What is a Mortgage?
This is a type of loan advanced to a borrower in the purchase of a property or real estate. It is done on the strength of the property, that is, if you default in your payment, the lender can seize the property through a legal exercise known as foreclosure.
Mortgage Calculator
Advanced Inputs
Additional Inputs
Results
| Principal & Interest | |
|---|---|
| Interest Rate | |
| Property Taxes | |
| Home Insurance | |
| Other Costs | |
| Total Monthly Payment |
How to Use the Mortgage Calculator
1. Enter Loan Information:
o Loan Amount: Enter the total amount of the loan to be disbursed to the customer.
o Interest Rate: Please, input the annual interest rate of the credit expressed as a percentage (for example, 4. 5%).
o Loan Term: Indicate the period of the loan I terms of years (e. g., 30).
2. Provide Additional Details:
Down Payment: Provide the dollar amount that is payable by you on the time of purchase or at the start of the subscription.
o Start Date: Choose the date when start the loan (optional).
3. Add Advanced Inputs (if needed):Add Advanced Inputs (if needed):
Check the “Advanced Inputs” checkbox to reveal additional fields:
Property Tax (annual): Please input the annual property taxes figure currently paid.
Homeowners Insurance (annual): As for homeowners insurance cost, please, enter the value considering the cost per year.
PMI (Private Mortgage Insurance) (%): Enter the annual PMI rate in fraction form (for example 0. 5).
HOA Fees (monthly): Input the amount that you pay in the Homeowners Association fees on a monthly basis.
4. Add Additional Inputs (if needed):Add Additional Inputs (if needed):
Check the “Additional Inputs” checkbox to reveal extra fields:
Extra Payments: Include any other payments that you intend to make in the amount, on a monthly basis.
Balloon Payment: Add any other large end balance of the loan (if any) that is due on maturity of the loan.
Closing Costs: Put down the sum of the closing costs of the loan.
5. Calculate the Mortgage:
Press the “Calculate” button, after the program will count the result.
6. View Results:
o Review the results displayed in the table:
Principal & Interest: The amount of money to be paid each month to clear all the principal and interest amount of the loan.
Property Taxes: The payment to be made for property tax every month.
Home Insurance: The quotidian cost of homeowners insurance.
Other Costs: he sum of PMI and HOA fees.
Total Monthly Payment: The total amount of the monthly instalment.
7. Review the Pie Chart:
o When you make your total monthly payment, the pie chart will show you the percentage taken by each part of the cost.
Mortgage Calculator Example
Inputs:
| Input | Value |
| Loan Amount | $300,000 |
| Interest Rate (annual) | 4.5% |
| Loan Term (years) | 30 |
| Down Payment | $60,000 |
| Property Tax (annual) | $3,000 |
| Homeowners Insurance (annual) | $1,200 |
| PMI (annual) | 0.5% |
| HOA Fees (monthly) | $200 |
Converted Figures:
| Conversion | Formula | Value |
| Monthly Interest Rate | 4.5% / 12 / 100 = 0.00375 | 0.00375 |
| Loan Term (months) | 30 * 12 | 360 |
| Monthly Property Tax | 3,000 / 12 | $250 |
| Monthly Homeowners Insurance | 1,200 / 12 | $100 |
| Monthly PMI | (0.5% * 300,000) / 12 / 100 | $125 |
| Monthly HOA Fees | Already given | $200 |
Calculations:
| Calculation | Formula | Value |
| Principal Amount | 300,000 – 60,000 = 240,000 | $240,000 |
| Monthly Interest Payment | (240,000 * 0.00375 * (1 + 0.00375)^360) / ((1 + 0.00375)^360 – 1) | $1,216.04 |
| Total Monthly Payment | Principal & Interest + Property Tax + Home Insurance + Other Costs | $1,891.04 |
Detailed Breakdown:
| Component | Value | Percentage of Total Monthly Payment |
| Principal & Interest | $1,216.04 | 64.2% |
| Property Taxes | $250.00 | 13.2% |
| Homeowners Insurance | $100.00 | 5.3% |
| PMI and HOA Fees | $325.00 | 17.3% |
| Total Monthly Payment | $1,891.04 | 100% |