A mortgage calculator helps you estimate your monthly mortgage payments for home loans. By entering the home price, down payment, interest rate, and loan term, you can instantly calculate your monthly payment, total interest, and total payment. This tool is essential for home buying planning and understanding mortgage affordability.
The mortgage payment is calculated using the standard formula:
M = P × [r(1+r)n] / [(1+r)n - 1]
Where:
Total Monthly Payment = Principal & Interest + Property Tax + Home Insurance
A mortgage is a loan used to purchase real estate, with the property serving as collateral for the loan.
A down payment is the upfront cash payment made by the buyer, with the remainder financed through a mortgage loan.
PMI is insurance that protects the lender if the borrower defaults, typically required when down payment is less than 20%.
Higher interest rates increase monthly payments and total interest paid over the loan term.
Fixed-rate mortgages have constant interest rates, while adjustable-rate mortgages can change periodically based on market conditions.
Closing costs are fees associated with finalizing a mortgage, including appraisal, title insurance, and attorney fees.
Generally, you can afford a home worth 2-3 times your annual household income, considering your debts and credit score.
APR (Annual Percentage Rate) includes the interest rate plus other costs, providing a more accurate cost comparison between loans.
Yes, most mortgages allow early repayment, though some may have prepayment penalties.
Missed payments can result in late fees, credit score damage, and potential foreclosure if not resolved promptly.