Our Mortgage Calculator facilitates precise mortgage planning. Input loan specifics to compute monthly payments and access a detailed amortization schedule. Analyze total interest costs, payment components, and the impact of additional expenses such as property taxes and insurance. Results are generated instantly and adjustable for scenario analysis.

Mortgage Calculator

Mortgage Calculator

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Enter the total value/price of the home you want to purchase.
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Enter the amount you plan to pay upfront for the home.
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Enter the annual interest rate for your mortgage loan.
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Enter the length of your mortgage loan in years (typically 15 or 30).
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Select the date when your mortgage payments will begin.
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Choose whether to include additional costs like property taxes and insurance in the calculation.

Annual Tax & Cost

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Enter your annual property tax rate as a percentage of the home value.
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Enter your annual home insurance premium.
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Enter annual Private Mortgage Insurance cost (required if down payment is less than 20%).
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Enter monthly Homeowners Association fees if applicable.
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Enter any additional annual costs associated with the property.

Mortgage Terminology Overview

  • Home Value – The property’s purchase price or current market valuation.
  • Down Payment – The upfront payment made at purchase. A higher amount reduces monthly payments and may eliminate PMI requirements.
  • Interest Rate – The annual cost of borrowing, expressed as a percentage. Lower rates decrease monthly obligations.
  • Loan Term – The repayment period, typically 15 or 30 years. Shorter terms increase monthly payments but reduce total interest.
  • Property Taxes – Annual levies based on assessed property value, calculated as a percentage.
  • Home Insurance – Annual premium for property protection, mandated by most lenders.
  • PMI (Private Mortgage Insurance) – Required if the down payment is below 20%, safeguarding the lender against default.
  • HOA (Homeowners Association) Fee – Monthly charges for community upkeep in applicable properties.

Interpreting Results:

  • Mortgage Payment: Monthly principal and interest obligation.
  • Total Out-of-Pocket: Comprehensive monthly payment, including all ancillary costs.
  • Total Interest: Aggregate interest expense over the loan term.
  • Amortization Schedule: Annual breakdown of principal and interest allocation, illustrating loan balance reduction.

The amortization schedule reveals that early payments primarily cover interest, with principal reduction increasing over time.

Mortgage Payment Calculation

Understanding the mortgage payment formula enhances financial decision-making by clarifying the influence of key variables.

The monthly payment is determined by:
\(M = P\frac{r(1+r)^n}{(1+r)^n-1}\)

Where:

  • M = Monthly payment
  • P = Principal (loan amount)
  • r = Monthly interest rate (annual rate divided by 12)
  • n = Total number of payments (years × 12)

Example: For a $400,000 loan, 6% annual interest rate, and 30-year term:

  • P = $400,000
  • r = 0.06 ÷ 12 = 0.005
  • n = 30 × 12 = 360
\(M = 400,000\frac{0.005(1+0.005)^{360}}{(1+0.005)^{360}-1}\)

Result: $2,398.20 (principal and interest).


Additional Costs:

  • Property taxes and insurance increase the base payment.
  • PMI, if applicable, adds to the monthly cost.
  • HOA fees, where relevant, further adjust the total.

This base payment excludes escrowed costs like taxes and insurance, which elevate the total monthly obligation when included.

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