Negative Interest Rate Calculator

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Mortgage Payment Calculator

Please enter valid positive numbers for all fields.

Estimated Monthly Payment $0.00
Principal & Interest $0.00
Property Tax (Monthly) $0.00
Home Insurance (Monthly) $0.00
Loan Amount $0.00
Total Interest Paid (Over Life) $0.00

Understanding Your Mortgage Payments

Purchasing a home is one of the most significant financial decisions you will make. Using a Mortgage Payment Calculator is essential to understand exactly how much house you can afford. This tool breaks down your monthly obligations into the core components of PITI: Principal, Interest, Taxes, and Insurance.

What Factors Influence Your Monthly Payment?

Your monthly mortgage payment is not just about repaying the loan. It consists of several distinct parts:

  • Principal: The portion of the payment that reduces the loan balance.
  • Interest: The cost of borrowing money, determined by your interest rate.
  • Property Taxes: Fees paid to your local government, usually collected by the lender in escrow and divided into monthly installments.
  • Homeowners Insurance: Protection for your property against damage, also typically paid via escrow.

How the Calculation Works

This calculator uses the standard amortization formula to determine the principal and interest payment:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

Where M is the monthly payment, P is the principal loan amount, i is the monthly interest rate, and n is the number of months required to repay the loan.

Tips for Lowering Your Payment

If the estimated payment is higher than your budget allows, consider these strategies:

  • Increase your Down Payment: Putting more money down reduces the principal loan amount and can eliminate Private Mortgage Insurance (PMI).
  • Improve your Credit Score: A higher score can qualify you for a lower interest rate, significantly reducing costs over time.
  • Extend the Loan Term: Choosing a 30-year term over a 15-year term lowers monthly payments, though you will pay more in total interest.
function calculateMortgage() { var homePrice = parseFloat(document.getElementById('mp-home-price').value); var downPayment = parseFloat(document.getElementById('mp-down-payment').value); var interestRate = parseFloat(document.getElementById('mp-interest-rate').value); var loanTermYears = parseFloat(document.getElementById('mp-loan-term').value); var annualTax = parseFloat(document.getElementById('mp-property-tax').value); var annualInsurance = parseFloat(document.getElementById('mp-insurance').value); var errorMsg = document.getElementById('mp-error'); var resultsDiv = document.getElementById('mp-results'); // Validation if (isNaN(homePrice) || isNaN(downPayment) || isNaN(interestRate) || isNaN(loanTermYears) || homePrice <= 0 || interestRate < 0 || loanTermYears <= 0) { errorMsg.style.display = 'block'; resultsDiv.style.display = 'none'; return; } // Handle optional fields as 0 if empty/NaN if (isNaN(annualTax)) annualTax = 0; if (isNaN(annualInsurance)) annualInsurance = 0; errorMsg.style.display = 'none'; // Core Calculation Logic var principal = homePrice – downPayment; if (principal = Home Price document.getElementById('mp-final-monthly').innerText = "$0.00"; document.getElementById('mp-pi-val').innerText = "$0.00"; document.getElementById('mp-tax-val').innerText = "$" + (annualTax / 12).toFixed(2); document.getElementById('mp-ins-val').innerText = "$" + (annualInsurance / 12).toFixed(2); document.getElementById('mp-loan-amount').innerText = "$0.00"; document.getElementById('mp-total-interest').innerText = "$0.00"; resultsDiv.style.display = 'block'; return; } var monthlyInterestRate = (interestRate / 100) / 12; var numberOfPayments = loanTermYears * 12; // Amortization Formula // M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] var monthlyPI = 0; if (monthlyInterestRate === 0) { monthlyPI = principal / numberOfPayments; } else { monthlyPI = principal * ( (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1) ); } var monthlyTax = annualTax / 12; var monthlyInsurance = annualInsurance / 12; var totalMonthlyPayment = monthlyPI + monthlyTax + monthlyInsurance; var totalInterest = (monthlyPI * numberOfPayments) – principal; // Formatting currency var formatMoney = function(num) { return "$" + num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}); }; // Updating UI document.getElementById('mp-final-monthly').innerText = formatMoney(totalMonthlyPayment); document.getElementById('mp-pi-val').innerText = formatMoney(monthlyPI); document.getElementById('mp-tax-val').innerText = formatMoney(monthlyTax); document.getElementById('mp-ins-val').innerText = formatMoney(monthlyInsurance); document.getElementById('mp-loan-amount').innerText = formatMoney(principal); document.getElementById('mp-total-interest').innerText = formatMoney(totalInterest); resultsDiv.style.display = 'block'; }

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