Mortgage Calculator

Simple and easy to use Mortgage Calculator.

  1. Enter the Purchase Price:

    • This is the total cost of the home you are planning to buy.

  2. Enter the Down Payment:

    • You can enter this amount in two ways:

      • Dollars ($): The exact amount of money you will pay upfront.

      • Percentage (%): The percentage of the purchase price that you will pay upfront.

  3. Select the Interest Rate:

    • Enter the annual interest rate of the mortgage loan. This rate affects how much interest you will pay over the life of the loan.

  4. Enter the Mortgage Term:

    • This is the length of time over which you agree to pay back the mortgage, usually given in years. Common terms are 15, 20, or 30 years.

  5. Click on "Calculate":

    • Once you've filled in all the fields, click the "Calculate" button to see the results.

  6. Review the Results:

    • The calculator will display several pieces of information. For more information read the explanation below.

  7. Clear the Form:

    • If you want to perform another calculation with different numbers, click the "Clear" button to reset all fields.

Explanation of Terms and Numbers

  • Purchase Price: The total cost of buying the home.

  • Down Payment: The initial payment you make towards the purchase price of your home. A higher down payment generally means lower monthly payments.

  • Interest Rate: The percentage charged on the loan amount by the lender. It significantly affects the total amount you pay over the life of the loan.

  • Mortgage Term: The duration over which the loan needs to be repaid. Longer terms usually have smaller monthly payments but result in higher total interest costs.

  • Monthly Payment: This includes both the repayment of the principal (the original loan amount) and the interest. Early in the mortgage, a larger portion of each payment goes toward interest.

  • Total Payments over Term: The sum of all monthly payments you will make by the end of the mortgage term.

  • Interest Paid: The total amount of interest you pay over the mortgage term.

  • Principal Paid: The amount of the original loan (principal) that has been paid off with your payments.

  • Balance at End of Term: The remaining mortgage balance at the end of the selected term, which can be useful for understanding equity accumulation or if considering refinancing options.

This calculator can be a valuable tool for budgeting and financial planning when buying a home. It helps you understand the long-term financial commitment of a mortgage, including how much of your payments go towards paying down the loan versus paying interest.

Paying off your mortgage faster is a goal that many homeowners strive for. One way to achieve this is by making extra payments towards your principal balance. By doing so, you can significantly reduce the amount of interest you pay over the life of the loan. It is also important to be aware of any mortgage penalties that may be associated with paying off your mortgage early. Some lenders impose penalties for prepayment, so it is crucial to review your mortgage agreement carefully. Additionally, understanding the differences between fixed and variable mortgages is essential. A fixed mortgage offers stability with a consistent interest rate throughout the term, while a variable mortgage has a fluctuating interest rate that can be affected by market conditions. By considering these factors, you can make informed decisions to pay off your mortgage faster and save money in the long run.