Business & Finance mortgage

How to Determine Taxes & Insurance on a Mortgage

By Business & Finance Last updated Thursday, April/18/2024

1). Contact your municipality or review your tax bill to determine your yearly taxes. If using your tax bill, the payment is on a quarterly basis, so multiply that total by 4 to derive your yearly total. Divide the yearly total by 12. This is your monthly tax payment. For example, if you pay $5,000 per year in taxes, you will pay $416.67 per month.
2). Contact your insurance company or review your homeowner's insurance policy to locate your yearly insurance premium. Divide this figure by 12 to determine your monthly insurance payment. For example, if you pay $500 per year in homeowner's insurance, your monthly payment is $41.67.
3). Add your monthly taxes and insurance to your monthly principal and interest payment on your mortgage. For example, if you pay $1,500 in principal and interest, $416.67 in taxes and $41.67 in insurance, your total monthly payment will be $1,958.34 including principal, interest, taxes and insurance.

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