In most cases, if you are buying a house, you will have to get a mortgage. You know the total amount of the loan you need but want to see how much the monthly payment toward that loan would be. How would different interest rates and loan timespans affect that monthly payment and can you afford it? How would the interest and principal amounts in the payment change over time? This calculator tries to help you figure these things out.
Below are some scenarios that could give you a better idea of how to use this calculator.
You are browsing a real estate marketplace and like some of the houses you see listed. Some houses might be a little on the expensive side so you want to see what the monthly mortgage payment could be and if it is worth it.
You have a house you are interested in buying as well as a loan term you have in mind. Shopping around for the right mortgage is your plan but you want to get an idea of the maximum interest rate you are willing to take on that loan as well as how much interest you are paying in your monthly payment as you pay off the loan.
This section shows how much your monthly mortgage payment would be. The fields on the right side of the calculator can be adjusted which would change the monthly mortgage payment amount displayed in the center.
This section gives you a breakdown of your monthly mortgage payment. The doughnut chart shows how much of your monthly payment is going towards interest and how much is going towards the principal loan amount on the first payment. Remember that the amount going towards interest and your principal will change after each payment. You can see how these amounts change in the Amortization tab. You can also add in tax and home insurance costs using the advanced options fields.
This section shows your current and remaining loan balance and monthly payment details for each month in the loan term. This allows you to see how much loan you have remaining after each payment as well as how much of your payment is going towards interest and the principal amount.
Clicking the Advanced Options button will open a popup with the tax field and the insurance field. This allows you to edit how much you would be paying in taxes and home insurance each month. These values are then added to the chart in the Breakdown tab so you can see what portion of your monthly payment would be comprised of taxes and insurance.