Trustco Mortgage Calculator

Reviewed by David Chen, CFA | Community Banking Specialist | Last Updated: November 2023

Looking for low closing costs? Use this trustco mortgage calculator to estimate your monthly payments and explore the benefits of Trustco Bank’s unique portfolio loan options like the “Home Town Mortgage.”

Home Price

Please enter a valid home price.

Down Payment (Min 10% for Home Town)

Down payment cannot exceed price.

Interest Rate (r)

Please enter a valid interest rate.

Loan Term (n)

Years

Please enter a valid term (max 30 years).

Estimated Monthly Payment

$0.00

*Principal & Interest (No PMI typically required)

Trustco Mortgage Calculator Formula

Trustco Bank loans follow the standard amortization formula. However, a key difference is the potential absence of Private Mortgage Insurance (PMI) premiums in your monthly cost.

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

Source: Trustco Bank: Mortgage Products

Variables

M: Monthly P&I Payment.
P: Principal Loan Amount (Home Price – Down Payment).
i: Monthly Interest Rate (Annual Rate / 12).
n: Total Number of Months (Years × 12).

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What is Trustco Mortgage Calculator?

A trustco mortgage calculator is a tool tailored for borrowers considering Trustco Bank’s “Home Town Mortgage” program. Unlike many big-box lenders, Trustco is a portfolio lender, meaning they often hold their own loans rather than selling them to Fannie Mae or Freddie Mac.

This allows them to offer unique terms, such as no Private Mortgage Insurance (PMI) even with less than 20% down (often as low as 10% down), and significantly reduced closing costs. Using this calculator helps you see the “bottom line” monthly payment without the added burden of PMI.

How to Calculate Trustco Mortgage (Example)

Let’s simulate a “Home Town Mortgage” scenario:

Home Price: $300,000.
Down Payment: 10% ($30,000).
Loan Amount (P): $270,000.
Interest Rate (r): 6.0% fixed for 30 years.
Monthly Rate (i): 0.06 / 12 = 0.005.
Result: The monthly payment is approximately $1,618.79. With a standard lender, you might pay an extra $100-$150/mo for PMI, but with Trustco, this cost is typically avoided.

Frequently Asked Questions (FAQ)

Does Trustco require PMI?

Typically, no. One of the main features of Trustco’s “Home Town” mortgage product is that it does not require Private Mortgage Insurance (PMI), even with a down payment as low as 10%.

What are the closing costs with Trustco?

Trustco Bank is known for its low closing costs. They often charge a flat fee for settlement services rather than a percentage of the loan amount, potentially saving borrowers thousands at the closing table.

Does Trustco verify income?

Yes. While they are a portfolio lender with flexible terms, they still require full documentation of income and assets to ensure the borrower’s ability to repay the loan.

Is an escrow account required?

Yes, like most lenders, Trustco typically requires an escrow account for property taxes and homeowners insurance, especially if the down payment is less than 20%.