Mortgage Calculator
Mortgage Calculator
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Total Interest Paid:
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What is a Mortgage?
A mortgage is a loan used to purchase or maintain a home, land, or other real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments divided into principal and interest.
How to Calculate Your Mortgage - Step by Step Guide
Step 1: Determine Loan Amount
This is the total amount you are borrowing from the lender.
Step 2: Enter Interest Rate
The annual interest rate charged on the loan.
Step 3: Set Loan Term
The duration of the loan in years (e.g., 15, 30).
Step 4: Calculate Monthly Payment
Use the formula to calculate your monthly payment:
Frequently Asked Questions
What is included in the monthly payment?
The monthly payment includes both principal and interest.
Can I pay off my mortgage early?
Yes, but check with your lender for any penalties.
Frequently Asked Questions
What is included in the monthly payment?
The monthly payment includes both principal and interest.
Can I pay off my mortgage early?
Yes, but check with your lender for any penalties.
What is a fixed-rate mortgage?
A fixed-rate mortgage has an interest rate that remains constant throughout the life of the loan.
What is an adjustable-rate mortgage?
An adjustable-rate mortgage has an interest rate that can change periodically based on market conditions.
What is PMI?
Private Mortgage Insurance (PMI) is required if your down payment is less than 20% of the home's value.
What is an escrow account?
An escrow account is used to collect and hold funds for property taxes and insurance.
How does credit score affect my mortgage?
A higher credit score can help you secure a lower interest rate and better loan terms.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal, while APR includes additional fees and costs associated with the loan.
What happens if I miss a mortgage payment?
Missing a payment can result in late fees, damage to your credit score, and potentially foreclosure.
Can I refinance my mortgage?
Yes, refinancing allows you to replace your current mortgage with a new one, often with better terms.
