There are so many options out there for calculating your mortgage payment with plugging in just a few figures; the loan amount, interest rate, and the life of the loan.

When it comes to mortgages from a renovation loan, like the FHA 203k Loan, the concept is the same but how we achieve the loan amount is a bit different. Typically, the loan amount is calculated by subtracting the down payment from the purchase price but when calculating the loan amount for a 203k Loan we must factor in the renovation costs. Below we’ve included an equation to provide a general calculation of a 203k loan amount, as well as, a list of average home renovation costs when considering estimations for your renovation budget.

To calculate the loan amount

Purchase Price + Renovation Budget + (Renovation Budget x 10%)= Loan Costs

Loan Costs x 3.5%= Down Payment

Loan Costs – Down Payment= Loan Amount

Loan Amount Calculation Example

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National Average of Home Renovation Costs as of January 2018

Bathroom Remodel                        $9,274

Install a Shower                                $3,096

Install a Bathtub                               $2,838

Kitchen Remodel                              $19,920

Install Cabinets                                 $4,621

Install Countertops                         $2,819

Sod the Yard                                       $1,709

Build a Deck                                       $6,919

Deck Repair                                        $1,379

Install a Roof                                      $6,626

Repair a Roof                                     $653

Install Flooring                                 $2,890

Install Windows                                $4,745

Paint Exterior                                     $2,575

Paint Interior                                     $1,656

New Pipe Install                               $1.134

Install a Septic Tank                       $4,583

Install Electrical Wiring                 $1,324

Calculating your monthly mortgage payment and other information is a bit more involved than the loan amount itself and if you don’t want to do all this calculating, we do not blame you one bit! We would be happy to assist you in figuring out these figures as well as assisting you in determining which loan is best suited for you and your circumstances. Visit us today at https://smcapproved.com/learn/fixerupper/ for more information on the 203k Fixer Upper Loan!