Mortgage Loan Payment Calculator | MortgageLoanPaymentCalculator.info

How to Figure a Mortgage Payment – A Quick and Easy Way to Calculate Payments in Your Head
By Lyn Collier

There are several ways to calculate monthly mortgage PITI payments. PITI stands for Principal, Interest, Taxes (property taxes) and Insurance (home owner’s insurance).

• You could use a long, complex formula like: P = L[c(1 %2B c)n]/[(1 %2B c)n - 1] Does that sound fun to you? Me neither.
• You can use an on-line calculator. They are all different, though. Some are good, some are not. But if you are out house shopping and do not have internet access – not an option.
• You can even use a special, hand-held realtor calculator that will prompt you step by step to enter all the variables like: home price, down payment amount, interest rate, length of the loan, etc., then it will calculate the monthly mortgage PITI payment. However, these calculators are expensive, and unless you are a realtor, you will no longer need it once you find your home or refinance – not a cost-effective option.

You need a quick and easy way to figure your payment in your head, or maybe with the calculator in your cell phone.

Believe it or not, there is a way. It is very straightforward and will give you a ballpark estimate of your PITI payment.

Are you ready for this? It is super simple – just a one step multiplication problem. OK. Here it is. To estimate your monthly mortgage PITI payment multiply the amount of your loan by .008 . That’s it…seriously! (As long as mortgage interest rates don’t change drastically from what is available in Jan 09)

• If you are going to buy a $200,000 house, and you can pay $10,000 down, your loan amount will be about $190,000.
• The math looks like this: $190,000 x .008.
• Plug those numbers into your calculator.
• Your monthly mortgage PITI payment will be about $1520 per month.

Be advised, this figure is only an estimate - a simple way to get an estimate when you are not able to get to a computer. If you are in contact with a realtor or loan officer, they can give you a much more accurate idea of your monthly mortgage PITI payment.

Learn from Lyn Collier’s years of Real Estate experience by reading more simple, to-the-point articles about avoiding costly mistakes and how to find the best best mortgage calculator at http://www.e-home-mortgage-loans.com/index.html

Article Source: http://EzineArticles.com/?expert=Lyn_Collier
http://EzineArticles.com/?How-to-Figure-a-Mortgage-Payment—A-Quick-and-Easy-Way-to-Calculate-Payments-in-Your-Head&id=1889742

Calculate Your Borrowing Power Using a Mortgage Calculator
By Chris G Bell

This article will discuss how to use a borrowing power mortgage calculator and then give you one of my ways to save money.

Calculate how much money you can borrow based on your financial circumstances with a borrowing power calculator. First, enter the income after tax of the person or married couple. Add up expenses of all parties involved so that the mortgage calculator tells you everything you need to know. I like adding in the monthly payment safety buffer so that you make sure you don’t get in over your head. You will be much happier with an extra 200 dollars at the end of the month than living check to check. You could even put it into your monthly mortgage payment as a way to save money!

One of my Ways to Save Money

The loan term is actually a big deal. Usually people go straight for 30 years to see the maximum they can afford. This is a bad way to look at it. If you’re planning to only live somewhere for 3 years and you get a 30 year mortgage then your first 6 monthly mortgage payments on an amortization schedule would look something like this:

$200,000 30 yrs 6% interest rate – monthly mortgage payment $1,199.10

You will have saved $8,000.00 in those 3 years which is pretty good right? Well of course it is, but it can be much better! Imagine now that you lowered what you want to spend and looked in the range of $170,000.00.

$170,000.00 20 yrs 6% interest rate – monthly mortgage payment $1,217.93.

Only about $18.00 more per month than the last example but for only 20 yrs this time!

This time you saved $15,000.00! You saved almost double by spending the same amount of money! Also, if you happen to stay a bit longer than you anticipated than that principal is going to go down quick! The cheaper it is, the quicker is sells also, so when it comes time to actually sell it will turnover quicker. What a great way to save money!

I hope you go for the cheaper mortgage loan, you will be very happy after those 3 quick years go by and you have some extra cash coming to you. A borrowing power calculator gives you a lot of information about you mortgage loan. Put the numbers above into a mortgage calculator with an amortization schedule and you’ll see that you’ll save over $109,000 over the course of the entire mortgage loan! Can you believe that? AND you’ll have been done paying after 20 years instead of 30 years and relieved yourself the stress of a mortgage payment each month!

