Mortgage Loan Payment Calculator"Just tell me what my payment is !.. "
Not what you were looking for? Try Searching again... Custom Search 1. your taxes, 2. your insurance, and 3. p.m.i. (all are explained below). How to Use a Mortgage CalculatorMost mortgage payment calculators are pretty user friendly. You just enter:1. the price of the home (or the amount you will be refinancing) 2. the down payment amount ("0" if you are figuring for refinancing a mortgage rate) 3. the term—that means the length of the loan (usually 30 years), and 4. the interest rate you plan to secure for your mortgage. Then, you hit "calculate", and the mortgage loan payment calculator will figure your monthly payment for you and you're all done, right! WRONG!!! Most mortgage loan payment calculators will only give you the main portion of your monthly payment. That main portion consists of two parts: principal and interest. • The principal part goes towards paying down your loan balance. The balance goes down every time you make a payment. • The interest part goes to the lender. Interest, of course, is the fee the lender charges for letting you borrow the money to pay for your house. I know, I know, that's pretty basic, but in my years as a realtor, I learned never to give anyone the benefit of the doubt when it comes to their knowledge of mortgages. OK—on we go. Although the principal and interest portion makes up the lion's share of your mortgage payment, there can be as many as three other amounts tacked on to your monthly mortgage payment. These are taxes, insurance, and p.m.i. Most folks do not consider these amounts when using a mortgage loan payment calculator. And they end up being really disappointed when their payment is figured by a loan officer and it is several hundred dollars higher than the payment reflected when they used the mortgage loan calculator. The calculator at the top of this page gives estimates on two out of three of these "extras", namely taxes and p.m.i. Add another $75 to cover home owner's insurance and you will have a good payment estimate. Mortgage loans...the hidden feesThe three amounts that are commonly added onto your monthly mortgage payment are:2. homeowner's insurance escrow payments 3. p.m.i. (private mortgage insurance) payments Once you use the mortgage loan calculator to figure your principal and interest payment, you will need to add on these three amounts . The only way to properly use a mortgage loan payment calculator is to make sure your payment includes not only principal and interest, but taxes, insurance, and p.m.i amounts as well. Then and only then will you have a solid estimate of what your monthly mortgage payment will be when using a mortgage payment calculator. What a Mortgage Calculator will not tell youLearn What a Mortgage Calculator will not tell youExit the mortgage loan payment calculator page more about creditAbout Cash Back Credit CardsHow to improve your Credit score What is the Minimum Credit Score for a Home Mortgage loan?
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