This tool will help you estimate your monthly mortgage payments based on current rates.
How to Use the Mortgage Calculator
To use the mortgage calculator, fill in the following fields:
- Loan Amount: The total amount of money you will borrow for your mortgage.
- Interest Rate (%): The annual interest rate on your mortgage.
- Loan Term (Years): The number of years over which you will repay your mortgage.
- Down Payment ($): The amount of money you will pay upfront towards the purchase of your home.
- Property Tax Rate (%): The annual property tax rate for your area.
- Home Insurance ($/year): The annual cost of home insurance.
- HOA Fees ($/month): The monthly fee charged by your Homeowners Association (if applicable).
After filling in the required fields, press the Calculate button to see your estimated monthly mortgage payment.
How It Calculates the Results
The calculator uses the following formula to calculate your monthly mortgage payment:
Mortgage Payment (M) = P[r(1+r)^n]/[(1+r)^n – 1]
Where:
- M: Monthly mortgage payment
- P: Principal loan amount (loan amount minus down payment)
- r: Monthly interest rate (annual interest rate divided by 12)
- n: Number of payments (loan term in years multiplied by 12)
The total monthly payment displayed includes the calculated mortgage payment, monthly property taxes, home insurance, and HOA fees (if applicable).
Limitations
Please note that this calculator provides an estimate and does not account for all possible variables in your mortgage. Actual payments may vary based on additional factors such as private mortgage insurance (PMI), loan fees, and other costs associated with a mortgage.
Use Cases for This Calculator
Calculate Monthly Mortgage Payment
Enter the loan amount, interest rate, and loan term to instantly compute your monthly mortgage payment. This tool helps you estimate how much you need to set aside each month for your mortgage.
Determine Affordability
Input your annual income, monthly debts, and desired loan term to discover how much home you can afford based on current mortgage rates. Stay within budget and avoid overextending yourself financially.
Compare Mortgage Offers
Input multiple loan offers’ details to compare monthly payments and total interest costs. Easily identify the most cost-effective option and make an informed decision when selecting a mortgage lender.
Forecast Interest Savings with Refinancing
Enter your current loan details and potential refinance terms to see how much you could save on interest over the loan period. Make smarter financial decisions and optimize your mortgage strategy.
Analyze Amortization Schedule
Get a detailed breakdown of your mortgage payments over time, including how much goes towards interest and principal each month. Visualize how your loan balance decreases with each payment.
Calculate Total Interest Paid
Input the loan amount, interest rate, and loan term to determine the total interest you will pay over the life of the mortgage. Understand the long-term financial implications of your borrowing decisions.
Estimate Down Payment Savings
Adjust the down payment percentage to see how it affects your monthly payment amount. Explore various down payment scenarios to find the right balance between upfront costs and monthly affordability.
Plan Bi-weekly Payments
See how switching to bi-weekly mortgage payments can impact your payoff timeline and interest savings. Take advantage of this accelerated payment strategy to pay off your mortgage sooner.
Calculate Debt-to-Income Ratio
Enter your monthly income and debts to calculate your debt-to-income ratio and evaluate your borrowing capacity. Understand how lenders assess your financial health when applying for a mortgage.
Adjust for Extra Payments
Include extra payments in your mortgage calculation to visualize how additional amounts can shorten the loan term and reduce total interest paid. Take control of your repayment schedule and save money in the long run.