How to use the Mortgage Calculator
Using an online mortgage calculator can help you quickly and accurately predict your monthly mortgage payment with just a few pieces of information. It can also show you the total amount of interest you'll pay over the life of your mortgage. To use this calculator, you'll need the following information:
House Price
The dollar amount you expect to pay for a home.
Down Payment
The down payment is money you give to the home's seller. At least 20% down typically lets you avoid mortgage insurance.
Mortgage Term (Years)
This is the length of the mortgage you're considering. For example, if you're buying new, you may choose a mortgage loan that lasts 30 years. On the other hand, a homeowner who is refinancing may opt of a loan that lasts 15 years.
Interest Rate (%)
Estimate the interest rate on a new mortgage by checking Bankrate's mortgage rate tables for your area. Once you have a projected rate (your real-life rate may be different depending on your overall credit picture) you can plug it into the calculator.
Mortgage Principle
This amount is simply the total number of dollars borrowed towards the purchase of the house, how much you'll be paying off over the lifetime of the loan.
Total Payments
Broken up over a certain number of years, this is how many monthly payments you will need to make to pay off the entire principle.
Monthly Payment
Each month, this is the amount of money that will need to go towards the mortgage payment.