The main point here is that a mortgage is a huge investment and sometimes people put very little work into buying and understanding a mortgage. Do the research before hand and you’ll be very happy that you did. You’ll save a lot of money and be very happy that you did it!

This Borrowing Power article is brought to you by The Free Mortgage Calculator. Learn and understand the mortgage process and how to save money by using a Mortgage Calculator. Figure out how much you can borrow, your debt to income ratio and how to understand an Amortization Schedule.

Article Source: http://EzineArticles.com/?expert=Chris_G_Bell
http://EzineArticles.com/?Calculate-Your-Borrowing-Power-Using-a-Mortgage-Calculator&id=2603988

Mortgage Calculators
By Steve Valentino

A mortgage calculator is a simple form that uses basic details of your mortgage loan to calculate what you expect to be paying for your home loan each month. You can use it to see what loans may cost at different interest rates, thus helping you calculate the right mortgage loan for your home.

The primary factor that the mortgage calculator generally asks you for is the amount of money you have to borrow from the bank, in other words, the loan amount. It also asks the interest rate at which you expect to repay the loan and the time you need to return the loan, called the loan term. If you are unsure of how much you need to borrow from the bank, you can easily calculate the amount. The amount you expect to pay as a down payment at the time of purchase should be subtracted from price of the house. If your down payment is small or negligible, you can just enter the full price of the house in this field on the mortgage calculator form. The most common term for mortgage loans is thirty years, but you can choose other term options to enter this field in the mortgage calculator form. Your interest rate is determined by factors that include the term of the loan, the loan type, and your credit history. You can also enter the current mortgage rate.

Once all of these are entered, you can calculate your monthly cost for the mortgage loan. Of course, these calculations are only made for you to get a preliminary review of monthly costs. The actual interest rates, loan terms, and the monthly payment details are best obtained from your mortgage lender.

Another use of the mortgage calculator is to calculate payments on debt consolidation mortgage loans, wherein you can compare your potential monthly savings against your traditional loan. There are many factors that help determine the right loan for you, and by using the loan comparison calculators, you can get an accurate monthly payment figure. The amortization schedule helps you calculate the right payment plan to reduce your debt gradually through monthly payments of the principal.

Calculators provides detailed information on Calculators, Mortgage Calculators, Loan Calculators, Auto Loan Calculators and more. Calculators is affiliated with File Folders.

Article Source: http://EzineArticles.com/?expert=Steve_Valentino
http://EzineArticles.com/?Mortgage-Calculators&id=190777

How To Figure Out Mortgage Payments Without a Mortgage Calculator
By Edward Lathrop

In today’s world, taking out a mortgage is necessary for anyone who wants to invest in real estate or simply wants to put a roof over his head. Usually, to find out what a mortgage payment will be on a particular property, a potential buyer needs to contact a realtor or bank to get a quote.

By contacting either one, the buyer risks harassment from a realtor who won’t let go of a qualified buyer, or a lender who needs to lend mortgage money to stay in business. Any buyer in his right mind will only go to one of these salespeople when he is ready to go full speed ahead toward a closing.

So, what does a person who is in the early thinking stages of buying a home do? How do you know what the payment will be on a house a seller is asking $250,000 for when the bank is advertising 30-year mortgages at 7%?

By the end of this article you will be making such a calculation in your head. You will be sprouting out the answer to complicated home buying scenarios just as fast as you can find the terms on the mortgage and the price on the house.

$66.53 a Month

First, remember this: $10,000 borrowed for 30 years at 7% will require a monthly payment of $66.53. So, it stands to reason $100,000 for 30 years at 7% requires a monthly payment of $665.30. Also take note you could figure out on a piece of paper with a pencil, $50,000 for 30 years at 7% is $332.65.

Knowing these figures, you automatically know a $250,000 mortgage at 7% for 30 years will require a payment of $665.30 (for $100,000) and another $665.30 (for the next $100,000) and $332.65 (for $50,000). This means the payment will be $1,663.25, or really, really close. A mortgage calculator gives the answer as $1,663.26, but for a wild guess, I’ll take it.

A 6% or an 8% Mortgage

Of course, here you ask, “What if I find a mortgage with a lower interest rate?” Well in that case, remember this, $10,000 borrowed for 30 years at 6% costs the borrower $59.96 a month. This means a $1,000,000 mortgage for 30 years at 6% will be 100 times $59.96 or, a monthly payment of $5,996.00. Now, certainly that was easy. All we had to do was add 2 zeros!

