Purchase price

This is total sales price of your new home in whole dollars. This amount, less any down payment, will be the amount you borrow from your bank.

Down payment

Enter the percentage of the Purchase price that you plan to pay upfront. If, for example, you plan to make a $25,000 down payment on a $250,000 home, enter 10 here.

Mortgage term

Determine the number of years over which you'd like to pay your mortgage and enter it here. Common values are 10, 15, and 30.

Interest rate

Enter the actual interest percentage your bank will apply to the amount you borrow. Do not include any Private Mortgage Insurance (PMI) percentages your bank may require.

Property tax

Enter the yearly tax you'll pay on the value of your property.

Property insurance

Determine the yearly amount to insure your property and enter it here.

HOA fees

A homeowners association fee (HOA fee) is the amount of money that must be paid monthly by owners of residential properties.

PMI

If your down payment is less than 20% of your home's purchase price, your bank may require you to pay an additional yearly percentage of your home's purchase price in the form of Private Mortgage Insurance (PMI). If so, enter the PMI percentage here.

First payment date

From these drop-down menus, select the month and year that your mortgage payments will begin.

Amortization

Choose whether you'd like to see your mortgage payment schedule, including principal, interest, tax, insurance, PMI, and balance, on a yearly or monthly basis. If you don't want to see a detailed amortization schedule, choose don't show.

Doubtlessly, a good mortgage calculator is a highly efficient tool for calculating the payments on your recent mortgage. However, there is a series of other ways you can benefit from it. Let's find out them together:

• Calculating the ARM Risks
  From the first sight, an ARM (adjustable-rate mortgage) features quite attractive initial interest rates. And if for some borrowers this may be appropriate, others won't benefit from it. Even these low rates may appear too high for certain people. With the use of this calculator, a borrower can compare the payments of an ARM with those of a conventional mortgage. For this, it's recommended to set the term 30 years for both the ARM and the conventional mortgage. The results you get will either assert your expectations about the benefits of an ARM or make you realize its risks are higher than the potential benefits.
  Guided by the same principle, you may compare the cost of different mortgages depending on the term.
• Paying Off the Mortgage Earlier
  Most probably you already know that once you start paying additional money on your loan (whether on a monthly, yearly basis or only once), you will not only shorten your term but also save money. How much? Check this on the mortgage loan calculator.
  Additionally, inserting a higher amount of down payment in the mortgage calculator, you could watch the monthly payments go lower. The reason for such a benefit is that higher the down payment is the less you will need to borrow and the lower the interest rate will be.
• Cutting off the PMI
  Having made a down payment worth less than the 20% of the total sum, the borrower is obliged to buy Private Mortgage Insurance. The latter is quite expensive and the sooner you may get rid of it the better. However, this can't be done until you have 20% equity in the home at a minimum. To find out when you will have achieved this rate, make use of the PMI section of the mortgage calculator. By inserting the primary original amount of the loan, the down payment, as well as the closing date, you will receive all the necessary data including the PMI. Multiplying the original sum by 0.8 and matching the result with those the calculator showed you, you can guess particularly when you will have reached the 20% equity.
• Tracking Your Payments
  As a rule, a borrower's monthly payment is composed of several costs involving Principal and Interest, taxes and HOA fees, PMI and Property taxes. This reliable mortgage payment calculator will show you how much money out of your monthly payment goes on each segment.

1. Principal
   Principal is the price of the house the borrower needs a mortgage for with the down payment reduced. E.g., if the price of the house is $400,000 and you have made a down payment worth $50,000, your principal will be $350,000.
2. Interest
   To loan money, lenders charge a certain amount expressed as annual percentages. The latter is the interest.
3. Mortgage Insurance
   Mortgage insurance is aimed at protecting the interests of the lender in case the borrower fails to pay it. Anytime the borrower's down repayment is less than the 20% of the house's price, he is obliged to buy this insurance. The latter is canceled once the borrower's property equity increases to 20%.
4. Property Taxes
   A property tax is set by the government on every land/house on an annual basis.
5. HOA Fee
   Homeowners are obliged to pay the HOA fee to organizations dealing with the upkeep and improvements of the property, as well as the shared amenities.

• Extending the loan term;
• Obtaining a less expensive house and consequently applying for a smaller loan;
• Making a high down repayment (at least 20%) to avoid PMI and lower the interest.

• What do I need this mortgage calculator for?
  Making such a big and important purchase as a house or real estate, it's crucial to have a precise image how much you will end up paying for the house in case you apply for a mortgage. Due to this calculator, you may compute its cost over the entire lifespan of the loan.
• How can I calculate the mortgage amount?
  The basic component necessary for calculating the mortgage amount is the price of the house (the financial institution will determine how much to lend you taking into account your credit score, income, etc.). Inserting that price, your down payment, and the term, you will calculate the required amount.
• How long is the loan term?
  The frequency of the loan repayments forms the loan term. As a rule, they are to be made once a month. Yet, the borrower is free to pay more than demanded each month to pay off the loan quicker.
• What do I need this mortgage calculator for?
  Making such a big and important purchase as a house or real estate, it's crucial to have a precise image how much you will end up paying for the house in case you apply for a mortgage. Due to this calculator, you may compute its cost over the entire lifespan of the loan.
• What types of interest rates are there and which is better?
  The interest rate are either variable or fixed. The latter is beneficial in case the conditions of the market don't change over the time. Anyway, one can never guess how much movement a borrower might register on his variable interest rates, as the economic climate is unpredictable. The advantage of the fixed rate loan, meanwhile, is that the payments will never change irrespective of the market fluctuation.
• How much is the interest rate?
  Generally, interest rates range from as low as 1% to 8% and higher. In this mortgage calculator with all taxes provided, you will find the current interest rates.
• After having all the necessary data what should I do?
  Once you have all the information you've been seeking related to mortgages, it's time to apply for the loan and obtain your dream house.