Our simple mortgage calculator appears on most pages of our website.
If you find a property you like and want to estimate the monthly payment, simply use the slide to adjust the following information:
This is the list price of the property.
This is how much money you will be able to put down on the purchase.
This is how long the mortgage will be.
Most mortgages are 30 years, but 15 and 20 year terms are also common.
The shorter the term, the larger your monthly payment will be, but the less interest you will pay over the life of the loan.
This is the interest rate on the loan.
It can vary based on many factors such as the current rate, your personal credit history, the amount of the down payment, and the length of the loan.
You can usually find an estimate of the current interest rate on Google, click HERE to see today’s rates on Wells Fargo’s website.
This is the total property taxes for one full year.
This amount, plus a reserve, will be rolled into your monthly payments so that your property taxes can be paid by your mortgage company.
You can add the cost of home owner’s insurance for the year here to get a more accurate monthly payment since there is no line item for that on the calculator.
Click CALCULATE when you are done entering the above information or when you change any of the line items.
A typical monthly mortgage payment includes the amortized cost of the loan, which just means your principle and interest, as well as taxes and insurance.
Principle is an amount that reduces the total amount of the loan and interest payments work toward paying off the total interest you owe over the life of the loan. Making even one extra payment a year will reduce your principle and will shorten the amount of time you will have to pay on your loan.
Property taxes and home owner’s insurance are paid yearly by your mortgage company from the money you have given them each month. They hold that money in an escrow account until your payments are due.