Advanced Mortgage Calculator
Advanced Mortgage Calculator
Mortgage Details
Monthly Payment: $0.00
Total Interest Paid: $0.00
Total Payments Made: $0.00
Remaining Balance: $0.00
Our Advanced Mortgage Calculator
This calculator helps you estimate the monthly payment you’d owe on a mortgage loan, considering various factors that go beyond the basics.
Key Features
- Loan Basics: Enter the home price, down payment percentage and amount, loan term (years), and interest rate.
- Start Date: Specify the month when your loan payments would begin.
- Taxes & Costs: Include ongoing expenses like property taxes, homeowner’s insurance, PMI (if applicable), HOA fees, and other costs.
- Annual Increases (Optional): Factor in potential yearly increases for taxes and costs.
Benefits
- More Accurate Estimates: Considers various factors for a more realistic picture of your monthly housing costs.
- Loan Comparison: Helps you compare different loan options to choose the most suitable one for your budget.
- Budgeting: Allows you to include ongoing property expenses besides the mortgage payment.
Remember
- The estimates are not guaranteed and may vary based on your specific situation and lender’s terms.
- Additional one-time or ongoing costs might be involved in homeownership.
Using this calculator can help you make informed decisions when choosing a mortgage loan.
How to Use This Advanced Mortgage Calculator
Here’s a guide on how to use our advanced mortgage calculator:
1. Input Loan Information:
- Home Price: Enter the total cost of the property you’re considering buying.
- Down Payment (%): Enter the percentage of the home price you’ll pay upfront as a down payment. The calculator will automatically calculate the down payment amount based on the percentage and home price.
- Down Payment ($): This field might be disabled initially. You can verify the calculated down payment amount here.
- Loan Term (Years): Enter the desired duration of the mortgage loan in years (e.g., 15, 30).
- Interest Rate (%): Enter the annual percentage rate (APR) offered by the lender.
2. Select Start Date (Optional):
- Use the dropdown menu to choose the month when your loan payments would begin (optional).
3. Include Taxes & Costs (Optional):
- Check the box labeled “Include Taxes & Costs Below” if you want to factor in additional ongoing expenses. This section becomes enabled when checked.
- Property Taxes (% and $): Enter the annual property tax percentage or the fixed dollar amount you’ll pay.
- Home Insurance (% and $): Enter the annual cost of homeowner’s insurance as a percentage or a fixed dollar amount.
- PMI Insurance (% and $): If applicable, enter the annual private mortgage insurance (PMI) percentage or the fixed dollar amount. PMI is typically required when your down payment is less than 20% of the home price.
- HOA Fee (% and $): Enter the monthly or annual Homeowner’s Association (HOA) fee percentage or the fixed dollar amount (if applicable).
- Other Costs (% and $): This allows you to include any additional recurring costs like flood insurance or other homeowner association fees. You can enter the percentage of the home price or a fixed dollar amount.
4. Include Annual Tax & Cost Increase (Optional):
- Check the box labeled “Include Annual Tax & Cost Increase” if you want to factor in potential yearly increases for property taxes, insurance costs, etc. This section becomes enabled when checked.
- Property Tax Increase (%): Enter the estimated annual percentage increase for property taxes (optional).
- Home Insurance Increase (%): Enter the estimated annual percentage increase for homeowner’s insurance (optional).
5. Calculate Monthly Payment:
- Click the button labeled “Calculate Monthly Payment.”
6. View Results:
- The calculator will display the estimated monthly mortgage payment amount in the “Output” section. This considers the loan amount (home price minus down payment), interest rate, loan term, and any additional taxes and costs you included.
How to Calculate Mortage manually ?
Manually calculating a mortgage payment involves a formula that considers factors like loan amount, interest rate, and loan term. Here’s a step-by-step guide:
Gather Required Information
Loan amount: This is the total amount you borrow from the lender to finance the home purchase (home price minus down payment).
Interest rate: This is the annual percentage rate (APR) charged by the lender on the loan amount. It’s typically expressed as a decimal (e.g., 5% interest rate = 0.05).
Loan term: This is the duration of the loan, typically in years (e.g., 15 years, 30 years).
Convert Loan Term to Months
Since most mortgage payments are monthly, you need to convert the loan term from years to months. Multiply the number of years by 12. For example, a 15-year loan would be 15 years * 12 months/year = 180 months.
Calculate the Monthly Interest Rate
Divide the annual interest rate by the number of payments per year. As mentioned earlier, most mortgages have monthly payments, so divide by 12. For example, if your annual interest rate is 5% (0.05), the monthly interest rate would be 0.05 / 12 = 0.004167 (rounded to five decimal places).
Apply the Mortgage Payment Formula
- There’s a formula to calculate the monthly mortgage payment. It considers the loan amount, monthly interest rate, and number of payments (loan term in months).
- Here’s the formula:
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Payments))Plug in the Numbers
Substitute the values you gathered in steps 1 and 2 into the formula.
Make sure all the values (loan amount and interest rate) are in the same decimal format (e.g., both as percentages or both as decimals).
Calculate the Monthly Payment
Use a calculator to solve the equation and get your monthly mortgage payment amount.
Example:
- Loan amount: $200,000
- Interest rate: 5% (0.05 decimal)
- Loan term: 15 years (180 months)
Calculation
- Monthly interest rate = 0.05 / 12 = 0.004167
- Monthly payment = ($200,000 * 0.004167) / (1 – (1 + 0.004167)^(-180))
- Monthly payment ≈ $1,406.12 (rounded to two decimal places)