amortization mortgage calculator by payment amount

#Amortization mortgage calculator by payment amount how to

With a 30-year term, your monthly payments will be lower, but you'll pay more in the long run since you're spreading payments out over a longer period of time. Input a few term lengths to figure out which one best fits your budget. This can help you decide if you're ready to buy now, or if it makes more sense to wait a little longer to save more. The calculator also shows how a higher or lower down payment will affect your monthly mortgage payments. If the monthly payment is too high for your current budget, you may decide that you need to buy a less expensive home. Together, these numbers reveal how much you need to borrow. With our mortgage calculator, you can enter how much you want to spend on a home and the amount you have for a down payment. Determine how much house you can afford.You've entered numbers into the mortgage calculator - so what can you do with this information? If you don't already have these numbers but want to get an idea of what you'll pay total every month, see the average property taxes in your state here and the average cost of homeowners insurance by state and home value here. Once you calculate M (monthly mortgage payment), you can add in the monthly property tax and homeowners insurance payment. If you have a 30-year mortgage, multiply 30 by 12 to get 360 months. To find 'n,' the number of months required to repay the loan, multiply the number of years by 12. If your interest rate is 4.25%, divide 0.0425 by 12 to find your monthly rate: 0.00354166%. The lender provides the yearly interest rate, so divide that rate by 12 for this equation.

This is different than the interest rate you see on your mortgage documents. Prefer to do it by hand? You can calculate your monthly mortgage payment (excluding property taxes and insurance) using the following equation:

#Amortization mortgage calculator by payment amount how to

You may see this full mortgage payment amount referred to as 'PITI.' How to calculate a mortgage payment If you made a small down payment or you have an FHA mortgage, a small portion of your monthly payment will also go toward a mortgage insurance premium, which protects the lender.

Insurance: As with property taxes, your homeowners insurance premium will also be included in your monthly payment and set aside in an escrow account.

When the taxes come due, the lender will pay them on your behalf using the money in the escrow account.

Taxes: Mortgage lenders typically include your property taxes in your monthly mortgage payment and hold this part of your payment in an escrow account.

Interest: This is what the bank charges you to borrow money.

You'll pay a portion of this each month, reducing your principal balance over time. For example, if you want to buy a $400,000 home and have $50,000 for a down payment, you'll need to borrow $350,000.

Principal: This is the amount you borrow to buy your home.

This mortgage calculator shows you how much you'll pay toward your principal and interest each month, but your actual mortgage payment will likely include a couple other charges. You'll also get some tips on exactly how you can save on interest. 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.Ĭlick on 'more details' to see how much you might pay in interest over the life of your loan, and how different rates and term lengths can impact that amount. 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 mortgage 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 the amount you'll need to put down if you want to avoid paying for private mortgage insurance. 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. To estimate your mortgage payment with our calculator, here's what you'll need to provide:

Paying an additional $500 each month would reduce the loan length by 146 months.

Lowering the interest rate by 1% would save you $51,562.03.

Paying a 25% higher down payment would save you $8,916.08 on interest charges.