Borrowers can use a mortgage calculator to estimate monthly mortgage payments based on the purchase price, down payment, interest rate, and other monthly homeowner expenses.
Whether you're looking for a mortgage or creating an amortization table for your current loan, a mortgage calculator can provide insight into your monthly payments.
The mortgage payoff formula is complex but useful. It shows homeowners and would-be homeowners how paying more would affect their budget and wealth.
Enter the cost of the house. Begin by entering the total purchase price of the house you want to buy on the left side of the screen.
Follow these steps to use the Forbes Advisor mortgage calculator:
To determine how much house you can afford if you don't have a specific home in mind, you can play around with this number.
Enter the size of your down payment. Add the anticipated down payment next, either as a percentage of the purchase price or as a set sum.
your interest rate, please. In the interest rate box on the left, enter one of the values you were given if you have already looked around for a loan and have received a range of interest rates.
You can use the average mortgage rate that is currently being offered as a starting point even if you have not yet been prequalified for an interest rate.
Determine the length of the loan. Entering a loan term with a maximum of 30 years can be helpful when calculating the amount of your monthly mortgage payment.
If you haven't been approved for a loan term or interest rate, the rate you choose here should correspond to the average rate you entered above.
Using the average 15-year mortgage rate, choose a 15-year term. If you want low monthly payments and a shorter term, use this section of the calculator.