![]() ![]() The formula behind paying down a mortgage is complex, but it can be handy. You can also toggle between the annual and monthly view to see a breakdown of each monthly payment.īreaking Down the Mortgage Payment Formula Navigate to the amortization schedule tab to view how much of your annual payments will go toward interest and principal. This portion of the calculator lets you view your monthly payments as well as your estimated payoff month. Once you enter all of the relevant information on the left side of the screen, the calculator will auto-populate your payment breakdown on the right. If you don’t have these numbers in front of you, some information may be available through your real estate agent or your local property assessor’s website. If you have the information available, plug in your monthly property tax, private mortgage insurance (PMI), homeowners insurance and HOA fees. This portion of the calculator is optional, but it can help give you a more accurate picture of your potential monthly payments. Add in taxes, insurance and homeowners association (HOA) fees.If, instead, you want a balance between low monthly payments and a shorter term, you can use this portion of the calculator to compare your options. For example, if you choose a 15-year term, use the average rate for a 15-year mortgage. If you haven’t been approved for a loan term and interest rate, the rate you select here should correspond with the average rate you entered above. To help calculate your monthly mortgage payment, enter a loan term up to a maximum of 30 years. If you haven’t prequalified for an interest rate yet, you can enter the current average mortgage rate as a starting point. If you’ve already shopped around for a loan and have been offered a range of interest rates, enter one of those values into the interest rate box on the left. Next, add the down payment you expect to make as either a percentage of the purchase price or as a specific amount. And if you’re considering making an offer on a home, this calculator can help you determine how much you can afford to offer. If you don’t have a specific house in mind, you can experiment with this number to see how much house you can afford. Start by adding the total purchase price for the home you’re seeking to buy on the left side of the screen. Whether you’re shopping around for a mortgage or want to build an amortization table for your current loan, a mortgage calculator can offer insights into your monthly payments.įollow these steps to use the Forbes Advisor mortgage calculator: If you are unsure what to include here, talk to our agents and we can help.How to Calculate Mortgage Payments Using Our Calculator Taxes: This is where you woudl include your annual home owners tax amount.This calculator does not account for either PMI or HMI. Insurance: This is where you would include your annual home owners insurance premium. ![]() This calculator does not account for either. Note: If you put less than 20% down, you are likely going to need to include PMI/HMI in your payment. ![]() Certain programs might be available for less down, but this calculator requires at-least 3% down. Down Payment: A minimum of 3% down is required for a mortgage loan.Most loans are paid back in 15 or 30 years. Amortization: This is the period in which your loan is paid back.Note: your actual rate may be different depending on your overall credit profile Rate: The estimate interest rate you expect to get (or have been quoted by our agents) for your loan. ![]() Purchase Price: The amount you plan on paying for the home. ![]()
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