Mortgage Payment Calculator
Are you looking to buy a new home? Would you like to estimate your monthly mortgage payments beforehand? A home is a large purchase so it’s important to find out on the front end the amount you could expect to pay on a monthly basis. You can use our mortgage payment calculator to easily estimate your monthly payment.
How Do I Use A Mortgage Payment Calculator?
Just enter the total amount (purchase price), the down payment, the interest rate, and amortization period (loan term). Then press calculate and our mortgage calculator does the rest! It quickly takes the guesswork out of knowing how much home you can afford.
When the calculator has shown your monthly payment, click on the graph icon next to the amount to view more details, such as:
- The number of payments
- The payoff date
- Principal amount
- Interest amount
With our advanced mortgage payment calculator, you can:
- Compare monthly payments for different home prices. Change the home price in the mortgage calculator to see how it affects your monthly payment.
- See how shortening or lengthening the loan term affects your monthly payment.
- Mix and match different factors based on the loan options you are considering.
- Vary the interest rate to see how much you might save or pay based on rate changes.
- Change the down payment to see how it would impact your monthly payment.
Using Our Home Loan Calculator
The dollar amount you expect to pay for a home.
This is the initial payment you put toward the cost of your new home. How much do you plan to put down? You could put little-to-no money down depending on your loan type. However, when you put down a higher down payment, it lowers your estimated monthly payment.
This is the cost of financing your home. The mortgage calculator has a preset interest rate of 5%. However, you can adjust this rate to see how it affects your monthly mortgage payment. Interest rates change daily based on market trends. Typically, your lender will determine your interest rate based on the perceived risk of lending you money to finace your home.
Here are some factors that influence their decision:
- Loan Type
- Credit History
- Loan Amount
- Down Payment Amount
How long do you plan to finance your home? A shorter-term loan will generally have a lower interest rate than a longer-term loan. On the other hand, a longer-term loan will offer a lower monthly payment.
Here are some of the common loan terms entered into the calculator:
- 15-Year Fixed Rate Mortgage – A home loan paid over a term of 15 years. It will have a higher monthly payment but a lower interest rate than a 30-year mortgage
- 30-Year Fixed Rate Mortgage – A home loan paid over a term of 30 years. It will have a lower monthly payment but a higher interest rate than a 15-year mortgage.
- I CAN Mortgage – A home loan that allows you to choose the term of your mortgage. You can finance your home for the number of years you want. You can enter 1, 5, or 10 years into the mortgage calculator to see how it would change your monthly mortgage payment.
Another Factor That Affects Your Mortgage Payment
Private Mortgage Insurance
If you enter a down payment of at least 20% of the home’s purchase price, Private Mortgage Insurance (PMI) will not be added to your monthly payment. For example, a 20% down payment on a $300,000 home is $60,000.
PMI is required if you make a down payment of less than 20% or if you have less than 20% equity when you refinance: it may be canceled once you exceed 20% equity.
PMI guarantees that the lender gets paid if the borrower defaults on the loan. PMI varies according to your credit score and the size of your down payment is usually an annual charge between 0.25% and 1.5% of the loan amount.