Take the guess work out of how to calculate your monthly mortgage payment.
Follow these two easy steps from the home buying equation.
Step 1: Determine the first three digits of the loan amount. (Purchase Price of the Home – Downpayment = Loan Amount).
Example Situation: Purchase Price of $250,000 with 3.5% down at 4.5% for 30 years.
$252, 000 x .965 (3.5% downpayment)= $243, 180. First three digits is 243.
Step 2: Multiply the first three digits by the interests rate factor for the loan based on loan term. See Interest Rate Factor Chart Below.
$243 x$5.07= $1232.01 (Principal and Interests Only)
To calculate your mortgage payment including taxes, insurance and PMI, please use our Free Mortgage Calculator.
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