Bank Rate Morgage Calculator

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Bank Rate Mortgage Calculator

Use our mortgage calculator to estimate your monthly mortgage payments. This tool helps you understand how different loan amounts, interest rates, and loan terms can impact your overall monthly cost.

Understanding Your Mortgage Payment

The monthly payment calculated by this tool is an estimate and primarily covers the principal and interest (P&I) portion of your mortgage. It does not include other costs that are typically part of your total monthly housing expense, such as:

  • Property Taxes: Annual taxes assessed by your local government on your property's value.
  • Homeowners Insurance: Coverage for damage to your home and liability.
  • Private Mortgage Insurance (PMI): Often required if your down payment is less than 20% of the home's purchase price.
  • HOA Fees: Dues for homeowners association if applicable.

To get a precise estimate including these additional costs (often referred to as PITI – Principal, Interest, Taxes, and Insurance), you should consult with a mortgage lender or financial advisor. They can provide a Loan Estimate detailing all associated costs based on your specific financial situation and the property you are looking to purchase.

How it Works: The calculator uses the standard monthly mortgage payment formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1], where:

  • M = Monthly Payment
  • P = Principal Loan Amount
  • i = Monthly Interest Rate (Annual Rate / 12)
  • n = Total Number of Payments (Loan Term in Years * 12)
function calculateMortgage() { var principal = parseFloat(document.getElementById("loanAmount").value); var annualRate = parseFloat(document.getElementById("annualInterestRate").value); var years = parseFloat(document.getElementById("loanTermYears").value); var resultDiv = document.getElementById("result"); resultDiv.innerHTML = "; // Clear previous results if (isNaN(principal) || isNaN(annualRate) || isNaN(years) || principal <= 0 || annualRate < 0 || years <= 0) { resultDiv.innerHTML = 'Please enter valid positive numbers for all fields.'; return; } var monthlyRate = annualRate / 100 / 12; var numberOfPayments = years * 12; var monthlyPayment = principal * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1); if (isNaN(monthlyPayment) || !isFinite(monthlyPayment)) { resultDiv.innerHTML = 'Could not calculate. Please check your inputs.'; return; } resultDiv.innerHTML = 'Your estimated monthly Principal & Interest payment is: $' + monthlyPayment.toFixed(2) + ''; }

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