Monthly payment mortgage calculator how to#
How to calculate a mortgage paymentĪre you wondering how our mortgage calculator comes up with your monthly payment? You can calculate your monthly mortgage payment (excluding property taxes and insurance) using the following equation: For example, you might find that making a larger down payment than the minimum required will take more money out of your pocket today but save you a lot more over the next 10-15 years. With these inputs, you can use the calculator to help determine how much of a house you can afford and what your monthly payments and overall expenses will be. The higher the interest rate, the more your monthly payments will be, and vice versa. Interest rate: Your mortgage's interest rate is the amount your lender charges you for borrowing the money to purchase your home. The calculator uses a 30-year term as the default.
Shorter-term loans come with higher monthly payments and lower overall interest costs. Longer-term loans have lower monthly payments, but you'll pay more total interest. Length of the loan: The amount of time it takes to pay off your mortgage, known as the loan term, will have a big impact on cost and affordability. The calculator's default is 20%, which is what most financial experts recommend. They can be as low as 3%, depending on the loan type and your credit score. It will likely be more than your total loan amount, which will exclude the money you pay upfront toward the purchase.ĭown payment: Most mortgages require buyers to make a down payment. The purchase price of the home: This is the amount you agree to pay the seller. Here's what you'll need to estimate your mortgage payment with our calculator:
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