Calculate Your Loan Mortgages Online
Posted by aileen on
April 20, 2008
When purchasing a new home a buyer would instantly compute the interest rates and to determine how long you could pay the principal amount either by monthly or yearly payment. An online mortgage loan calculator is helpful to know exactly the money that has to be prepared for the amortization. But beforehand you have to know the terminologies that will require you to fill in the buttons for calculation.
Purchase price – This is total sales price of your new home in whole dollars. This amount, less any down payment, will be the amount you borrow from your bank or housing loan agency.
Down payment – The percentage of the Purchase price that you plan to pay upfront. If, for example, if it requires you or either you plan to make a $25,000 down payment on a $250,000 home, enter 10 here.
Mortgage term – It determines the number of years over which you’d like to pay your mortgage and enter it here. Common values are 10, 15, and 30.
Interest rate – The actual interest percentage your bank will apply to the amount you borrow. Do not include any Private Mortgage Insurance (PMI) percentages your bank may require.
Property tax – The amount of yearly tax you’ll pay on the value of your property.
Property insurance – Determine the yearly amount to insure your property and enter it here.
PMI – If your down payment is less than 20% of your home’s purchase price, your bank may require you to pay an additional yearly percentage of your home’s purchase price in the form of Private Mortgage Insurance (PMI). If so, enter the PMI percentage here.
First payment date – From these drop-down menus, select the month and year that your mortgage payments will begin.
Amortization – Choose whether you’d like to see your mortgage payment schedule, including principal, interest, tax, insurance, PMI, and balance, on a yearly or monthly basis. If you don’t want to see a detailed amortization schedule, choose don’t show.
Like for example I purchased a one bedroom condominium unit for 5,700 USD with a 20% downpayment, 30 years mortgage term, 11% interest for the loan, assuming I will pay 500 USD for the property tax per year, $ 250 for property insurance, a PMI of 0.52% and starting date of payment is next month— the result is seen on the image below.
