Mortgage Payment Calculator

See how much you’ll pay and assess the benefits of extra payments

If you’re getting ready to buy a home, you want to know you’ll be able to afford your new mortgage loan payments before you make such an important decision. Using a mortgage payment calculator can help you define your price range and put you in a better position for negotiating the terms of your mortgage with your lender.

This mortgage calculator also shows how paying extra money on your mortgage will affect how soon you can pay your home off. This can help you determine if paying extra money to your mortgage will provide a benefit, or if your money would be better spent paying off other types of debts, such as your credit cards.

If you still have questions about buying your new home or you want to talk to an expert about paying off different kinds of debts, give us a call at (844)-402-3073 to speak with a HUD-certified housing counsellor.

How to Use Our Mortgage Calculator

Step 1: Insert the Price of Home You Want to Purchase

You can use the price of the property listing or its latest appraisal. If you want to know the market value of a home you want to purchase, it’s also good to use a property value estimator.

Price negotiation is common between home sellers and homebuyers. So you may be able to get a lower price than the original listing. Once you have the accurate purchase price, enter it on our mortgage payment calculator.

Step 2: Loan Term in Years

Mortgages have two common loan terms – the 15-year mortgage term and the 30-year mortgage term. A mortgage term is the length of time you’ll be paying the loan before you can fully own a house.

A 15-year mortgage has a higher monthly payment compared to a 30-year mortgage, but it’s more affordable when you compute your payment on the whole. In comparison, a 30-year mortgage makes your monthly payment affordable, but it will cost you more in interest over the long run. Ask the lender to determine how much you’ll pay for the money you borrow.

Step 3: Interest Rate

A mortgage interest rate is an amount due per period of a loan, as a proportion of the amount lent to you by the lender. The interest rate of your mortgage may depend on the principal amount lent, the mortgage term, your down payment, or your credit score. For instance, the lower your score, the higher the interest rate. You can shop around to get the best interest rate given your credit score.

Step 4: Down Payment

The down payment is the amount you give to the home seller as an initial payment. It’s common for mortgage brokers to ask for a down payment of at least 5% if you have a good credit score. Sometimes, they can require up to 20% of the price of the property, especially if your credit is poor. For example, a person with poor credit purchasing a $300,000 home must make a down payment of $60,000. Putting down more can also lower the mortgage interest rate. If you put down an amount less than 20% of the property price, the lender may require you to get private mortgage insurance.

Step 5: Interest Term

Interest term is the length of time you’ll be paying the principal amount plus its present interest rate. For instance, a 30-year mortgage may have an interest term of 5 years. At the end of a term, you have to renew the mortgage to continue making payments at the same rate or a new rate depending on your financial circumstances at the time.

A mortgage payment is a payment you make on a loan that enables you to purchase a house. This payment consists of the principal amount of the loan and interest.

Sometimes, it also includes taxes and insurance if the loan has an escrow account.

Almost every homeowner who takes out a mortgage has to make mortgage payments every month for a fixed number of years. The length of time paying your mortgage can take up to 15 to 30 years. The advantage of getting a mortgage when buying a home is that you don’t need to put down a huge amount of money on the spot.

The principal, interest, taxes and insurance usually comprise your mortgage payment.

Yes, however, you may have to go through a private lender.

In addition, your interest rate will be 10-15% or higher.

How to Pay Down Your Mortgage Faster

It can be stressful to think of paying a mortgage for 15 or 30 years. The good thing is that there are ways to pay off your mortgage faster. Many people who have mortgages adjust their payment frequency to biweekly to reduce the interest that accrues over a month.

There are also people who save up money to make an extra payment once a year, and there are others who make an extra payment for the principal each month. Other ways to reduce the life of your mortgage include:

Getting a side gig
Putting windfall cash towards extra mortgage payments
Renting out a room to a friend or family member
Refinance (if you can get a better rate)
Buy a home with no other debt

Paying off your mortgage faster can decrease the total payment you make for the mortgage since you basically reduce the number of months that carry interest payments.

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