Mortgage Calculator : Plan Your Home Purchase with Confidence

Before engaging in a home or property purchase, it is generally recommended by financial advisors to know your monthly payments if you are taking a mortgage loan. Using a Mortgage Calculator is a vital step you shouldn’t skip.

This Mortgage Calculator offers a comprehensive overview of your potential monthly payments, down payments, and more.

Mortgage Payment Calculator

? This is the purchase price of the home you are looking to buy.
? This is the initial sum of money you pay upfront. You can enter it as a specific amount or as a percentage of the home price.
? This is the annual rate charged by the lender to borrow the loan amount.
? This is the total duration (in years) over which you will repay the mortgage.
? Private Mortgage Insurance (PMI) is typically required when the down payment is less than 20%. You can enter the PMI as a specific amount or as a percentage of the loan amount.
? This is the annual tax levied on your property. You can enter it as a specific amount or as a percentage of the home price.
? This is the annual insurance premium to protect your home against damages.

Results

Your Monthly Payment Is:

Down Payment:

Total Principal Paid:

Total Interest Paid:

Total Tax Paid Over Loan Term:

Total Home Insurance Paid Over Loan Term:

Estimated Payoff Date:

Total Number of Payments:

Total Payments (Including Taxes, Insurance, PMI):

Example Scenario for Mortgage Calculation

Imagine purchasing a charming home priced at $400,000. With a 20% down payment of $80,000, the mortgage amount is $320,000. Opting for a 30-year fixed-rate loan at an interest rate of 3.5%, the monthly principal and interest payment is calculated at approximately $1,436.26. Adding annual property taxes of $4,000 and home insurance of $1,200, the total monthly payment becomes around $1,870.28. This example demonstrates how various factors influence your monthly mortgage expenses, helping you plan your budget effectively.

Calculation Breakdown

Home Details:

Home Price: $400,000

Down Payment: $80,000 (20%)

Loan Details:

Loan Amount: $320,000

Interest Rate: 3.5% (Annual)

Loan Term: 30 years

Monthly Calculations:

Principal and Interest Payment:

Monthly Interest Rate = 3.5% / 12 = 0.002917

Monthly Payment = 320,000 * 0.002917 * (1 + 0.002917)^360 / ((1 + 0.002917)^360 - 1) ≈ $1,436.26

Property Tax:

Annual Property Tax = $4,000 → Monthly Property Tax = $333.33

Home Insurance:

Annual Home Insurance = $1,200 → Monthly Home Insurance = $100

Total Monthly Payment:

Total Monthly Payment = $1,436.26 + $333.33 + $100 = $1,870.28

Summary:

With a 20% down payment on a $400,000 home, a 3.5% interest rate over 30 years, and including property tax and home insurance, the total monthly mortgage payment is approximately $1,870.28. This breakdown helps you understand how different components contribute to your overall monthly payment, aiding in effective financial planning. Use the calculator above to see the full breakdown

Mortgage Loan Formulas and Calculations:

Monthly Mortgage Payment:

A monthly mortgage payment is the amount you are required to pay to the lender every month until the mortgage is fully paid off. This payment primarily covers the loan principal and the interest, but it often includes other costs like property taxes, homeowner’s insurance, and possibly homeowner’s association (HOA) fees or private mortgage insurance (PMI).

M = (P * r * (1 + r)n) / (1 + r)n – 1

Meaning Of Formular’s Variables:

  • is your monthly payment.
  • is the principal loan amount (Home Price – Down Payment).
  • is your monthly interest rate (Annual Interest Rate divided by 12).
  • is your number of monthly payments (Term in years * 12).