Mortgage Payment Calculator - Amortization Schedule
This mortgage payment calculator figures your monthly mortgage payment based on the amount borrowed, loan term, and interest rate. You can also include taxes, insurance, and PMI to calculate your total monthly payment.
When you are done click on the "Create Amortization Schedule" button to create a printable table for handy reference.
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How Much Will Your Monthly Mortgage Payment Be?
You’re looking for a house. You think you’ve found the perfect one.
Or, maybe you need to recalculate your mortgage for refinancing.
What will your monthly mortgage payment be?
That’s an important question. Estimates provided by realtors and mortgage lenders don’t always tell the whole story.
Thankfully, this Mortgage Payment Calculator helps you figure out your total monthly mortgage payment and print a complete amortization schedule for your records. You can include expenses such as real estate taxes, homeowners insurance, and monthly PMI, in addition to your loan amount, interest rate, and term.
Let’s explore the concept of mortgages so that you understand how they work before you finance a home.
Mortgages And Your Budget
Mortgage comes from the Latin “mort”, or to the death. Think “mortician” or “mortality”. The idea is that you pay the loan until it “dies” due to the a-mort-ization of the loan (is paid off).
The bank or mortgage lender loans you a percentage of the home (usually 80% of the purchase price) which is known as the loan-to-value percentage. The mortgage loan will be paid with interest over a certain period of time called a “term.” If you, as the borrower, fail to pay the monthly mortgage payments, you are at risk of foreclosure.
Therefore, it’s critical that you calculate your mortgage payment ahead of time to make sure you can afford it. Using our Budget Calculator, you’ll find it’s wise to keep your housing expenses between 25 and 35 percent of your net income.
When you mortgage a house, a down payment is made. A common down payment amount is 20% of the purchase price. The higher the down payment you make, the smaller the amount you will need to finance, and the smaller your monthly mortgage payment will be.
Your monthly mortgage payment will be allocated into two main portions: a principal portion and an interest portion. Depending on how your loan is set up, you may also pay PMI, real estate taxes, and homeowners insurance with your mortgage payment.
By creating an amortization schedule using our calculator, you’ll find that the interest portion of your payment initially exceeds the principal portion. Over time, this will flip-flop. The more principal you pay down the greater the percentage of each payment dedicated to principal.
It’s good to be aware that you won’t be paying much toward the principal of the mortgage in the beginning. If you want to learn more about how much principal you do need to pay for early payoff check out our Mortgage Payoff Calculator and find out about early payoff strategies – for example, in 15 years instead of 30.
What If You Can’t Pay Your Mortgage?
What if you not only can’t pay off your mortgage early, but you’re missing payments?
Missing mortgage payments could lead to the loss of your property. If you are in financial trouble and you fail to pay your monthly mortgage payments, your mortgage lender has the right to take your home and sell it to others to get their money back. This legal process is called foreclosure.
Before you fall behind in your payments, consider the following options to avoid foreclosure:
By starting on the right foot and making sure you can afford your mortgage payment, you won’t have to worry about the consequences of not paying. Don’t think you can afford a home just because your realtor says it is okay. Their incentives are different from yours.
If you’re in the middle of a mortgage payment crisis, seek help through your mortgage lender and third parties. Don’t give up without trying. You might be surprised what can be worked out if you just ask.
In either case, our Mortgage Payment Calculator can help you by determining your payment and providing a complete amortization schedule for further analysis.
Mortgage Payment Calculator Terms & Definitions
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