Boston Taxi Rate Calculator

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Mortgage Payment Calculator

Principal & Interest: $0.00
Monthly Property Tax: $0.00
Monthly Insurance: $0.00
Total Monthly Payment: $0.00

Understanding Your Monthly Mortgage Payment

Calculating your potential monthly mortgage payment is one of the most important steps in the home buying process. This calculation helps you determine exactly how much house you can afford and ensures you maintain a healthy Debt-to-Income (DTI) ratio. A standard mortgage payment consists of four primary components, often referred to as PITI: Principal, Interest, Taxes, and Insurance.

The Breakdown of Costs

  • Principal: The portion of your payment that goes directly toward paying down the loan balance.
  • Interest: The fee charged by the lender for borrowing the money. In the early years of a mortgage, a larger percentage of your payment goes toward interest.
  • Property Taxes: Assessed by your local government based on the value of your property. These are usually paid annually but collected monthly by your lender into an escrow account.
  • Homeowners Insurance: Protects your property against damage. Like taxes, this is often collected monthly and held in escrow.

How the Mortgage Formula Works

The core of this calculator uses the standard amortization formula to determine the Principal and Interest (P&I) payment:

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

Where:

  • M = Total monthly payment
  • P = Principal loan amount (Home Price minus Down Payment)
  • i = Monthly interest rate (Annual Rate divided by 12)
  • n = Number of payments (Loan Term in years multiplied by 12)

Real-World Example

Let's look at a realistic scenario for a home buyer in today's market:

If you purchase a home for $400,000 and put 20% down ($80,000), your loan amount will be $320,000. Assuming a 30-year fixed rate of 6.5%:

  • Your Principal & Interest payment would be approximately $2,022.62.
  • If annual taxes are $5,000, that adds roughly $416 per month.
  • If annual insurance is $1,200, that adds $100 per month.
  • Total Estimated Monthly Payment: $2,538.62.

Use the calculator above to adjust these numbers based on your specific loan offers and local tax rates.

function calculateMortgage() { // 1. Get Input Values var price = document.getElementById('mortgageHomePrice').value; var down = document.getElementById('mortgageDownPayment').value; var rate = document.getElementById('mortgageRate').value; var term = document.getElementById('mortgageTerm').value; var tax = document.getElementById('mortgagePropertyTax').value; var insurance = document.getElementById('mortgageInsurance').value; // 2. Validate Inputs if (price === "" || down === "" || rate === "" || term === "") { alert("Please fill in all required fields (Price, Down Payment, Rate, Term)."); return; } // Parse floats var P = parseFloat(price) – parseFloat(down); // Principal var annualRate = parseFloat(rate); var years = parseFloat(term); var annualTax = (tax === "") ? 0 : parseFloat(tax); var annualIns = (insurance === "") ? 0 : parseFloat(insurance); // Edge case: Negative numbers if (P < 0 || annualRate < 0 || years <= 0) { alert("Please enter valid positive numbers."); return; } // 3. Calculation Logic var monthlyRate = (annualRate / 100) / 12; var numberOfPayments = years * 12; var monthlyPI = 0; // Handle zero interest case if (annualRate === 0) { monthlyPI = P / numberOfPayments; } else { // Standard Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] var numerator = monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments); var denominator = Math.pow(1 + monthlyRate, numberOfPayments) – 1; monthlyPI = P * (numerator / denominator); } var monthlyTaxVal = annualTax / 12; var monthlyInsVal = annualIns / 12; var totalMonthly = monthlyPI + monthlyTaxVal + monthlyInsVal; // 4. Format and Display Results var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2 }); document.getElementById('displayPI').innerText = formatter.format(monthlyPI); document.getElementById('displayTax').innerText = formatter.format(monthlyTaxVal); document.getElementById('displayIns').innerText = formatter.format(monthlyInsVal); document.getElementById('displayTotal').innerText = formatter.format(totalMonthly); // Show result div document.getElementById('mortgageResult').style.display = 'block'; }

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