Okay, what about if the interest rate is 8%? Here, a 30-year mortgage for $10,000 is $73.38 each month. So a $300,000 mortgage will come at a cost of 30 times that or, $2,201.40 a month.

How About a 7 1/4% Mortgage?

In reality, most times interest rates will not be exactly 6 or 7, or 8%. Even when this is the case, you still don’t need a mortgage calculator. If you read about a 30-year $260,000 mortgage at 7 1/4%, for instance, and you want to know what the monthly payment will be, here’s what you do. Are you ready? Guess!

That’s right! Just guess! You know 7% will cost you $66.53 per $10,000 a month and 8% will cost $73.38 per $10,000 a month. You also know 7 1/4 is somewhere on the lower side between 7 and 8 so take a guess how much 7 1/4% will cost per $10,000 a month. My guess would be maybe, $68.50?

I’ll go with that. So, since it is a $260,000 mortgage we’re trying to figure the payment for, we will multiply 26 (260,000 / 10,000) X $68.50. The answer is: $1,781.

When I run $260,000 at 7 1/4% for 30 years through a mortgage payment calculator the answer comes out $1,773.66. So, our answer wasn’t precisely right, but it was pretty close.

In a case like this, even if we came out with an answer that is $20-$30 off, who cares? Before the real mortgage payment is determined, the cost of a homeowner’s insurance policy and property taxes will have to be calculated anyway. So, the best anybody can do at this point is guess.

There you have it. Now, you’re a human calculator! As long as you’re only concerned with 30-year mortgages, and today’s going interest rates, which are 6% to 8%, you can figure out mortgage payments in your head, or maybe with just a little help from a pocket calculator. Congratulations!

Ed Lathrop is a successful Real Estate investor. He has developed a Website where you can print out a mortgage payment table showing monthly payments for hundreds of different combinations of interest rates and borrowed amounts. Get your free printout at : House Payment Chart. Also, find out how to get your amortization schedule and use it to save big money at: Amortization Schedules Free. These sites are not owned by any lender, so no one will harass you for visiting!

Article Source: http://EzineArticles.com/?expert=Edward_Lathrop
http://EzineArticles.com/?How-To-Figure-Out-Mortgage-Payments-Without-a-Mortgage-Calculator&id=952915

Biweekly Mortgage Payment Calculator – Lower Your Mortgage Interest
By Jim Eastman

A Biweekly Mortgage Payment Calculator will make you think twice about how you pay your mortgage.

If you own a home and are currently paying off a mortgage, there are a few shocking facts that you should be aware of.

In the first place, by the time you’ve paid your mortgage off you will have paid roughly 3 times the amount of the loan itself. Furthermore, assuming you had a 30 year mortgage it will take a full 23 years to pay only half of your loan! An appalling reality to say the least!

Now that raises the question – is there a way to rectify the matter? Some people look to refinancing to resolve the matter.

But although refinancing might mean a lower interest rate the fact remains that you’ll still have to pay interest that far exceeds the amount of the loan. And in addition you’ll be burdened with closing costs and the inevitable paperwork. But there’s a better alternative.

A biweekly mortgage payment plan will cut your interest paid in terms of not only hundreds or thousands – but TENS of thousands – of dollars!

The actual amount you will save is dependent on your remaining balance, term, and the current interest rate on your loan. But a biweekly mortgage payment calculator will instantly reveal the figures as well as a amortization table that contrasts your existing method of payment to a biweekly plan.

In case you’ve never heard of “biweekly mortgage payments”, a bi weekly payment plan doesn’t require changing lenders nor does it change how much you pay per month. To stat it in simple terms, it’s just an alternative WAY to make payments on your mortgage loan.

Instead of paying once a month, you cut the payment amount in half and pay every two weeks.

Just by using a biweekly mortgage payment calculator you’ll come to realize the enormous advantage of this method, concerning the amount of interest paid and the number of years it will take to repay your loan.

Another import issue is convenience!

Instead of having to watch your budget and come up with one big payment on a monthly basis, you will pay every two weeks but make only 1/2 a payment. And because most people get a paycheck every 1 – 2 weeks, the payment schedule can be set up to coincide with payday, making it easier to budget your finances.

If you want to know just how much YOU can save by going to a biweekly payment plan, you can find out in just a few seconds.

Locate a Biweekly Mortgage Payment Calculator and get your answer instantly!

