Mortgage and Amortization Calculator

This calculator will show you the amortization schedule and breakdown of your payments made towards a home loan.

Purchase Price: info
$
Interest Rate: info
%
Down Payment: info
%
Term: info
Years

Calculations by this calculator are estimates only. There is no warranty for the accuracy of the results or the relationship to your financial situation.

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Mortgage Calculator

Purchasing a home is an exciting event that shouldn’t be rushed into. While it is easy to get caught up in the moment, it is important to remember taking out a mortgage is a big commitment, not to be taken lightly.

When shopping for a home, and home loan, the best bet is to take your time, due your due diligence, and make sure you’ve gone over all the facts and figures before signing on the dotted line.

With that in mind, a mortgage calculator can be a priceless tool during your preparation phase and also throughout your mortgaging process. Whether you are trying to figure out what price point you can afford, how much your monthly payments will be, or what kind of savings you’ll gain from different interest rates or down payments, this easy to use tool can help you find the answer within seconds.

How important is it for you to get your calculations right when getting your home?

The thrill and that comes with purchasing a home is totally normal, but it can make it very easy to forget the little things that can make a big difference.

For example, have you thought about the cost of decorating your home? How much you can expect to pay each month towards your mortgage. If you would be affected by adjustable mortgage rates?

Keep in mind besides your monthly payments, it is wise to factor in other cost that may be unexpected. These include: property taxes, insurance, maintenance, home owner association fees, and more.

With a good mortgage calculator, and by asking for this information during your house hunting adventure, you’ll be able to get a realistic outlook of your total overall payments, but also give you an idea of how your amount may be affected by a change in interest rates and other factors.

What Is A Mortgage Calculator?

A mortgage calculator is just like a regular calculator but design specifically to take in all the variable associated with home purchase and financing, and make sense of it all. The more information you can put in, the more accurate your readings will be.

Let’s say you want to know how much your monthly payments will be affected if you choose to put down 15% instead of 10. Perhaps you received two different interest rates quotes and want to know exactly how much you would be saving by going with the lower rate. These are all things a mortgage cal can help with.

Does A Mortgage Calculator Work?

Yes, they do, but just like with regular calculators, some are more advanced than others. Remember, the more information you can put in, the more accurate your results.

A basic calculator will ask you to provide the total home value, down payment, and interest rates.  For more precise results, consider a calculator that provides an option beyond the basic information. Select one that includes factors such as closing cost, PMI, and homeowner association fees.

What Are The Benefits Of A Mortgage Calculator?

1.    Accurate information

Most of us can agree that it can be difficult to do complex math calculations without any assistance. Using a mortgage calculator, you will be guaranteed of 99.9% accuracy as long as you provide accurate information.

2.    Save money

A mortgage cal provides you with an option to plug in different quotes and see exactly how much money you can save by opting for different options.

3.    Easy decision making

Some mortgage brokers are looking to maximize profits all around, which means they might not always steer you in the right direction. To paying more than you have to, ask for all these details and check them out for yourself. Numbers don’t lie.

At Mortgage Right, we’re interested in your benefit. That’s why we’re happy to not only provide all the variables to take into consideration, but go over each one with you and a mortgage calculator.

4.    Save time

Fast computing and instant results make it easier and faster for you to get your dream home.

5.    Reverse calculations

Other than monthly payment estimations, you can work backward to find out what price you can afford to bid. To do this, you start by entering your income, or how much you can afford to pay monthly, and the calculator will perform a reverse calculation.

The results will yield variables and a price range that you can afford. Perfect if you’re just starting your search and not sure what your price range should be.

Terms to Know

When you understand where to input each variable and the format required, you’re ensured correct results. Here is a guide that will help you familiarize with the terms you are likely to encounter:

The Basics:

  • Principal

    This is the total mortgage value. It decreases with the payments you make. If you take a loan of $150,000, then your principal is $150,000.

  • Down payment

    The amount paid upfront to reduce the principal amount. In our previous example above, if you make a down payment of 20%. Which is $30,000 then your principal amount will reduce to $120,000.

  • Mortgage length

    This is the number of months you will be required to pay your mortgage.

  • Interest rate

    It refers to the interest charge on the remaining mortgage value. It is also known as APR or rate.

Other Terms:

  • Taxes

    The property taxes charged per year and are likely to be added to your monthly payments.

  • Loan-to-value-ratio

    Also known as LTV. It refers to how much your mortgage value is compared to the value of your house. LTV is used by lenders to determine the interest rate and loan limit.

  • Private mortgage insurance or PMI

    A type of insurance required by borrowers if they choose to make a down payment less than 20%.

  • Homeowner’s insurance

    In some cases, you will be required to pay this insurance in addition to PMI.

  • Adjustments

    If you have the adjustable-rate mortgage, (ARM), your calculator should be able to show how your interest rate will increase or decrease over a specified period, and how this will affect your monthly payments.

Beyond Mortgage

While some calculators will let you factor in extra costs to reach a realistic monthly payment expectations others will not provide such an option. In such cases, keep in mind the following costs that you are likely to encounter:

  • Furnishing costs
  • Maintenance costs
  • Association fees
  • Utilities like heating and lighting