One of the most common questions that home buyers ask our loan officers is “how much will my monthly mortgage payment be?” The actual formula for calculating the monthly payments for your home loan can get pretty complicated, and that’s where our home loan calculator comes in.
While your actual mortgage payment may differ depending on how much you pay in property taxes and homeowners insurance, this is a good estimate of what your mortgage payment might be.
Factors of our home loan calculator:
- Loan Amount: This is the amount of money you would like to borrow in order to buy a house. This should be slightly higher than the listed value of a home, as other expenses may come into play.
- Term Length: This is the number (in years) that you will be expected to pay off your home loan on a monthly basis.
- Interest Rate: This is a percentage of the loan amount that you pay the lender as the cost for borrowing the amount of the loan.
- Monthly Payment: This is a good estimate of what your mortgage payment might be, based on the loan amount, term length and interest rate.
Our home loan calculator allows you to change these amounts to see how a different interest rate or loan term could affect your payment. You can play with the numbers to determine a good estimate of your monthly mortgage payment by using our home loan calculator.
When to use our home loan calculator:
If you are early in the process, a home loan calculator can help you decide how much you want to spend on a home. It’s a helpful tool to help determine the amount you can comfortably spend each month based on your loan amount, interest rate and the term length of the loan.
These numbers are a great place to start, but may not include the full extent of your payments once your home loan is closed. Factors such as third-party closing costs, taxes, points and lender charges will also be factored into your monthly mortgage payments.
Ready to dive into these numbers and find out what your mortgage payment could be? We’ll connect you with a personally assigned home mortgage loan officer who will walk you through your home loan application and approval process from start to finish. No automated messages or confusing processes, we are here for you– and we’re only a phone call away.
Contact us here to start today.