If you’re thinking about purchasing a new home, it’s essential to know the amount your mortgage payment will be. Our calculator can estimate your monthly payments based on information such as your home price, down payment and interest rate. You may also add costs like annual property tax, homeowners insurance and homeowner association dues for an even more comprehensive picture of expenses.
Calculating Your Monthly Payment on a Fixed-Rate Mortgage
With a fixed rate mortgage, you are committed to repaying the loan balance in full at the end of its term. This type of mortgage is often preferred over adjustable-rate options as you know your rate will remain constant throughout the entire duration.
Even with a fixed-rate mortgage, your payments may change over time due to amortization.
By paying down your loan, both the principal owed and interest charged will reduce over time, bringing down the total amount owed on the loan.
When considering your mortgage term, it’s essential to factor in how quickly you want to pay off the debt. On the other hand, if interest savings is a priority for you, then opting for a longer loan term could be more advantageous.
Calculating Your Monthly Mortgage Payment with a Fixed-Rate or Adjustable-Rate Mortgage
Are you trying to figure out your monthly mortgage payment using either a fixed rate or adjustable rate mortgage? Here is how:To calculate your monthly payment, start by filling out the form. In the top section, enter the amount of your down payment and mortgage interest rate. Next, click “Loan Term” from the dropdown box and select which loan term you would like to use.
Next, in the “Taxes, Insurance & HOA Fees” section, you’ll be asked for your location and other information. Additionally, if desired, additional payment amounts can be included if needed.
When selecting either a fixed rate or adjustable rate mortgage, you’ll also be asked to enter the “Term.” You usually have 15 to 30 year options and have the option of making either an initial down payment or increasing it over time.
A down payment is money you contribute at closing to reduce the size of a loan you take out. Doing this may increase your opportunities for getting competitive interest rates and lower monthly payments throughout the course of your mortgage.
Your down payment for a home may range anywhere from 3% to 20%, depending on the lender and loan terms. Many lenders provide programs with down payment levels as low as 5% of your property’s value, making this an appealing option for some borrowers.
On average, mortgage, property taxes and insurance should take up around 25% of your gross income each month; leaving plenty of room for other expenses. If you plan to have children in the near future, it might be beneficial to set aside some money each month towards their college tuition payments.