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Using a Mortgage Calculator

By entering your qualifications—like purchase price, down payment, mortgage term, and interest rate—into a mortgage calculator, you can estimate your potential monthly payment. This tool provides a clearer picture of what you can afford and helps you make informed decisions.

Steps to Take in Home Purchasing: A Guide for Prospective Buyers in Guam Navigating the home buying process can seem overwhelming, but understanding key terms and steps can make it much easier. Here’s a breakdown to help you get started, estimate your monthly costs, and learn about helpful home-buying programs available in Guam.

Determine Your Purchase Price
1. Determine Your Purchase Price
  • What It Is: The total amount you agree to pay for the home, reflecting its market value.
  • Why It Matters: This price sets the foundation for your mortgage and influences your monthly payments.
2. Calculate Your Down Payment
  • What It Is: The upfront payment you make towards the purchase price, usually expressed as a percentage (e.g., 20%).
  • Why It Matters: A larger down payment can lower your mortgage amount and potentially eliminate Private Mortgage Insurance (PMI), reducing your monthly costs.
Calculate Your Down Payment
Choose Your Mortgage Term
3. Choose Your Mortgage Term
  • What It Is: The length of time to repay your mortgage, commonly 15 or 30 years.
  • Why It Matters: The term affects your monthly payment amount and the total interest paid over the life of the loan. A shorter term usually means higher payments but less interest overall.
4. Understand the Interest Rate
  • What It Is: The cost of borrowing, expressed as a percentage. Rates can be fixed or variable.
  • Why It Matters: The interest rate directly impacts your monthly mortgage payment. Lower rates mean lower payments, so it's crucial to shop around for the best deal.
Understand the Interest Rate
Factor in Property
5. Factor in Property Taxes
  • What It Is: Taxes levied by local governments based on your property's assessed value.
  • Why It Matters: These taxes are typically included in your monthly mortgage payment and can vary widely, affecting your overall budget.
6. Include Property Insurance
  • What It Is: Insurance that protects your home and belongings from damage or loss.
  • Why It Matters: Lenders often require property insurance, and its cost should be factored into your monthly payment calculation.
Include Property Insurance
Consider PMI (Private Mortgage Insurance)
7. Consider PMI (Private Mortgage Insurance)
  • What It Is: Insurance that protects the lender if you default on your loan, usually required for down payments less than 20%.
  • Why It Matters: PMI adds to your monthly costs, so knowing whether you’ll need it helps you budget effectively.
8. Know Your First Payment Date
  • What It Is: The date when your first mortgage payment is due, typically one month after closing.
  • Why It Matters: Understanding this timeline helps you plan your finances as you transition into homeownership.
Know Your First Payment Date

Guam Home-Buying Programs

Guam offers several programs to assist prospective home buyers:
  • Guam Housing Corporation (GHC) Programs: These programs provide various financing options, including low-interest loans and down payment assistance to first-time homebuyers.
  • Federal Housing Administration (FHA) Loans: These loans are available to buyers in Guam, allowing for lower down payments and more flexible credit requirements.
  • VA Loans: Available for eligible veterans and active-duty service members, these loans typically require no down payment and offer competitive interest rates.
  • First-Time Homebuyer Programs: Check with local banks and the GHC for programs specifically aimed at first-time buyers that can provide financial assistance and education resources.