Mortgage calculator

 

 

A mortgage calculator is an online financial tool that allows you to estimate the monthly payments of a mortgage depending on several factors, such as the loan amount, the interest rate, the loan term and taxes. These calculators are useful for future housing buyers and those who wish to obtain a clear vision of how the different elements will affect their monthly payments. Here is a general description of the typical fields that you will find in a mortgage calculator:

 

Loan amount (main):

It is the total amount of the mortgage loan that you plan to request.

Interest rate:

It represents the annual interest that applies to the loan. It can be a fixed or adjustable rate.

 

Loan term:

It is the period of time in which you plan to pay the loan. It is commonly expressed in years (for example, 15, 20 or 30 years).

 

Property taxes:

Some calculators allow you to enter the estimated cost of property taxes.

 

Owner insurance (Hazard Insurance):

You can enter the cost of owner insurance if you know it.

 

Private Mortgage Insurance (PMI):

If your initial payment is less than 20%, you may need to pay private mortgage insurance. You can enter this cost if it applies.

 

The calculator will provide results that include:

Total monthly payment: the sum of capital payments, interest, taxes and insurance.

Monthly Capital Payment: The part of the payment destined to reduce the balance of the loan.

Monthly interest payment: the part of the payment allocated to the accumulated interest.

Monthly tax payment: the portion destined to cover property taxes.

Monthly insurance payment: the portion destined to cover the owner insurance and, if necessary, the private mortgage insurance.

These calculators are useful tools to plan and better understand the structure of a mortgage payments, but keep in mind that the results are estimates and may vary depending on the specific conditions of the loan and the market. It is always advisable to speak with a financial advisor or a lender to obtain more precise and personalized information about your situation.