Mortgage Calculator

Calculate a monthly mortgage payment and other financial details when applying for a home loan.

How to use the Mortgage Calculator

Use our mortgage calculator to determine the following financial details for a home loan:

  • Monthly payment
  • Down payment
  • Total interest over the life of the loan
  • Total principal & interest over the life of the loan

The calculator will also create an amortization schedule and charts.

The Payment Method refers to whether the lender uses the start of period or end of period to determine when your loan is due. There’s usually a slight difference in how much you pay monthly based on the payment method. If unsure, choose End-of-Period.

Once you’ve entered all required inputs, just click the Calc button at the bottom of the calculator.

For additional explanation, click the Help button.

Additional options:

  • Click the $ sign at the bottom of the calculator to change the currency
  • Click mm/dd/yyyy to change the date format
  • Click the + or to increase or decrease the size of the calculator
  • Click Print to print a screenshot of the calculator with your inputs and their results
  • Click Schedule to see a detailed loan payment schedule based on your inputs
  • Click Charts to see three graphs that visually represent your loan payments over time
Enter a "0" (zero) for one unknown value above.

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How a mortgage calculator can help you

Buying a house is a significant financial decision, and understanding the financial implications is important. One valuable tool that can aid you in making a smart decision about buying a house is a mortgage calculator. This handy online tool can provide you with essential insights into your potential mortgage. It can also help you assess how much you can afford so you can plan your finances effectively.

Here are five key points explaining how a mortgage calculator can help you in the home-buying process:

  • Budget Assessment: A mortgage calculator allows you to input your desired loan amount, interest rate, and loan term, enabling you to calculate your monthly mortgage payments. This helps you determine if the house you’re considering fits within your budget and ensures you can comfortably make those payments.
  • Variety of Scenarios: You can experiment with various scenarios by adjusting the loan amount, interest rate, and term to see how different combinations affect your monthly payments. This flexibility empowers you to tailor your mortgage to your financial situation and long-term goals.
  • Understanding Interest Costs: Mortgage calculators will show you your total interest costs over the life of the loan. This allows you to see how much of your monthly payment is going towards building equity (principal) and how much is spent on interest. This insight can help you decide whether to make extra payments to reduce interest costs over the life of the loan.
  • Comparison Shopping: When shopping for a mortgage, you can use the calculator to compare different loan offers from various lenders. By inputting the terms offered by each lender, you can quickly identify the most cost-effective option and potentially save thousands of dollars over the life of the loan.
  • Financial Planning: Mortgage calculators also provide a long-term view of your financial commitment, which can help you plan for future expenses or investments accordingly. This helps you make an informed decision about whether buying a house aligns with your overall financial goals.

Incorporating a mortgage calculator into the home-buying process can provide clarity and confidence in your decision-making process, ensuring that you make a smart and financially sound choice when investing in a new home.

Typical costs of a mortgage loan

When securing a mortgage loan to purchase your dream home, it’s essential to have a comprehensive understanding of the associated costs. Beyond the purchase price of the house itself, a mortgage loan involves several other expenses that can significantly impact your financial planning.

Here is a list of the typical costs of a mortgage loan:

  1. Down Payment: One of the most substantial upfront costs is the down payment, which is a percentage of the home’s purchase price that you pay upfront. The amount varies but is typically around 20% of the home’s price. A larger down payment can lead to lower monthly mortgage payments.
  2. Interest: Interest is the cost of borrowing money from the lender and is a significant part of your mortgage expense. The interest rate is determined by various factors, including your credit score, loan term, and current market conditions.
  3. Principal: The principal is the amount you borrow to buy the home. Over time, as you make mortgage payments, you reduce the principal balance, which builds equity in your home.
  4. Property Taxes: Property taxes are fees imposed by local governments based on the assessed value of your home. These taxes typically vary by location and can be a significant ongoing expense.
  5. Homeowners Insurance: Lenders typically require you to have homeowners insurance to protect against damage or loss of your property. The cost of insurance can vary based on factors such as the location of your home and the coverage you choose.
  6. Private Mortgage Insurance (PMI): If your down payment is less than 20% of the home’s purchase price, you may be required to pay PMI. PMI protects the lender in case you default on your loan and can add to your monthly costs.
  7. Closing Costs: These are fees associated with the closing of your mortgage loan and can include appraisal fees, title insurance, attorney fees, and more. Closing costs typically range from 2% to 5% of the loan amount.
  8. Home Inspection: While not always required, a home inspection is highly recommended to identify any potential issues with the property. The cost of a home inspection can vary but is usually paid by the buyer.
  9. Escrow Account: Some lenders require you to establish an escrow account to cover property taxes and homeowners insurance. Money is set aside from your monthly mortgage payment to pay these expenses when they come due.
  10. Loan Origination Fees: Some lenders charge fees for processing your mortgage application, known as loan origination fees. These fees can vary among lenders.
  11. Prepayment Penalties: It’s important to check if your mortgage has prepayment penalties. These penalties can apply if you pay off your mortgage early or make extra payments beyond a certain limit.
  12. Homeowners Association (HOA) Fees: If your home is in a community with an HOA, you’ll have recurring fees for shared amenities and maintenance. These fees can vary widely.

Understanding these typical costs associated with a mortgage loan is helpful for effective financial planning when buying a home. Be sure to factor in all of these expenses to determine your overall affordability and ensure a smooth home-buying process.

Strategies to reduce your monthly payment

A mortgage calculator can also be useful in determining how you can lower your monthly mortgage payment. Here are 5 strategies to consider:

  1. Refinance Analysis: Use a mortgage calculator to assess the impact of refinancing your current mortgage. By inputting the new loan amount, interest rate, and term, you can compare the potential monthly payments with your existing mortgage. If the new terms result in lower monthly payments, refinancing may be a viable option to reduce your expenses.
  2. Adjust the Interest Rate: Experiment with different interest rates in the mortgage calculator. If you have a good credit score or can negotiate a lower interest rate with your lender, you may be able to significantly reduce your monthly payments. Lowering the interest rate can lead to substantial savings over the life of the loan.
  3. Extend the Loan Term: Extend the loan term using the calculator to see how it affects your monthly payments. While a longer loan term may result in smaller monthly payments, it’s important to understand that you’ll pay more in interest over time. This option can be useful if you need immediate relief from high monthly payments but want to consider the trade-offs carefully.
  4. Increase the Down Payment for a Purchase: If you’re in the process of buying a home, use the mortgage calculator to determine how a larger down payment impacts your monthly mortgage payments. A larger down payment reduces the loan amount and can lead to lower monthly costs, potentially helping you avoid private mortgage insurance (PMI) as well.
  5. Make Extra Payments: While the primary purpose of a mortgage calculator is to calculate standard monthly payments, you can also use it to explore the effects of making extra payments. By increasing your monthly payment or making occasional lump sum payments towards the principal, you can shorten the loan term and reduce the total interest paid, which, in turn, lowers future monthly payments.

Remember that each of these strategies has its advantages and trade-offs, and what works best for you depends on your financial goals and circumstances. Consulting with a mortgage professional or financial advisor can help you make informed decisions tailored to your specific needs and objectives.

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