A home is the largest purchase that most of us will ever make, so it is important to research this decision before making it. Scouting the market in search of the best rate for you is a good idea.
This mortgage calculator is the ideal starting point, and will display how much your monthly mortgage payment might be – either on a 15 or 30 year fixed program.
How to use it
- Begin by entering the price of the property that you are currently considering buying.
- Then, insert the down payment: the amount of money you have available to pay up front, or the amount that is requested in the mortgage you are considering.
- This can be entered as a figure in dollars or as a percentage of the home price.
- You can then pick between two programs – 15-year fixed or 30-year fixed – before entering details such as the interest rate (percent), property taxes (percent per year) and insurance (dollars per year).
To give an example, let’s imagine that a family is interested in a property that is on the market at $200,000. This figure is entered into the calculator first, followed by the down payment that is required: 15%, for example, which would be $30,000. The down payment can be inserted as a percentage or a sum. The family then chooses the program they are interested in, whether it be 15 or 30 years – in this case, let’s say 15. We then enter the interest rate on the loan (4%), as well as any property taxes (2% per year) and insurance ($1,000 per year). This would result in a monthly mortgage payment of around $1,518.