected by the same patterns as national ones. These can include changes in laws, international trade relations, and shifts in government. However, with its consistent growth in both employment and GDP, Utah is poised to maintain its economic vitality within the U.S. economy.