Our mortgage calculator helps you estimate your monthly mortgage payments. Here's how to use it effectively:

What You Need to Know

• Home Price: The purchase price of the home you're considering.
• Down Payment: The amount of money you plan to pay upfront. A larger down payment can reduce your loan amount and monthly payments.
• Interest Rate: The annual interest rate on your mortgage loan. This rate affects how much you'll pay over the life of the loan.
• Loan Term: The number of years you'll take to repay the loan. Common terms are 15, 20, and 30 years.
• Property Tax: Annual property taxes assessed by your local government.
• Home Insurance: Annual cost of homeowners insurance to protect your property.

How the Calculator Works

The calculator uses the standard mortgage payment formula to determine your monthly principal and interest payment:

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

• M = Monthly payment
• P = Principal loan amount
• i = Monthly interest rate (annual rate divided by 12)
• n = Number of monthly payments (loan term in years multiplied by 12)

Understanding Your Results

• Monthly Principal & Interest: The base monthly payment that goes toward repaying the loan amount and interest.
• Monthly Property Tax: Your annual property tax divided by 12.
• Monthly Home Insurance: Your annual insurance premium divided by 12.
• Total Monthly Payment: The combined monthly cost including principal, interest, taxes, and insurance (PITI).
• Total Interest Paid: The total amount of interest you'll pay over the life of the loan.
• Total Amount Paid: The sum of principal and interest paid over the life of the loan.

Tips for Getting Accurate Results

1. Use current interest rates for the most accurate estimate.
2. Include realistic property tax and insurance amounts based on your location.
3. Remember that this calculator provides estimates. Actual payments may vary.
4. Consider additional costs like private mortgage insurance (PMI) if your down payment is less than 20%.
5. Use the calculator to compare different loan scenarios to find the best option for your budget.

Common Mortgage Terms to Know

• Amortization: The process of paying off a loan with regular payments over time.
• PMI (Private Mortgage Insurance): Insurance required for loans with less than 20% down payment.
• Fixed-Rate Mortgage: A loan with an interest rate that remains the same for the entire term.
• Adjustable-Rate Mortgage (ARM): A loan with an interest rate that can change periodically.
• Principal: The original amount of money borrowed.
• Interest: The cost of borrowing money, expressed as a percentage of the loan amount.