Rhode Island Mortgage Calculator

Providence County has the lowest median monthly mortgage payment in Rhode Island at $2,610 compared to Newport County's highest at $4,160. These differences in mortgage payments can significantly affect both your short-term budget and long-term financial health, influencing your ability to save and invest for the future.

Using MoneyGeek's mortgage calculator in Rhode Island can help you estimate your monthly mortgage payment, determine which loan term suits your financial situation better, and see how much interest you pay over your loan's lifetime.

Mortgage Calculator

Simply estimate your Rhode Island loan payments, taxes and PMI.

Updated: Sep 4, 2024

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Home Price

Down Payment (20%)

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30-Year Fixed

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Optional: add taxes, insurance, HOA Fees

Principal & interest

Property tax

Homeowner's insurance

PMI

HOA fees

Total monthly payment

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Get personalized mortgage rates from Rhode Island.

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Key Takeaways

Providence County has the lowest median monthly mortgage payment at $2,610, while Newport County has the highest at $4,160 as of March 2024.

Using a mortgage calculator helps manage costs by finding a payment that fits your budget and estimating total interest over the loan's life.

The average APR for a 30-year mortgage in Rhode Island is 6.4%, and for a 15-year mortgage, it is 5.8%.

MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot to analyze rate information for Rhode Island. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless otherwise stated, all rates are annual percentage rates (APRs).

See the sources cited for more details about data related to median mortgage payments, home prices, down payments and local tax rates.

Interest rate data was last updated in September 2024.

SEE MORTGAGE CALCULATORS IN NEIGHBORING STATES

How to Use Our Rhode Island Mortgage Calculator

MoneyGeek's mortgage calculator in Rhode Island can help you calculate your monthly mortgage payments and determine your mortgage's affordability. You'll also understand your amortization schedule, giving you a clear financial path ahead.

Calculate Your Monthly Mortgage Payment

Your monthly mortgage payment is influenced by the home's sale price, down payment, and other factors. Use the Rhode Island mortgage calculator to understand your payment breakdown and plan your finances with precision.

1
Home Price
The home price directly influences your monthly mortgage payment in Rhode Island. A lower home price in Providence County, at a median of $447,010, results in lower monthly payments than in Newport County, where the median is $711,970, according to the National Association of Realtors.
2
Down Payment
The size of your down payment influences your monthly mortgage payment by reducing the loan amount. Rhode Island's median down payment is $82,000, according to ATTOM data from September 2024.
3
Annual Percentage Rate (APR)
Your Annual Percentage Rate (APR) impacts your monthly mortgage payment, with a lower APR resulting in lower payments. The current mortgage rates in Rhode Island change over time and vary between loan types. For example, the average APR for a 15-year fixed mortgage is 5.8%, and for a 30-year fixed mortgage, it's 6.4%.
4
Loan Terms
Shorter terms, like 15 years, often have higher monthly payments but result in less interest paid over the life of the loan. Conversely, a 30-year term typically has lower monthly payments but accrues more interest over time. Choosing the right term depends on your financial situation and goals.

SAMPLE MONTHLY PAYMENT CALCULATION IN RHODE ISLAND

Using the mortgage calculator in Florida, you can see that the monthly payment for a 30-year fixed rate mortgage on a house costing $275,000 with a 20% down payment in Florida is $1,376. This figure does not account for additional expenses such as HOA fees and property taxes.

Choosing a 15-year repayment term for your home loan changes your monthly payment to $1,833. While this increases your immediate monthly expenses, it leads to a total interest saving of $165,497 over the life of the loan, making it a financially advantageous option in the long run.

Determine Your Mortgage's Affordability

Buying a home is one of the most significant expenses you'll have, and your mortgage payments will take a substantial portion of your monthly income. Understanding your mortgage's affordability is crucial for managing your finances. MoneyGeek's mortgage calculator for affordability can help you determine how much you can afford by simply inputting your monthly income and other monthly debts, such as car loans and student loans.

The calculator also shows your debt-to-income ratio, a critical metric for borrowers. This ratio helps you understand how much of your income goes toward debt payments, which is essential when planning to secure a mortgage. According to Experian, the average debt in Rhode Island is $100,960, which translates to an average monthly debt of $8,413.

See Your Amortization Schedule

Mortgage amortization is the process of paying off a loan over time through regular payments.

Key terms:

Principal: The loan amount you borrow. Understanding this helps you see how much you owe.\
Interest: The cost of borrowing the principal.

Knowing this shows the total cost of your loan. MoneyGeek's mortgage calculator allows you to see your amortization schedule and estimate the total interest you'll pay over the life of your loan in Rhode Island. You can also see when your monthly payments begin to go more toward your principal versus your interest, which helps you understand your payment allocation over time.

Additional Mortgage Fees in Rhode Island

Home buyers in Rhode Island should consider additional mortgage fees that could impact their budget effectively. For example, mortgage insurance and HOA fees might increase your monthly payment. Property taxes and homeowners insurance are other costs to keep in mind.

Homeowners Insurance

Homeowners insurance protects your property and personal belongings from damage or theft. It also provides liability coverage if someone is injured on your property. The average homeowners insurance in Rhode Island is $1,650 per year.

Property Tax

Property tax is a levy on real estate that homeowners must pay to the local government. It funds public services like schools and infrastructure. According to the Tax Foundation, Rhode Island's effective property tax rate is 1.40%, ranking it 13th in the nation.

HOA Fees

HOA fees are payments to homeowners associations for property management, maintenance, and community amenities. These fees are typically paid monthly or annually.

