Calculate your monthly mortgage payments, total interest, and amortization schedule. Include property tax, insurance, and PMI for accurate estimates.
| Month | Payment | Principal | Interest | Balance |
|---|
A mortgage is a loan used to purchase real estate, where the property serves as collateral. The borrower makes monthly payments that include principal, interest, taxes, and insurance (PITI). Understanding these components helps in making informed decisions about home financing.
For a ₹50,00,000 home with ₹10,00,000 down payment at 8.5% for 20 years:
Loan Amount: ₹40,00,000
Monthly P&I: ₹33,459
Total Monthly Payment: ₹41,376 (including taxes, insurance, PMI)
Total Interest: ₹40,30,160
Components of mortgage payment:
Fixed-Rate Mortgage: Interest rate remains constant throughout the loan term.
Adjustable-Rate Mortgage (ARM): Interest rate changes based on market conditions.
Interest-Only Mortgage: Pay only interest for initial period, then principal + interest.
Consider factors like loan term, interest rate, down payment, and additional costs when choosing a mortgage.
Monthly payment calculation:
Where:
M = Monthly payment
P = Principal loan amount
r = Monthly interest rate
n = Total number of payments
• SBI: 8.50% - 9.15%
• HDFC: 8.60% - 9.50%
• ICICI: 8.75% - 9.50%
• Axis Bank: 8.75% - 9.65%
• LIC Housing: 8.50% - 9.25%