If I have a 400k mortgage at 6% fixed interest, how much is my monthly payment going to be? Of this, how much is the interest and how much is the principal? Is there any online calculator that accurately shows me the payment?
2006-12-10 12:29:37 · 3 answers · asked by avatar 2 in Business & Finance ➔ Renting & Real Estate
There are numerous online calculators, including the link you got, and actually almost every real estate site I've seen has a link to a mortgage calculator.
The way mortgage works is that the interest gets paid up front. So if your first payment is $2000, most likely (I'm paraphrasing, but am not far off), $1960 of that goes to interest, and only $40 goes to principal. Over time, the ratio of interest to principal changes, and near the end of your loan (if you keep it the full term), almost all payment goes to principal and very little to interest.
There is a table that shows you that, it's called an amortization table. But what you should take away from it is that banks get theirs up front. Most younger people think that they'll bump up their payments much later when they're (hopefully) earning more, but actually this is kind of silly, because near the end of the loan you're just paying principal anyway, and it won't get you any benefit. What is much better is to pay as much as possible early on, get your principal reduced, and your loan obligation over time will be much smaller.
Also keep in mind that beyond just the mortgage payment, some loans bundle in insurance and taxes with the payment. If yours is set up that way, your monthly payments will be higher because you're paying the property taxes as well. If a $400k house has $8k in taxes, then that's another $650/month you have to pay over and above the mortgage.
Good luck!
2006-12-10 12:43:33 · answer #1 · answered by T J 6 · 0⤊ 0⤋
The amount of your payment depends on the term of the mortgage. A 30 year mortgage has a lower payment than a 20 year mortgage. And the amount of interest as part of the payment falls continually month by month as the amount of the loan is amortized.
The internet is load with mortgage calculators.
30 years would be $2398.20 a month.
http://www.mortgage-calc.com/mortgage/simple.php
2006-12-10 12:40:03 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Try this one
http://www.hsh.com/calc-amort.html
2006-12-10 12:33:24 · answer #3 · answered by Papa John 6 · 0⤊ 0⤋