Mortgage Rate Calculator Interest Only

Your Estimated Monthly Payment

$0.00

function calculateMortgage() { var loanAmount = parseFloat(document.getElementById('loanAmount').value); var annualRate = parseFloat(document.getElementById('interestRate').value); var loanTermYears = parseFloat(document.getElementById('loanTerm').value); var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var resultDiv = document.getElementById('mortgageResult'); var paymentDisplay = document.getElementById('paymentOutput'); var interestDisplay = document.getElementById('totalInterestOutput'); var totalDisplay = document.getElementById('totalPayableOutput'); if (isNaN(loanAmount) || isNaN(annualRate) || isNaN(loanTermYears) || loanAmount <= 0) { alert("Please enter valid positive numbers for Loan Amount, Rate, and Term."); return; } var principal = loanAmount – downPayment; if (principal <= 0) { alert("Down payment cannot be equal to or greater than the loan amount."); return; } var monthlyRate = annualRate / 100 / 12; var numberOfPayments = loanTermYears * 12; var monthlyPayment; if (monthlyRate === 0) { monthlyPayment = principal / numberOfPayments; } else { var x = Math.pow(1 + monthlyRate, numberOfPayments); monthlyPayment = (principal * x * monthlyRate) / (x – 1); } var totalPayable = monthlyPayment * numberOfPayments; var totalInterest = totalPayable – principal; resultDiv.style.display = "block"; paymentDisplay.innerHTML = "$" + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); interestDisplay.innerHTML = "Total Interest Paid over " + loanTermYears + " years: $" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); totalDisplay.innerHTML = "Total Amount Paid: $" + totalPayable.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); }

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How to Use the Mortgage Payment Calculator

Planning your dream home starts with understanding your budget. This mortgage calculator helps you estimate your monthly housing costs by factoring in the loan amount, interest rates, and loan duration. To get an accurate estimate, follow these steps:

• Loan Amount: Enter the total purchase price of the home.
• Down Payment: Enter the cash amount you plan to pay upfront. A higher down payment reduces your monthly liability.
• Interest Rate: Enter the annual percentage rate (APR) provided by your lender. Even a 0.5% difference can save you thousands over time.
• Loan Term: Most conventional loans are 15 or 30 years. Shorter terms have higher monthly payments but lower total interest costs.

Understanding Principal and Interest

Your monthly mortgage payment is primarily composed of two parts: Principal (the money that goes toward paying off the loan balance) and Interest (the fee paid to the lender for borrowing the money). In the early years of a mortgage, a larger portion of your payment goes toward interest. As the balance decreases, more of your payment is applied to the principal.

Example Calculation

Scenario	Monthly Payment	Total Interest Paid
$300k Loan, 30 Year, 6% Rate	$1,798.65	$347,514
$300k Loan, 15 Year, 6% Rate	$2,531.57	$155,682

Other Costs to Consider

While this tool calculates the base payment (Principal + Interest), remember that your actual "all-in" monthly cost may also include:

1. Property Taxes: Calculated based on your home's value and local tax rates.
2. Homeowners Insurance: Required by lenders to protect the asset.
3. Private Mortgage Insurance (PMI): Usually required if your down payment is less than 20%.
4. HOA Fees: Monthly or annual dues for homeowners association services.

It is generally recommended that your total housing payment should not exceed 28% of your gross monthly income.