Mortgage Calculator
Modify the values and click the calculate button to use
Results
Monthly Pay: $2,082.75
| Monthly | Total | |
|---|---|---|
| Mortgage Payment | $2,082.75 | $749,790.45 |
| Property Tax | $400.00 | $144,000.00 |
| Home Insurance | $125.00 | $45,000.00 |
| Other Costs | $333.33 | $120,000.00 |
Total Out-of-Pocket: $2,941.08
Principal & Interest: 71%
Property Taxes: 14%
Home Insurance: 4%
Other Costs: 11%
House Price: $400,000.00
Loan Amount: $320,000.00
Down Payment: $80,000.00
Total of 360 Mortgage Payments: $749,790.45
Total Interest: $429,790.45
Mortgage Payoff Date: Jul. 2
Overview of the Mortgage Calculator
The Mortgage Calculator is a valuable tool designed to estimate your monthly mortgage payments along with other associated financial costs. It offers options to include additional payments and annual percentage increases for common mortgage-related expenses. This tool is primarily intended for use by U.S. residents.
Understanding Mortgages
A mortgage is a loan secured by real estate property. Essentially, a lender provides funds to purchase a home, and the borrower agrees to repay the loan over a specified period, usually 15 or 30 years in the U.S. Monthly payments consist of principal (the original loan amount) and interest (the cost of borrowing). An escrow account may also be involved to cover property taxes and insurance. Full ownership of the property is only attained once the mortgage is completely paid off. The most common mortgage in the U.S. is the 30-year fixed-rate loan, representing 70% to 90% of all mortgages.
Key Components of a Mortgage
The Mortgage Calculator estimates several key components:
Down Payment: An upfront payment, typically a percentage of the total price. A down payment of 20% or more is preferred, though lower amounts may require private mortgage insurance (PMI).
Loan Term: The period over which the loan is repaid, commonly 15, 20, or 30 years.
Interest Rate: The percentage charged for borrowing. The calculator supports fixed-rate mortgages, where interest rates remain constant throughout the term.
Costs Associated with Home Ownership
Monthly mortgage payments are a significant part of home ownership costs, but there are other substantial expenses:
Non-Recurring Costs: Include closing costs, initial renovations, and miscellaneous expenses like new furniture and moving costs.
Early Repayment and Extra Payments
The calculator also considers the impact of extra payments on mortgage repayment. Strategies include making extra payments, biweekly payments, or refinancing to a shorter-term loan. While early repayment can reduce interest costs and shorten the loan term, it may also involve prepayment penalties, opportunity costs, and potential loss of tax deductions.