Mortgage Calculator

Basic Information

Loan Amount ($)

Annual Interest Rate (%)

Loan Term (Years)

Down Payment

Advanced Financial Features

Extra Payment

Balloon Payment ($) at End

Adjustable‑Rate Mortgage (ARM)

Refinancing Option

Tax and Insurance Features

Home Price ($)

Property Tax Rate (%)

Homeowners Insurance (Annual $)

HOA Fees (Monthly $)

Affordability and Budgeting

Monthly Income ($)

Monthly Debts ($)

Down Payment Savings Goal ($)

Monthly Savings ($)

Visualization Tools

Amortization Chart:

Educational and Support Features

Glossary of Terms

APR: Annual Percentage Rate

Amortization: The process of gradually paying off a loan.

PMI: Private Mortgage Insurance

Tips and Advice

Improve your credit score to secure a better interest rate.

FAQ

What is a balloon payment? A large payment due at the end of the loan term.

Integration and Export Options

Regulatory and Compliance Features

APR Calculation: Includes fees and other costs.

Good Faith Estimate (GFE): An estimate of closing costs and fees.

Mortgage calculation results will appear here.

Mortgage Calculator Guide

Mortgage Calculator: A Complete Guide

Buying a home is one of the most significant financial decisions you'll ever make. Understanding mortgage payments, interest rates, and loan terms is critical to effective budgeting and avoiding surprises.

What Is a Mortgage Calculator?

A mortgage calculator is an online tool that helps estimate monthly mortgage payments based on variables like loan amount, interest rate, and loan term.

How Does a Mortgage Calculator Work?

Mortgage calculators use a standard formula:

\[ M = \frac{P r (1 + r)^n}{(1 + r)^n - 1} \]

Where:

$ M $ = Monthly payment
$ P $ = Principal loan amount
$ r $ = Monthly interest rate (annual rate ÷ 12)
$ n $ = Total number of payments (loan term in years × 12)

Types of Mortgage Calculators

Basic Mortgage Calculator: Estimates monthly principal and interest payments.
Affordability Calculator: Determines how much house you can afford.
Refinance Calculator: Compares current mortgage terms with potential refinancing options.
Amortization Calculator: Generates a payment schedule.
Extra Payment Calculator: Shows how additional payments reduce interest and shorten loan term.

Example Calculation

For a home price of $400,000 with a 20% down payment:

$ P = 320,000 $
$ r = 0.06 $ annually ($ 0.005 $ monthly)
$ n = 30 \times 12 = 360 $

Monthly Payment:

\[ M = \frac{320,000 \times 0.005 (1 + 0.005)^{360}}{(1 + 0.005)^{360} - 1} \]

Why Use a Mortgage Calculator?

Budget Accurately: Avoid overextending finances.
Compare Loan Options: Find the best deal.
Plan for the Future: Understand how extra payments impact long-term savings.