Monthly Payment Calculator
How much home can you really afford? (Hint: it’s not just the price of the home.) There are other costs that must be factored into your monthly mortgage payment, including loan term, interest rate, homeowners insurance and property taxes.
This mortgage payment calculator lets you estimate your monthly payment and is an excellent budgeting tool, whether you’re buying a home or considering a refinance. Then, when you’re ready to purchase a home, connect with an independent mortgage broker to help you get started and walk you through the home loan process.
What is accounted for in your monthly payment?
- Home Price — The final selling price of the home as determined by an agreement between the buyer and the seller.
- Loan Term — The number of years you have to pay back the home loan, which is typically 15, 20 or 30 years.
- Interest Rate — The rate of interest charged on a mortgage, which can be fixed or variable.
- Homeowners Insurance — Financial protection against losses and damages to the home.
- Property Taxes — Tax paid on an owned property that is based on the value of the home, including land.
The equation for mortgage payments
M = P [ r(1+r)^n ] / [ (1+r^n) - 1]
- M = The total monthly mortgage payment.
- P = The principal loan amount.
- r = Your monthly interest rate. Lenders provide you an annual rate so you’ll need to divide that figure by 12 (the number of months in a year) to get the monthly rate. If your interest rate is 5%, your monthly rate would be 0.004167 (0.05/12=0.004167)
- n = Number of payments over the loan’s lifetime. Multiply the number of years in your loan term by 12 (the number of months in a year) to get the number of payments for your loan. For example, a 30-year fixed mortgage would have 360 payments (30x12=360)
Deciding how much house you can afford.
Get started by working with an independent mortgage broker today. An independent mortgage broker will help you get approved for a monthly payment and loan terms that best fit your financial situation. Whether you’re purchasing a new home or refinancing your existing, use the calculator to see how your monthly payment changes based on home price, down payment, interest rate, and loan term.