You can also see how shortening or lengthening the loan term (the time it takes to pay off the mortgage) affects the monthly payment. You can compare monthly payments for different homes at different prices. You can vary the loan amount to see how changing the size of your down payment would affect your monthly payment. You can vary the interest rate slightly to see the impact of rate fluctuations and how much you might save or pay more if rates change before you lock your rate. There are several ways to use the standard Mortgage Payment Calculator aside from simply determining what a mortgage refinance or a home purchase of a certain loan amount and interest rate will cost you. More ways to use the Mortgage Payment Calculator Pay that additional difference each month to the lender servicer and the loan will be paid off in 20 years instead of 30 years. Calculate the 30 year payment then change the term to 20 years and see what the payment difference is. (using that payment number to pay that additional amount to the lender servicer).įAQ: For example, you decide on a 30 year fixed rate loan and want to pay it off in 20 years. You can use this tool to calculate say a 10 year term or a 22 year term payment etc. Have you checked with your lender on these options? Customize Loan Terms for AffordabilityĮven if you decide to do a normal mortgage loan term such as a 30 year or a 15 year fixed rate mortgage, you can still use our calculator to run various scenarios on specific terms to see what that payment would be. For a more precise estimate, you can look up the “PMI rate charts” or “PMI rate tables” that many mortgage insurance companies maintain online.įAQ: There are other PMI options that include a slightly higher interest rate which eliminates monthly or annual PMI charges. There are other PMI options that include a slightly higher interest rate which eliminates monthly or annual charges. PMI varies according to your credit score and the size of your down payment, but is usually an annual charge of 0.5%-1.0% of the loan amount. You can get property tax information from the clerk’s office of the community the home is located in and an estimate for homeowner’s insurance from any insurance company. It’s ok to estimate these last three if you don’t have exact figures, but the more accurate these figures are, the more accurate your monthly mortgage payment calculation will be. Note that you can enter these either as a dollar amount or as a percentage of the loan amount. The last of these is used to determine if you need to pay for PMI or not, and if so, how long you will need to carry it.Ĭlick next, than on the next page, enter annual costs of: To use the Mortgage Payment Calculator, start by entering: Are you refinancing or purchasing a home? If so, this is a good way to change terms of a prospective loan length and learn what payment may work best for you. But you will need to prove current value.įAQ: Great tool for anyone refinancing or buying a home. (PMI is required if you make a down payment of less than 20 percent or have less than 20 percent equity when refinancing it may be canceled once you exceed 20 percent equity). If you do, it calculates the length of time you’ll need to have PMI based on the regular amortization of the loan, that is, over the course of time through making regular payments. It also takes into account property tax, homeowner’s insurance and private mortgage insurance (PMI) information to provide you with the most accurate calculation possible of what your mortgage payments would be.īecause you also enter the property value, the calculator can let you know if you’re going to need PMI or not. Our Mortgage Payment Calculator allows you to easily determine what your monthly payments would be on a fixed-rate mortgage of a given amount, length (term) and interest rate. Run some numbers and see what is comfortable for you.
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