Mortgage Calculator
Amancalc.com
What is a Mortgage Calculator?
A mortgage calculator helps you estimate your monthly mortgage payment based on the loan amount, interest rate, and loan term. It's an essential tool for homebuyers to understand their financial obligations and compare different mortgage options.
This calculator uses the standard amortization formula to calculate your monthly payment, total amount paid over the life of the loan, and total interest paid. Understanding these numbers helps you make informed decisions about your home purchase.
Advantages of Using Our Mortgage Calculator
- ✓Accurate Calculations: Uses the standard amortization formula for precise results
- ✓Instant Results: Get your monthly payment and total costs calculated instantly
- ✓Free & Private: No registration required, all calculations are done locally
- ✓Compare Options: Easily compare different loan terms and interest rates
How to Use the Mortgage Calculator
- 1Enter Loan AmountInput the total amount you plan to borrow (principal).
- 2Enter Annual Interest RateInput the annual interest rate as a percentage (e.g., 3.5 for 3.5%).
- 3Enter Loan TermInput the loan term in years (typically 15, 20, or 30 years).
- 4View ResultsYour monthly payment, total payment, and total interest will be calculated automatically.
Understanding Mortgage Payments
Your monthly mortgage payment consists of:
- Principal: The amount borrowed that goes toward paying down the loan
- Interest: The cost of borrowing money, calculated on the remaining loan balance
- Property Taxes: Not included in this calculator but often escrowed with your payment
- Homeowners Insurance: Not included but often required by lenders
- PMI (Private Mortgage Insurance): Required if your down payment is less than 20%
This calculator shows principal and interest only. Your actual monthly payment may be higher when including taxes, insurance, and PMI.
Frequently Asked Questions
What's the difference between a 15-year and 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly less total interest paid over the life of the loan. A 30-year mortgage has lower monthly payments but more total interest. Use this calculator to compare both options.
Does this include property taxes and insurance?
No, this calculator shows principal and interest only. Your actual payment will likely include property taxes, homeowners insurance, and possibly PMI, which can add hundreds of dollars to your monthly payment.
How does a larger down payment affect my payment?
A larger down payment reduces your loan amount, which lowers your monthly payment and total interest paid. It may also help you avoid PMI if you put down 20% or more.
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