Mortgage Calculator

A mortgage calculator is a tool that helps potential home buyers determine how much they can afford to borrow when purchasing a home. The calculator takes into account the borrower’s monthly income, debts, and the current interest rate to calculate the maximum monthly mortgage payment the borrower can afford.

A mortgage is a loan that is used to purchase a home. The loan is secured by the home, and the borrower makes monthly payments to the lender. The monthly payments include interest and principal. The interest is the cost of borrowing the money, and the principal is the amount of money that is being borrowed.

Mortgages are typically paid over a period of 15 or 30 years, so it is important to think such a decision thoroughly. The shorter the loan term, the higher the monthly payments will be. One one hand that is a risky strategy from a cash-flow perspective, but on the other hand the less interest will be paid over the life of the loan. The longer the loan term, the lower the monthly payments will be, but more interest will be paid over the life of the loan.

The mortgage calculator below is from financial-calculators.com. It is a helpful tool at any stage, but especially when you are beginning the process of buying a home. You can use it to determine how much you can afford to borrow and give you an estimate of your monthly mortgage payment.

Mortgage Loan Calculator

Price of Real Estate?:

Down Payment Percent?:

Amount of Loan?:

Enter a “0” (zero) for one unknown value above.

Number of Payments? (#):

Annual Interest Rate?:

Points?:

Annual Property Taxes?:

Annual Insurance?:

Private Mortgage Ins. (PMI)?:

Payment Method?:

Monthly Payment Amount:

Down Payment Amount:

Total Interest:

Total Principal & Interest:

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Mortgage Calculator Help

You can calculate the mortgage loan amount from the price of the real estate by providing the down payment percentage.

If you know the mortgage amount you can afford and the cash down payment percentage required, you can calculate the affordable real estate price.

Or if you know the price of the real estate and the loan amout and enter “0” for the down payment percentage, the calculator will calculate the down payment amount and percentage.

Points, Annual Property Taxes, Annual Insurance and Private Mortgage Ins. (PMI) are all optional. If you enter values, the periodic portion of each will be calculated and shown on the schedule. Property taxes and insurance are combined under escrow.

If a borrower does not have cash to cover at least 20% of the purchase price, some lenders will require the borrower to purchase private mortgage insurance (PMI) to cover against a possible default. Premiums are typically 0.5% to 2.0% of the original loan amount. The borrower can drop the insurance coverage once the mortgage balance is less than 80% of the original purchase price. The calculator handles this automatically. (There may be other conditions as well under which the lender will no longer require PMI. One such case might be apprciation of the real estate.)

Points are charges that are normally due at closing. Borrowers (normally only in USA) may select to pay a lender “points” up front in exchange for a lower interest rate. Points are expressed in percent and are calculated on the amount borrowed. 3 points on a $200,000 mortgage equals $6,000. If the user enters points, this calculator includes their value in the summary and as part of the total payment at loan origination on the payment schedule.

The term (duration) of the loan is expressed as a number of months.

60 months = 5 years

120 months = 10 years

180 months = 15 years

240 months = 20 years

360 months = 30 years

Need more options including the ability to solve for other unknowns, change payment / compounding frequency and the ability to print an amortization schedule? Please visit, https://AccurateCalculators.com/mortgage-calculator

Currency and Date Conventions

All calculators will remember your choice. You may also change it at any time.

Clicking “Save changes” will cause the calculator to reload. Your edits will be lost.