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How to Use Our Mortgage Calculator

4 min read

How to Use Our Mortgage Calculator

Our Mortgage Calculator is designed to give you a clear, accurate picture of what your home loan will actually cost. Here is how to get the most out of it.

Entering Your Inputs

Start with the three essential fields:

  • Home Price -- Enter the full purchase price of the home you are considering. If you are just exploring, try a range of values to see how price affects your payment.
  • Down Payment -- Enter either a dollar amount or a percentage. Remember that putting down less than 20% typically means you will pay private mortgage insurance (PMI), which adds to your monthly cost.
  • Interest Rate -- Use the rate you have been quoted by a lender, or check current average rates online. Even a 0.25% difference can save or cost you thousands over the life of the loan.
  • Loan Term -- Choose between 15 and 30 years. A 15-year term means higher monthly payments but dramatically less total interest.

Understanding Your Results

The calculator produces several key outputs:

Monthly Payment -- Your total monthly obligation including principal and interest. This is the number most people care about first.

Total Interest Paid -- The total amount you will pay in interest over the full loan term. This number often surprises first-time buyers -- on a 30-year loan, you may pay nearly as much in interest as the original loan amount.

Amortization Schedule -- A month-by-month breakdown showing how each payment splits between principal and interest. In the early years, most of your payment goes toward interest. This shifts gradually so that by the final years, nearly all of each payment reduces your balance.

Tips for Better Results

Run multiple scenarios. Change one variable at a time to see its impact. Try a 15-year versus 30-year term, or see what happens if you put 10% down instead of 20%.

Include all costs. Your mortgage payment is not your only housing cost. Factor in property taxes, homeowner's insurance, and PMI to get a realistic monthly budget.

Use it before house hunting. Knowing your comfortable payment range before you start looking prevents the emotional trap of falling in love with a home you cannot afford.

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