All home affordability calculators look slightly different, but in general, you’ll input your monthly income, expenses, and assets to get an estimate of what you can afford. Purchase CalculatorĪ purchase calculator, or home affordability calculator, helps you estimate how much home you can afford.

If you’d rather use a mortgage calculator to do the hard work for you, you can look into several different options: purchase calculators, refinance calculators and amortization calculators. Mortgage calculators can easily churn out accurate figures. Once you nail down all the information you need to calculate your mortgage payments, you can use the following formula:ĭue to the complexity of this formula, you may want to use a digital mortgage calculator instead of calculating your mortgage payments yourself. Formula for Calculating Mortgage Payments In other words, if you have a 30-year mortgage, you’ll make a total of 360 payments. You can determine the number of monthly payments in your loan term by multiplying by 12 (the number of payments you make per year). Your loan term refers to the number of years you and your lender have agreed you will pay off your mortgage. You want to include the number of payments in your loan term. APR includes interest rate, points, mortgage broker fees and more. To use the formula correctly, you must use the original principal balance and your base interest rate - not the annual percentage rate (APR). Your individual mortgage payment depends on several variables, including three main variables for the actual calculation itself: the principal, interest rate and number of payments in your loan term. MIP would also roll into your monthly mortgage payments. If you get an FHA loan backed by the federal government, you will also pay a mortgage insurance premium (MIP) throughout the life of your loan. If you make a down payment of less than 20%, you’ll pay for private mortgage insurance (PMI).

Mortgage insurance protects your lender in case you stop making payments on your mortgage. Mortgage insurance: You may need to pay mortgage insurance as a part of your mortgage payments - but not everyone has to.Part of the money held in your escrow account goes toward your homeowners insurance.

It covers loss and damage to your home due to fire, wind, theft or other hazards. Homeowners insurance: You will need homeowners insurance when you have a mortgage.Property taxes pay for local government needs, such as school districts, street upkeep and local fire and police protection. Your mortgage servicer then pays your taxes when they are due. A third party holds these funds in an escrow account. Taxes: Taxes are part of your mortgage payment.The amount you pay in interest per month depends on the interest rate you get from your lender. Interest: Your mortgage lender charges you for borrowing money in the form of interest.The principal payments you make over time reduce the amount you owe. Your principal amount would now be $50,000. Let’s say you’ve paid off $150,000 of your loan balance. For example, if you borrow $200,000 to buy a house, the principal amount is $200,000. Principal: Mortgage principal refers to your loan balance, or the amount you have left until you pay off your loan.You may also pay mortgage insurance as part of your payment as well. The four ongoing components of mortgage payments include the following: principal, interest, taxes and homeowners insurance. What Can a Mortgage Calculator Help Me With?Īt a basic level, you know the definition of a mortgage payment: the amount of money you pay toward your mortgage each month.īut you may be wondering, what exactly is included in a mortgage payment?.Formula for Calculating Mortgage Payments.How Do I Calculate My Mortgage Payment?.

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