Calculate House Payment

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Mortgage Monthly Payment Calculator

30 Years Fixed 20 Years Fixed 15 Years Fixed 10 Years Fixed

Calculation Summary

Estimated Monthly Payment: $0.00
Total Loan Amount: $0.00
Total Interest Paid: $0.00
Total Cost of Loan: $0.00
function calculateMortgage() { var homePrice = parseFloat(document.getElementById('homePrice').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var annualInterestRate = parseFloat(document.getElementById('interestRate').value); var loanTermYears = parseInt(document.getElementById('loanTerm').value); if (isNaN(homePrice) || isNaN(downPayment) || isNaN(annualInterestRate)) { alert("Please enter valid numerical values."); return; } var principal = homePrice – downPayment; if (principal <= 0) { alert("Down payment cannot be equal to or greater than the home price."); return; } var monthlyInterestRate = (annualInterestRate / 100) / 12; var numberOfPayments = loanTermYears * 12; var monthlyPayment = 0; if (monthlyInterestRate === 0) { monthlyPayment = principal / numberOfPayments; } else { monthlyPayment = principal * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1); } var totalCost = monthlyPayment * numberOfPayments; var totalInterest = totalCost – principal; document.getElementById('monthlyResult').innerText = '$' + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('loanAmountResult').innerText = '$' + principal.toLocaleString(); document.getElementById('interestResult').innerText = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalCostResult').innerText = '$' + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('mortgageResults').style.display = 'block'; }

Understanding Your Mortgage Monthly Payment

Buying a home is one of the most significant financial decisions you will ever make. To navigate this process effectively, you must understand how your monthly mortgage payment is calculated and what factors influence the final number. Our Mortgage Monthly Payment Calculator helps you estimate your costs so you can budget accurately.

How is a Mortgage Payment Calculated?

The core of your mortgage payment is based on a standard amortization formula. The primary variables include:

  • Principal: The actual amount of money you borrow (Home Price minus Down Payment).
  • Interest Rate: The cost charged by the lender for borrowing the money, expressed as an annual percentage.
  • Loan Term: The duration you have to repay the loan (commonly 15 or 30 years).

Example Calculation

Imagine you are purchasing a home for $450,000 with a 20% down payment ($90,000). You secure a 30-year fixed-rate mortgage at an interest rate of 7%.

Loan Amount: $360,000
Monthly Interest Rate: 0.00583 (7% / 12)
Number of Payments: 360 (30 years x 12 months)
Estimated Monthly Principal & Interest: $2,395.09

Factors That Impact Your Monthly Costs

While our calculator focuses on Principal and Interest (P&I), remember that a total monthly "PITI" payment often includes:

  1. Property Taxes: Levied by your local government and usually paid into an escrow account.
  2. Homeowners Insurance: Required by lenders to protect the asset.
  3. Private Mortgage Insurance (PMI): Typically required if your down payment is less than 20%.
  4. HOA Fees: Monthly dues paid to a Homeowners Association if applicable to your property.

Tips to Lower Your Monthly Payment

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

  • Increase Down Payment: Lowering the loan amount reduces the principal and may eliminate PMI.
  • Improve Credit Score: A higher credit score can help you secure a lower interest rate.
  • Extend the Term: A 30-year mortgage has lower monthly payments than a 15-year mortgage, though you will pay more in total interest over time.
  • Shop Lenders: Interest rates and fees vary between financial institutions; getting multiple quotes is essential.

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