Mortgage Calculator

 
 
Mortgage calculator is a financial tool used to determine your mortgage principle and interest payment. The monthly payment amount is based on certain variables such as loan amount, interest rate and loan terms. You can also add your property tax, PMI (Private Mortgage Insurance) and other costs, so that the result shows your monthly total out-of-pocket payment. 

To display your monthly and annual amortization schedules based on a loan starting date, you can use a more detailed Mortgage Calculator. 

Some terms used in the calculator
  • Loan Amount — The amount you borrow from your lender. The loan amount you can borrow normally correlates to your household income and liability.
     
  • Loan Terms — The length of time you have to pay off the loan. Typical loan terms include 30 years, 25 years, 20 years, 15 years, 10 years, and so forth. Generally, the shorter the loan term, the lower the interest rate.
     
  • Interest Rate — The interest rate of a mortgage can be "fixed" or "adjustable" (also known as ARM). For ARMs, the interest rate is generally fixed for a period of time, after which it will periodically "adjust", based on market index. An ARM transfers part of the risk to a borrower; therefore, the initial interest rate is normally 0.5% to 2% lower than 30-year fixed rate.
     
  • PMI — Private Mortgage Insurance. Generally if the down payment is less than 20% of the appraisal value of the property and only one loan is secured by the property, Private Mortgage Insurance needs to be paid monthly until the principal amount reduces to equal or less than 80% of the appraisal value.