How Much House Can You Afford?
This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
Purchase & Financing Information
Mortgage Payment Information
Down Payment:
Amount Financed:
Monthly Payment:
Since you are putting LESS than 20% down, you will need to pay PMI (Private Mortgage Insurance), which tends to be about $55 per month for every $100,000 financed (until you have paid off 20% of your loan).
This could add to your monthly payment.
Insured Monthly Payment:
Residential (or Property) Taxes are a little harder to figure out... the average residential tax rate seems to be around $14 per year for every $1,000 of your property's assessed value. Let's say that your property's assessed value is 85% of what you actually paid for it - . This would mean that your yearly residential taxes will be around .
This could add to your monthly payment.
TOTAL Monthly Payment:
Calculations and Amortization
1
The down payment = The price of the home multiplied by the percentage down divided by 100 (for 5% down becomes 5/100 or 0.05)
= X ( / 100)
2
The interest rate = The annual interest percentage divided by 100
= % / 100
The monthly factor = The result of the following formula:
3
The monthly interest rate = The annual interest rate divided by 12 (for the 12 months in a year)
= / 12
4
The monthly term of the loan in months = The number of years you've taken the loan out for times 12
Months = Years X 12
5
The monthly payment is figured out using the following formula:
Monthly Payment = X ( / (1 - ((1 + ) - )))
The amortization breaks down how much of your monthly payment goes towards the bank's interest, and how much goes into paying off the principal of your loan.
Amortization for Monthly Payment: $ over years