how do i figure out a monthly payment on a mortgage?

Question

i'm not sure how to do the math in order to calculate a mortgage payment. if i'm interested in a house that's 150,000 and i'm able to put down $30,000 and i got a mortgage rate of 6%, what is the monthly payment on this? and how do i do the math so that i can estimate on other properties that i might see? is there a formula?

Answer 1

Don't forget to factor in your property taxes, PMI and insurance when figuring your monthly payment. Those are not included in online calculators.

Answer 2

Your mortgage payment is made up of Principal, Interest, Taxes, and Insurance (commonly referred to as PITI). If you are planning to take out a 30 year fixed mortgage, your monthly principal and interest payment, given the above scenario, would be $719.46 (this assumes a $120K mortgage -- $150K purchase price, less $30K downpayment). To find out your full mortgage payment, you will need to find out the annual taxes, divide that number by 12 (12 months in a year), and add that amount to the monthly payment above. You should also get an estimate on the annual insurance premium, divide that by 12, and add that amount to the above (call one or two property insurance companies and ask for an estimate).

Note: you will not have to pay primary mortgage insurance (PMI), because you are putting at least 20% down (30K is 20% of 150K)

I was able to do the math using a financial calculator, but you can do an internet search using the words "interest rate factor chart", and you will get a table w/instuctions on how to calculate the monthly principal and interest (if you carry the chart with you, you can calculate monthly payments any time, even if you don't have immediate access to a computer). To the P&I, just add the monthly taxes and insurance.

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Answer 3

There are a number of mortgage calculators available on the Internet - do a search on "mortgage calculator" and use one of them, you don't want to mess with doing that math yourself, it's complicated.

Remember that the answer you get will just be principal and interest. Your actual payment will include insurance and real estate taxes - those can vary a lot depending on the cost of the house and its location, but often add hundreds of dollars per month to the mortgage payment.

Answer 4

If you have access to a computer, then there are several mortgage calculators on the web.

Otherwise, all you need to do is figure out how much interest you would pay total on the loan, so take the loan amount of $120,000 and multiply it by .06. So that equates to $7200 in interest per year. Divide that by twelve, and you'll get your monthly INTEREST-ONLY payment of $600. Divide the principal amount ($120,000) by how many payments the loan has, which is 360 (360 months= 30 years). This gives you a total principal and interest payment of $933.33 per month.

Answer 5

most of the website has mortgage calculator.
if you want to do it the hard way, here is the formula.
some of the website circulating a copied formula with a minor error. my formula is good for canada and us.

compounded:
m=1 compounded annually
m=2 compounded semi-annually used in canada
m=4 compounded quarterly
m=12 compounded monthly used in us
m=52 compounded weekly
m=365 compounded daily

yr= # of yr amortized
n=m*yr
%int=% annual interest
int=%int/100/m

pv=outstanding mortg principal
f2=equal payment factor
f1=interest portion of equal monthly payment
pmt=equal monthly payment
in writing the mortg schedule, equal monthly payment is equal to principal portion plus interest portion. as time goes on the interest portion is decreasing while the principal portion is increasing.

pmt = f1/f2

f2 = (1 - (1 + int) ^ ( - n))

f1 = pv * ((1 + int) ^ (m / 12) - 1)

in your question, pv = 120000 %int = 6
plug this input into my computer
in canada m=2 yr=25 pmt=$767.77 per month
in us m=12 yr=25 pmt= $773.16 per month

Answer 6

In the UK if you had a £120,000 mortgage it would be around £1200 a month

Not sure how it works where you guys are.

Answer 7

http://www.mortgage-calc.com/mortgage/simple.php

Answer 8

go to www.WeLoan.us and click on the mortgage calc. on the top link its highlighted in green

Answer 9

there are many calculators on websites check them out

Answer 10

go to bankrate.com, they have calculators there but they also have national averages on loans and stuff.