🏠 Home Loan Calculator

Calculate your monthly mortgage payments, total interest, and see how different factors affect your home loan.

Loan Information

Mortgage Results

Monthly Payment: $2,281.37
Principal & Interest: $1,773.40
Property Tax: $300.00
Home Insurance: $100.00
PMI: $107.97
HOA Fees: $0.00
Total Loan Amount: $280,000.00
Total Interest Paid: $358,424.00
Total of All Payments: $638,424.00
Pay-off Date: May 2054

About Home Loan Calculations

A home loan calculator helps you understand the true cost of buying a home by calculating your monthly mortgage payment and the total interest you'll pay over the life of the loan. It takes into account the principal amount, interest rate, loan term, and additional costs like property taxes, insurance, and PMI.

Example Calculation:

For a $350,000 home with a $70,000 down payment (20%), a 30-year fixed loan at 6.5% interest:

Your monthly payment would be $2,281 including principal, interest, taxes, insurance, and PMI.

Over the life of the loan, you would pay $358,424 in interest alone.

Your mortgage payment typically consists of several components:

  1. Principal: The amount borrowed to buy the home
  2. Interest: The cost of borrowing money from the lender
  3. Taxes: Property taxes assessed by your local government
  4. Insurance: Homeowner's insurance and possibly PMI (Private Mortgage Insurance) if your down payment is less than 20%
  5. HOA Fees: Homeowners association fees, if applicable

Factors Affecting Your Mortgage Payment

• Home Price: The purchase price of the home

• Down Payment: The initial amount paid upfront (typically 3-20%)

• Loan Term: The length of the loan (15, 20, or 30 years)

• Interest Rate: The annual interest rate on your loan

• Property Taxes: Annual taxes based on your home's value

• Home Insurance: Annual premium for homeowner's insurance

• PMI: Private Mortgage Insurance required when down payment is less than 20%

• HOA Fees: Monthly homeowners association fees, if applicable

Understanding these components can help you make informed decisions about your home purchase and potentially save money by making extra payments toward your principal.

Mortgage Formula

The monthly mortgage payment is calculated using:

M = P [ r(1+r)^n ] / [ (1+r)^n - 1 ]

Where:

M = Monthly mortgage payment

P = Principal loan amount

r = Monthly interest rate (annual rate ÷ 12)

n = Number of payments (loan term in years × 12)

Key Mortgage Terms

PMI: Private Mortgage Insurance required when down payment is less than 20%

Amortization: The process of paying off a loan through regular payments

Equity: The difference between your home's value and your mortgage balance

Escrow: An account that holds funds for property taxes and insurance

Down Payment Comparison

• 3% down: Minimum for some conventional loans

• 3.5% down: Minimum for FHA loans

• 10% down: Better interest rates, lower PMI

• 20% down: No PMI required, best rates

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