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
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:
- “M“ is your monthly payment.
- “P“ is the principal loan amount (Home Price – Down Payment).
- “r“ is your monthly interest rate (Annual Interest Rate divided by 12).
- “n“ is your number of monthly payments (Term in years * 12).
Compound interest is when you earn money (interest) on both the original amount you put…