You can use this **mortgage calculator** for determining financial costs that may be associated with different mortgage options you’re considering. Some advanced options are also available to account for annual percentage increases or any extra payments.

Mortgages

Mortgages refer to the loans that are secured by certain property – and this is usually some real estate property. Some of the following major components included in real estate mortgages are as follows:

**Loan Amount:** It's the amount that is borrowed from the bank or lender. The maximum you can borrow usually depends on your affordability or household income. You can use other calculators on this site for determining what your affordability is.

**Down Payment:** It's the upfront payment that you have to make and it is usually specified as percentage of total price. Talking about the US, in case of a down payment under 20 percent of loan total price of the property, you need private mortgage insurance until your principal amount comes under 80 percent of your property price. The rate that is often applied to PMIs is between 0.3 – 1.5 percent of total amount of your loan and there are several factors on which this rate depends. Generally, higher down payments will yield more favorable interest rates.

**Interest Rate:** It's the rate at which interest is charged by the mortgage lenders. It can either be a fixed rate or adjustable rate. This mortgage calculator is used only for the fixed rates, however. As far as ARMs are concerned, there are generally fixed interest rates that apply for a certain time period and after that they are adjusted periodically depending on the market indices. In case of ARMs the risk is partly transferred to the borrowers. So, the initial rates tend to be 0.5 – 2 percent lower compared to fixed rates even for the same term of the loan.

**Loan Term:** It's the agreed time period during which the complete loan has to be repaid. Most commonly used loan terms are 15 and 30 years. One thing to be kept in mind here is that shorter loan terms mean low rates of interest will apply.

Most common option for repaying mortgages is to go with fixed, monthly payments. The payment covers both the interest and the principal payments. For regular 30-year loan terms, most payments in initial few years only cover interest accrued on the loan. A **mortgage calculator** can give clear insights into what you are paying towards the interest and what amount is going into your principal payment.

Early Repayments

It is also possible for the borrowers to cut down the costs of their mortgages with early repayments. There are quite a few options available for repaying the loans earlier. For instance, you can opt for refinancing your mortgage with a loan with better terms and lower interest rate. Besides, you can think of making extra payments towards your loan and making biweekly payments as well. All these options will mean your loan term is cut short and that the interest accrued will be low as well.

How This Mortgage Calculator Works?

This **mortgage calculator** requires you to provide your home price, down payment, loan term and interest rate to perform the calculations. Besides, you can also include some additional options into the calculation like property taxes, PMI insurance, Home Insurance, HOA fee, Start Date and any other costs that may be involved.

Enter all these values into the **mortgage calculator** and hit the calculate button to get the result. The calculation results will show you the monthly payment, down payment, total of your mortgage payments across the term of the loan, total interest and the mortgage payoff date. Besides, there is a tabular representation of your mortgage loan that shows yearly values for beginning balance, interest amount, principal amount and the ending balance.

So, use this **mortgage calculator** for getting all such information about different mortgage options available. Besides, it can also give you a clear idea as to what you should expect to pay towards your loan every month. You can also find out how different additional options are going affect your mortgage.