Private Mortgage Insurance

Private mortgage insurance (PMI) protects lenders if a borrower defaults on a loan. It applies to conventional mortgages when the down payment is less than 20%. Borrowers must request cancellation once they reach 20% equity, or it will only be automatically removed at 22%.

How Much Is Private Mortgage Insurance in Rhode Island?

The average APR for a 30-year fixed loan in Rhode Island is 6.4%. For a 15-year fixed loan, it's 5.8%. Using MoneyGeek's PMI calculator, you can see that for a $275,000 home with a 10% down payment, borrowers with a credit score between 680 and 719 pay PMI worth $117 per month if they get a 30-year fixed rate loan. The amount becomes $115 if they opt for a 15-year loan instead.

MoneyGeek's mortgage calculator in Rhode Island allows you to see your amortization schedule and determine when you can stop paying for PMI:

1
Calculate your monthly mortgage payment
Input the necessary information, such as the home's price, down payment, and mortgage rate in Rhode Island. If you already know some fees you need to cover, such as property tax or HOAs, include these. If not, leave them blank but know that you'll still have to pay for these. Run the calculator and get your total monthly payment.
2
Calculate for your target equity
You can request that PMI be canceled when you've accumulated at least 20% equity in your home — this will be your target equity. To calculate your target equity, multiply your home's price by 20%.
3
Determine the remaining equity required
Your down payment already contributes towards the 20% equity you need to request your PMI's cancellation. Deduct your down payment from your target equity to get the remaining amount.
4
Establish a timeline
Go to the third tab of the mortgage calculator. Move the slider until the 'Principal Paid' exceeds your remaining equity required — that'll be the year you can stop paying for PMI.

Private Mortgage Insurance Calculator

Calculate your monthly private mortgage insurance (PMI) premium based on your credit score and down payment.

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Monthly Mortgage
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WHEN CAN YOU CANCEL YOUR PMI?

You put in an 8% down payment for a home in Rhode Island priced at $350,000. With an average APR of 6.4% for a 30-year fixed rate loan, your monthly mortgage payment is $2,014.

Twenty percent of $350,000 is $70,000 — that's how much I need in total to request my PMI's cancellation. Subtracting $28,000 (8% of $350,000) from $70,000 gives me $42,000 — that's how much I still need to pay to hit 20% equity. Assuming that my home's value remains the same over the years and that I consistently pay my mortgage, I can request my lender to cancel my PMI by Year 10.

How to Lower Your Monthly Mortgage Payment in Rhode Island

Your mortgage is probably the biggest expense you have each month. For a $225,000 loan in Rhode Island at 6.4% interest, you'll pay $1,376 monthly. However, if you can reduce your APR by 0.25%, your new monthly mortgage payment becomes $1,340. That $36 difference in monthly payment adds up — over a 30-year fixed-rate mortgage, you'll save $12,892 in total interest.

This example highlights the value of finding ways to lower your monthly mortgage payment. Here are some strategies to consider:

Improve your credit score

Your credit score affects your mortgage payment. In Rhode Island, if you put in a down payment between 5% to 20% of the home's sale price, the average APR for a 30-year fixed rate mortgage is 7.1% if your credit score is above 740. However, if your credit score is under 680, the average APR becomes 7.4%. This change in APR makes your monthly mortgage payments go from $1,478 to $1,523.

Save for a bigger down payment

Putting a bigger down payment may result in lower monthly mortgage payments. For a $225,000 loan in Rhode Island, putting 8% down makes your APR 7.2%, resulting in a monthly mortgage of $1,717. Increasing your down payment to 25% puts your APR at 6.8% and a monthly mortgage of $1,345.

Choose a longer loan term

A longer loan term affects your monthly mortgage payment. A 15-year fixed rate mortgage in Rhode Island has an APR of 5.8%. A 20% down payment makes your monthly mortgage payment $1,833. Compare this to $1,376, which you'll have to pay each month if you change loan terms to 30 years, even if your APR increases to 6.4%.

Explore homeownership assistance programs

You can find homeowners assistance programs in Rhode Island that may help with your mortgage costs. Institutions like Rhode Island Housing offer various forms of assistance to eligible homeowners.

FAQ: Mortgage Calculations in Rhode Island

Understanding how to use a mortgage calculator can raise questions for potential borrowers, especially in Rhode Island's housing market. We've addressed commonly asked questions about mortgage calculators to help you better understand your mortgage options.

How much mortgage can I afford in Rhode Island?

Your mortgage affordability in Rhode Island depends on your debt-to-income ratio (DTI). Generally, lenders prefer a DTI ratio below 36%.

What is the average mortgage debt in Rhode Island?

The average mortgage debt in Rhode Island is $220,470 as of 2023, according to Experian.

How much down payment do I need to purchase a house in Rhode Island?

The ideal down payment is 20%, but requirements vary. Conventional loans typically require 3% to 20%, FHA loans require 3.5%, and VA loans and USDA loans often don't require a down payment.

Do you really need private mortgage insurance in Rhode Island?

For a 30-year mortgage, PMI costs around $117 per month, and for a 15-year mortgage, it's about $115. PMI is typically required if your down payment is less than 20%.

What's the effective tax rate in Rhode Island?

Rhode Island's effective property tax rate is 1.40%, ranking 13th nationally.

What is the median home price in Rhode Island?

Median home prices vary by county. Providence County has the lowest median home price at $447,010, while Newport County has the highest at $711,970.

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