When it comes to buy a new home one thing that strikes on our mind is financial condition because not everyone can afford a new home. So to make this dream true loan or mortgage plays an important role.
This mortgage calculator will help to take the full estimation of total cost to buy a new home. It includes monthly payment of house as well as interest, property taxes and insurance. You can also visually view the amortization graph for getting better estimation of mortgage payments. In the mortgage calculations, you will find the variation of different factors like price, down payment and many more.
Mortgage Calculator Tip – Interest Only Loans:
Mortgage Calculator Tip – Interest Only Loans:To calculate interest only payment loans, simply multiple the annual interest note rate by the loan amount and then divide it by 12. That will be your interest only monthly payment.
Details about this mortgage calculator:
Following are some important factors to calculate mortgage value:
- Home Price: While you are buying a new house broker will tell yo/u about initial rate of the home.
- Down Payment: This is the second step in mortgage calculator to purchase a home, it is the initial amount of money that home buyer will have to pay. In other words you can say that partial payment to buy a home.
- Loan Term: Loan term refers to terms and conditions included in borrowing home. It consist of loan repayment period. This includes penalty fees, interest rate and any other important conditions may also apply.
- Loan APR: It is the actual cost of Home loan you have taken. APR calculate the percentage of loan. Mortgage insurance, most closing costs, discount points and loan orientation fees.
- Property Tax: In this you can search online regarding your property details with property ID and pay your property tax. It includes full detail about property owner by country, state and municipality.
- HOA Fees: HOA stands for home owner association fee that is being paid by homeowners living with HOA community for maintenance and development.
Cost included in monthly payment:
Necessary terms included in a mortgage loan are:
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- Principal: It is the total amount of money that needs to pay completely for buying property.
- Interest: It is charged on loan service that is taken to purchase a home. It is calculated as percentage of full mortgage loan. Interest in mortgage loan could be fixed, variable or compounding.
- Insurance: In case of any default borrower can claim insurance. But you will have to pay monthly payment to avail this service.
- Taxes: Mortgage taxes come under property tax. In this we can calculate value of property for which tax is imposed.
How do you calculate monthly mortgage payment?
By using below mentioned formula you can easily calculate the monthly mortgage payment:
begin{aligned} &M = \frac{ P \left [ (1 + i) ^ n \right ] }{ \left [ (1 + i) ^ n – 1 \right ] } \\ &\textbf{where:} \\ &P = \text{Principal loan amount (the amount you borrow)} \\ &i = \text{Monthly interest rate} \\ &n = \text{Number of months required to repay the loan} \\ \end{aligned}
where M= monthly mortgage payment
P = Plug in the principal
i= monthly interest rate
n= no of months of the loan term