![]() Mortgage insurance: Also known as private mortgage insurance-or PMI-this protects the lender in case you default on your mortgage.Otherwise, contact your local insurance agent to get a quote. If you’re considering a home, ask the real estate agent if they have any information about current insurance costs. Homeowners insurance: Homeowners insurance is required to protect you and your lender in the case of damage to your home.This number can usually be viewed on your recorder or assessor’s website-wherever you access property cards and other real estate records. Property taxes: Property taxes are imposed by your local tax authority.Your interest rate is expressed as a percentage and may be fixed or variable. ![]() Interest rate: This is essentially what the lender is charging you to borrow the money.A portion of each payment will go toward paying this off, so the number will go down as you make monthly payments. Principal: Principal is the amount of money you borrowed on the mortgage.Here’s what to look for when reviewing your mortgage costs and fees: ![]() It also can be difficult to understand what you’re paying for-and why. If this is your first time shopping for a mortgage, the terminology can be intimidating. Based on your home’s estimated sale price, down payment and projected interest rate, the calculator can help inform what your payments could look like. Why Should You Use a Mortgage Calculator?Ī mortgage calculator can help you determine how much you’ll pay over the life of your loan. To see the full breakdown, check out our mortgage payoff calculator. It helps homeowners and would-be homeowners see what paying more money would mean for their monthly budget and their overall wealth profile. The formula behind paying down a mortgage is complex, but it can be handy. How To Break Down the Mortgage Payment Formula You can also toggle between the annual and monthly view to see a breakdown of each monthly payment. Navigate to the amortization schedule tab to view how much of your annual payments will go toward interest and principal. This portion of the calculator lets you view your monthly payments as well as your estimated payoff month. Once you enter all of the relevant information on the left side of the screen, the calculator will auto-populate your payment breakdown on the right. ![]() If you don’t have these numbers in front of you, some information may be available through your real estate agent or your local property assessor’s website. If you have the information available, plug in your monthly property tax, private mortgage insurance (PMI), homeowners insurance and HOA fees. This portion of the calculator is optional, but it can help give you a more accurate picture of your potential monthly payments.
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