When you can get rid of mortgage insurance : Use the calculator’s amortization schedule to determine when you’ll hit 20 percent equity - the magic number you need on a conventional loan to request that your lender remove private mortgage insurance (PMI).Whether you should pay off your mortgage early : Use the calculator to learn how extra payments can impact how quickly you’ll repay the loan and any interest savings.Whether you should put more or less money down: Use the calculator to weigh different down payment scenarios and how that’ll affect how much you’ll borrow and pay.
Shorter-term loans come with lower interest rates, but higher monthly payments.
Your lender also might collect an extra amount every month to put into escrow, money that the lender (or servicer) then typically pays directly to the local property tax collector and to your insurance carrier. The principal is the amount you borrowed, while the interest is the sum you pay the lender for borrowing it. The major part of your mortgage payment is the principal and the interest. Typical costs included in a mortgage payment This can help you decide whether to prepay your mortgage and by how much. In addition, the calculator allows you to input extra payments (under the “Amortization” tab). You can edit these amounts, or even edit them to zero, as you're shopping for a loan. In the ZIP code field, input your zip code.īankrate's calculator also estimates property taxes, homeowners insurance and homeowners association fees. Our calculator defaults to the current average rate, but you can adjust this percentage. In the Interest rate field, input the rate you expect to pay or are currently paying. In the Loan term field, enter the length of your loan - usually 30 years, but could be 20, 15 or 10. You can input either a dollar amount or percentage. In the Down payment field, input the amount of your down payment (if you're buying) or the amount of equity you have (if you're refinancing). In the Home price field, input the price of the home you’re buying (or the current value of your home if you’re refinancing). Here’s how to use our mortgage calculator to easily estimate payments: