# Calculate Mortgage Refinance or Home Purchase Payments

Run some numbers and see what is comfortable for you. Our Mortgage Payment Calculator allows you to easily determine what your monthly payments would be on a fixed-rate mortgage of a given amount, length (term) and interest rate. It also takes into account property tax, homeowner's insurance and private mortgage insurance (PMI) information to provide you with the most accurate calculation possible of what your mortgage payments would be.

Because you also enter the property value, the calculator can let you know if you're going to need PMI or not. If you do, it calculates the length of time you'll need to have PMI based on the regular amortization of the loan, that is, over the course of time through making regular payments. (PMI is required if you make a down payment of less than 20 percent or have less than 20 percent equity when refinancing; it may be canceled once you exceed 20 percent equity). But you will need to prove current value.

**FAQ: Great tool for anyone refinancing or buying a home. Are you refinancing or purchasing a home? If so, this is a good way to change terms of a prospective loan length and learn what payment may work best for you.**

### Frequently asked questions

To calculate your APR on a mortgage, you will use our mortgage APR calculator. You can do so by entering the loan amount, the term in years, interest rate, and an option for amortization. Fill in other parts of closing costs, and your APR will be displayed immediately.

The Annual Percentage Rate (APR) on a home loan is the true annual cost of your home loan credits. It includes the mortgage interest rate, points, and all other parts of a lender’s closing cost fees.

You can use our mortgage calculator to get an estimate of what your monthly payment will be. Fill in the loan information such as the amount, term, and interest rate in the boxes provided. When you report amortization, the monthly payment will be displayed.

To know how much interest you’ll pay on a home loan, use a mortgage calculator like the one on this page. All you have to do is enter required information like the loan amount, your down payment, credit score, and so on.

Your APR will determine how much you end up paying for your mortgage because it covers your mortgage interest rate and all the fees to be paid to your lender and/or broker. The higher the APR, the higher the mortgage cost.

Your mortgage interest rate is the money you’ll pay every year, to take a mortgage loan. The APR, on the other hand, covers this mortgage interest rate and any additional incurred charges. Hence, the APR on a mortgage loan is usually higher than the mortgage interest rate.

There is no fixed ideal APR for your mortgage, but the right one for you depends on what you’re looking for. To get the best deal, look at all the cost items and the total interest rate charged and see how it affects your budget.

The Annual Percentage Rate (APR) for your mortgage is a reflection of the mortgage’s true cost. If it is high, then your overall mortgage cost will be high as well, so it is best to find out what is best suited to your budget.

Your mortgage loan APR includes fees like closing costs, discount points, origination fees, and other such fees that are added as part of the loan. A change in any of these will affect your APR.

To calculate your total finance charge on a fixed term mortgage, multiply the number of times you’ll have to make payments by the total monthly payment amount, then subtract the principal from the answer you get.

## How to calculate mortgage payments

To use the Mortgage Payment Calculator, start by entering:

- the amount you wish to borrow
- the interest rate
- the length of the loan in years and
- value of the property

The last of these is used to determine if you need to pay for PMI or not, and if so, how long you will need to carry it.

Click next, than on the next page, enter annual costs of:

- property taxes
- homeowner's insurance and
- private mortgage insurance (PMI)

Note that you can enter these either as a dollar amount or as a percentage of the loan amount.

It's ok to estimate these last three if you don't have exact figures, but the more accurate these figures are, the more accurate your monthly mortgage payment calculation will be. You can get property tax information from the clerk's office of the community the home is located in and an estimate for homeowner's insurance from any insurance company.

PMI varies according to your credit score and the size of your down payment, but is usually an annual charge of 0.5%-1.0% of the loan amount. There are other PMI options that include a slightly higher interest rate which eliminates monthly or annual charges. Ask a Loan Officer about these options. For a more precise estimate, you can look up the "PMI rate charts" or "PMI rate tables" that many mortgage insurance companies maintain online.

**FAQ: There are other PMI options that include a slightly higher interest rate which eliminates monthly or annual PMI charges. Have you checked with your lender on these options?**

## Customize Loan Terms for Affordability

Even if you decide to do a normal mortgage loan term such as a 30 year or a 15 year fixed rate mortgage, you can still use our calculator to run various scenarios on specific terms to see what that payment would be. You can use this tool to calculate say a 10 year term or a 22 year term payment etc. (using that payment number to pay that additional amount to the lender servicer).

**FAQ: For example, you decide on a 30 year fixed rate loan and want to pay it off in 20 years. Calculate the 30 year payment then change the term to 20 years and see what the payment difference is. Pay that additional difference each month to the ****lender servicer**** and the loan will be paid off in 20 years instead of 30 years. **

## More ways to use the Mortgage Payment Calculator

There are several ways to use the standard Mortgage Payment Calculator aside from simply determining what a mortgage refinance or a home purchase of a certain loan amount and interest rate will cost you. You can vary the interest rate slightly to see the impact of rate fluctuations and how much you might save or pay more if rates change before you lock your rate. You can vary the loan amount to see how changing the size of your down payment would affect your monthly payment. You can compare monthly payments for different homes at different prices.

You can also see how shortening or lengthening the loan term (the time it takes to pay off the mortgage) affects the monthly payment. Because shorter-term mortgages have lower rates than longer ones do, and paying off a loan faster reduces interest compounding, the monthly payments for a shorter-term mortgage may be less than you expect.

**FAQ: Explore all the various options with this Tool. Buying a home or refinancing to a lower mortgage rate or shorter loan term? Get the numbers and see what is most comfortable for you.**

## Other Mortgage and Financial Calculators

In addition to the standard mortgage calculator, this page lets you access more than 100 other financial calculators covering a broad variety of situations. Choose from calculators covering various aspects of mortgages, auto loans, investments, student loans, taxes, retirement planning and more.

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