How to Calculate your Monthly Mortgage Payment

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Using the above calculator, you can calculate your monthly payments based on the interest rate, your down payment, the length of the mortgage and the cost of your property.

Step 1

Enter the price of the property - You might have to add the closing costs if you are to add them to your mortgage.

Step 2

Enter the interest rate - The interest rate will vary over the span of your entire mortgage unless you’ve locked it in for a very long time.

Step 3

Enter the length of you entire Mortgage - 15, 20, 25 even 30 years is pretty common for a mortgage. Now I’m starting to see 40, 45 and I’ve even heard of a 50 year mortgage. Many people try and stretch out there mortgage to buy a house beyond their means and this will hurt them in the long run.

Step 4

Enter your Down-payment - Zero down is not something you want to be buying a house with because you’ll just end up paying a greater amount of interest and you might not be able to get the best possible interest rate with a zero down mortgage. Five percent is most likely the average and if you can get ten percent or more, I congratulate you on being a great saver.

Step 5

Your monthly payments will appear once all your info has been inserted - If you can’t afford the down-payment shown, you have four options:

  1. Find a cheaper property
  2. Find a lower interest rate
  3. Up your down payment
  4. Extend the length of your mortgage ( This option is fourth because a longer mortgage is never a good solution. You end up paying thousands of dollars more in interest.
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Filed Under Frugal Living, Home Buying, Real Estate 

Comments

2 Responses to “How to Calculate your Monthly Mortgage Payment”

  1. Roman on April 26th, 2008 8:43 pm

    Thank for the break down! i will be using it next month when i buy my apt.

  2. mortgage » Blog Archive » How to Calculate your Monthly Mortgage Payment on April 27th, 2008 1:03 am

    [...] admin wrote an interesting post today onHere’s a quick excerptMortgage Calculator With the following calculator, you can calculate your monthly payments based on the interest rate, your down payment, the length of the mortgage and the cost of your property. Step 1 Enter the price of the […] [...]

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