## NHF Loan Calculator

### Results

## How to Use the NHF Mortgage Calculator

The NHF (National Housing Fund) Mortgage Calculator is designed to help you estimate your monthly and yearly mortgage payments, along with providing an amortization schedule. Here’s a step-by-step guide on how to use this calculator:

### Step 1: Enter the Purchase Price

**Purchase Price (₦):**Input the total purchase price of the property in Nigerian Naira (₦).

### Step 2: Enter the Down Payment

**Down Payment (₦):**Input the amount of down payment you plan to make. This value will be subtracted from the purchase price to determine the loan amount.

### Step 3: Select the Mortgage Term

**Mortgage Term:**Choose whether you want to input the term in years or months using the drop-down menu.**Input the value:**Enter the number of years or months for your mortgage term.

### Step 4: Enter the Interest Rate

**Interest Rate (%):**Input the annual interest rate for your mortgage.

### Step 5: Enter the Property Tax

**Property Tax:**Choose whether you want to input the property tax as a percentage of the purchase price or as a fixed amount.**Percentage (%):**Input the property tax as a percentage of the purchase price.**Amount (₦):**If you chose 'amount,' input the fixed property tax amount in Naira.

### Step 6: Enter the Property Insurance

**Property Insurance:**Choose whether you want to input the property insurance as a percentage of the purchase price or as a fixed amount.**Percentage (%):**Input the property insurance as a percentage of the purchase price.**Amount (₦):**If you chose 'amount,' input the fixed property insurance amount in Naira.

### Step 7: Enter the PMI

**PMI (Private Mortgage Insurance):**Input the PMI rate as a percentage. This is typically required if your down payment is less than 20% of the purchase price.

### Step 8: Select the First Payment Date

**First Payment Date:**Input the month and year when your first mortgage payment will be due.

### Step 9: Calculate the Mortgage

**Calculate:**Click the 'Calculate' button to compute the mortgage details.

### Step 10: Review the Results

The calculator will display the following results:

**Monthly Payment:**The total monthly mortgage payment, including principal, interest, property tax, insurance, and PMI.**Yearly Payment:**The total annual mortgage payment.

### Step 11: View the Amortization Schedule

**Show Amortization Schedule:**Click the button to display the amortization schedule. This table will show the breakdown of each payment over the term of the loan, including the amount applied to principal, interest, and the remaining balance.

By following these steps, you can effectively use the NHF Mortgage Calculator to plan and manage your mortgage payments. This tool is particularly useful for prospective homeowners looking to understand their financial commitments and make informed decisions.

Here's a simple guide on how to calculate PMI, property insurance, and property tax:

**How to Calculate PMI Monthly Payment**

Private Mortgage Insurance (PMI) is usually required if your down payment is less than 20% of the home's purchase price. To estimate your PMI payment:

**Determine Your Loan Amount:**Subtract your down payment from the home’s purchase price.**Find the PMI Rate:**This typically ranges from 0.3% to 1.5% of the loan amount annually, depending on factors like credit score and loan type. Check with your lender for the exact rate.**Calculate Annual PMI Cost:**

- Formula: (\text{Loan Amount} \times \text{PMI Rate})

**Divide by 12:**To get your monthly PMI payment.

- Formula: (\frac{\text{Annual PMI Cost}}{12})

**Example:**

- Home Price: $300,000
- Down Payment: $30,000
- Loan Amount: $270,000
- PMI Rate: 0.5% [

\text{Annual PMI Cost} = 270,000 \times 0.005 = 1,350

] [

\text{Monthly PMI Payment} = \frac{1,350}{12} = 112.50

]

**How to Calculate Property Insurance**

Property insurance protects against damages to your home and belongings. To estimate your insurance cost:

**Estimate Coverage Amount:**This is typically the replacement cost of your home and belongings.**Determine the Insurance Rate:**Rates vary widely, but an average is about $1 to $2 per $100 of coverage per year.**Calculate Annual Insurance Cost:**

- Formula: (\text{Coverage Amount} \times \text{Insurance Rate})

**Divide by 12:**To get the monthly premium.

- Formula: (\frac{\text{Annual Insurance Cost}}{12})

**Example:**

- Coverage Amount: $300,000
- Insurance Rate: 1.5 per $100 [

\text{Annual Insurance Cost} = \frac{300,000}{100} \times 1.5 = 4,500

] [

\text{Monthly Insurance Premium} = \frac{4,500}{12} = 375

]

**How to Calculate Property Tax**

Property taxes are usually based on the assessed value of your property. To estimate your property tax:

**Find the Assessed Value:**This is usually provided by your local tax authority.**Obtain the Local Tax Rate:**This is expressed as a percentage or millage rate (amount per $1,000 of assessed value).**Calculate Annual Property Tax:**

- Formula: (\text{Assessed Value} \times \text{Tax Rate})

**Divide by 12:**To get the monthly tax payment.

- Formula: (\frac{\text{Annual Property Tax}}{12})

**Example:**

- Assessed Value: $300,000
- Tax Rate: 1.2% (or 0.012 in decimal) [

\text{Annual Property Tax} = 300,000 \times 0.012 = 3,600

] [

\text{Monthly Property Tax} = \frac{3,600}{12} = 300

]

Feel free to adjust the numbers and rates according to your specific situation!

## What is the interest rate for NHF?

The interest rate for a National Housing Fund (NHF) mortgage in Nigeria is typically 6% per annum. This rate is relatively low compared to conventional mortgage rates, making NHF loans an attractive option for eligible borrowers.

## What is the maximum loan amount for NHF?

The maximum loan amount you can receive from the NHF is ₦15 million. This amount is intended to help cover the cost of purchasing, building, or renovating a home.

## Can I withdraw from my NHF?

Yes, you can withdraw from your NHF account, but this is usually subject to specific conditions. Withdrawals are generally permitted for purposes such as purchasing or constructing a home, but not for general personal use. Ensure you meet the criteria set by the Federal Mortgage Bank of Nigeria (FMBN) for eligible withdrawals.

## How much is interest on mortgage in Nigeria?

Mortgage interest rates in Nigeria vary depending on the lender and type of mortgage. For NHF loans, the interest rate is 6% per annum. However, conventional mortgage rates from commercial banks can range from 15% to 20% or more, making NHF mortgages a more affordable option for many borrowers.

## Who is eligible for an NHF loan?

Eligibility for an NHF loan includes the following criteria:

**Contributors:**You must be a contributor to the NHF scheme. This includes employees of both public and private sectors who have been contributing regularly.**Age:**Generally, applicants should be between 18 and 50 years old.**Employment Status:**You should have a stable source of income.**Home Ownership:**The loan is intended for Nigerians looking to buy, build, or renovate their homes.

Ensure you meet all the eligibility requirements set by the NHF and the Federal Mortgage Bank of Nigeria to qualify for an NHF loan.

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