Basic Monthly Mortgage Payment Calculator
Basic Monthly Mortgage Payment Calculator is used to calculate a basic monthly mortgage payment. To calculate monthly mortgage payments you will need to know some information, these are:
- The loan amount (the total amount you are borrowing)
- The interest rate on the loan
- The term of the loan (how many years you will be paying the mortgage)
Once you have this information, you can use an online mortgage calculator or the following formula:
M = P[r(1+r)^n]/[(1+r)^n-1]
Where:
- M = monthly mortgage payment
- P = the principal loan amount
- r = the monthly interest rate
- n = the total number of payments.
Note: Here the annual interest rate is divided by 12 and the number of years of the loan is multiplied by 12.
It’s important to note that this formula is a simplified version of the calculation and doesn’t take into account other factors like taxes, insurance, or PMI (private mortgage insurance) that may also affect the monthly mortgage payment. It is always best to consult a financial advisor or mortgage professional for a more accurate estimate.
Using of Calculator
With this calculator, you can Calculate your monthly home mortgage payment based on the mortgage loan amount, mortgage term, and interest rate. If you want to include annual insurance and taxes in your calculations, use this mortgage calculator with taxes and insurance.
The Amount of the Mortgage
the original principal amount of your mortgage when calculating a new mortgage or the current principal amount owed when calculating an existing mortgage.
The Period of the Mortgage
The original term of the mortgage or the time remaining until the calculation of the current mortgage.
Interest Rate
The annual nominal interest rate or the stated loan rate. Note that this is the interest rate you are charged, which is different and usually lower than the annual percentage rate (APR).
Monthly Payment
The number of payments to be made monthly for this mortgage, principal, and interest only. This does not include insurance, taxes, or advance payments. (payment = principal + interest)