Mortgage Loan Payment Basics
This mortgage payment calculator is designed to aid you in determining whether your can afford the purchase of your next home. The calculator factors that will determine your monthly payment for home residence includes the home mortage loan amount to be financed, the term length and the interest rate. The mortgage loan amount to be financed will be the purchase price of the house, less your initial deposit. In addition, you will need to add to your monthly budget calculations related expenses such as property taxes, insurance and maintenance.
Owning a home is generally the largest investment for most Americans. According to the Federal Financing Housing Agency, in 2018, the average mortgage loan in the US was $312,900, with 30-year term, fixed interest rate of 4.64%. In 2015, the US Census Bureau indicated that the median monthly mortgage payment was $1,030. The total monthly housing costs rise to $1,492 when including property taxes and insurance. These later figures vary by geographic location and value of a house.
Home mortgage interest rates vary based primarily on the loan amount and the loan-to-value ratio (LTV). The higher the loan amount, the greater the risk to the lender resulting in a higher interest rate. If the mortgage loan amount is greater than 80% of the value of the property (an LTV of greater than 80%), there will be a corresponding higher interest rate as well. Lenders will also take into consideration the borrower’s credit score and debt-to-income ratio (DTI) in determining the mortgage rate offered. A lower DTI indicates that the borrower has better financial health and presents less risk to the lender.
Calculate Your Monthly Mortgage Payment
To use this mortgage payment calculator, enter the mortgage price, the mortgage loan interest rate and term of the loan, the annual property taxes and insurance. The calculated monthly mortgage payment is only your financial costs. You will need to add your maintenance fees to determine your total cost of home ownership.
As an example, a borrower purchasing a house valued at $100,000, with a standard mortgage loan at 4.15%, for 30 years, with annual property taxes and insurance of $1,000 will have a monthly mortgage finance payment of $652/Month.
You will find that the most important factors affecting your mortgage financial payment is the total amount of the mortgage loan, the term length of the loan, then interest.