Jim Eastman is writer on financial related topics including consumer advocacy issues. To find out how YOU can save Tens of Thousands of dollars in mortgage interest – without refinancing or changing lenders – visit http://www.build-home-equity.com/biweekly-mortgage-payment-calculator.html to look at a Biweekly Mortgage Payment Calculator.

Article Source: http://EzineArticles.com/?expert=Jim_Eastman
http://EzineArticles.com/?Biweekly-Mortgage-Payment-Calculator—Lower-Your-Mortgage-Interest&id=581657

Mortgage Calculators
By Elizabeth Morgan

Mortgage calculators are handheld devices much like ordinary mathematical calculators. They are specially programmed to compute values relating to mortgages, such as interest rates, amortizations and monthly payments.

Mortgage calculators are very useful tools to check whether the user is qualified to obtain a loan. They work for conventional loans as well as loans insured by the Federal Housing Administration (FHA) or the Veterans Administration (VA). Mortgage calculators can compute the total payment including principal, interest, taxes and insurance, called as the PITI payment. Payments can be calculated irrespective of the time period how it is paid – quarterly, monthly or biweekly.

Besides these, mortgage calculators can calculate the amortization schedules on a mortgage. They can calculate balance on the mortgage taken. There are some calculators that can calculate the future value of a mortgage. Not only that, some mortgage calculators have rent-versus-buy features, which can calculate display which of these two options would be better in the long run.

The buttons on a mortgage calculator include the numeric keys from 0 to 9 and the usual keys on a mathematical calculator, such as addition, subtraction, multiplication, division, percentage, clear (CE), equals to, etc. In addition to these keys, there are special mortgage-related keys such as total payment (TP), solve, recall and principal value (PV). There is also a mode or shift button, which allows the user to switch from finance, currency or tax modes. Most mortgage calculators also do currency conversions and tax calculations.

Mortgage calculators are lightweight and can generally be carried in the hip pocket (though this is not advisable). Better versions have plastic covers that can completely cover the calculator when not in use. They have integrated circuitry within their bodies and are operable with one or two 1.5-volt pencil cells. Since mortgage calculators are used for quick calculations, their buttons are usually larger in size than normal calculators. Depending on the features present on a mortgage calculator, they may be priced between $10 and $60.

Mortgage Calculators provides detailed information on Mortgage Calculators, Mortgage Payment Calculators, Mortgage Rate Calculators, Free Mortgage Calculators and more. Mortgage Calculators is affiliated with Mortgage Information Services.

Article Source: http://EzineArticles.com/?expert=Elizabeth_Morgan
http://EzineArticles.com/?Mortgage-Calculators&id=228066

Use a Mortgage Loan Calculator When Comparing a Modification Loan Or Refinance Loan Mortgage Rate
By Virgil Stanphill

A mortgage loan calculator gives you a tremendous advantage when negotiating a new loan with your lender. If you want the best mortgage rates when you refinance, nothing beats knowing how to compare offers you may get from different lenders or brokers. This article is loaded with tips on how to use a mortgage calculator to make sure you come out ahead before refinancing or modifying your loan.

Here are 3 common scenarios where using a mortgage calculator can help you decide what to do …

1. Should I Refinance?

First, determine your main goal. For example: Are you more concerned with short term savings – (reducing your monthly payment now), or, do you want to save more money in the long run? .

For example. If you had a 30 year loan at 5% interest, and you’d been making monthly payments on it for the last 5 years (60 months), you’d reduce your monthly payment if you refinanced for a new 30 year period, say at 4.5%.

But you could still end up paying more over the long run. The problem is you have no way of knowing that until all the related expenses are factored in. And this is where a mortgage loan calculator can help you. The calculator has places for you to input the various closing costs, fees, taxes, etc. And only after considering all the related expenses will you know whether or not you’re coming out ahead.

2. How Much Income Will I Need to Qualify?

Nothing feels worse than finding the home of your dreams and then being turned down when you try to arrange financing. Once again, this is a case where using a mortgage calculator can really help. Wouldn’t you rather know if you can qualify for the loan before you apply?

Here’s what you’ll need to know …

First: the cost of the home; the expected interest rate; the term of the mortgage (i.e., how many years?); and your down payment. This will show you the total monthly payment on the principal and interest. But you’re not finished yet!

Next, add in the annual property taxes and annual insurance costs. Using all the above criteria the calculator will tell you what your gross monthly income needs to be in order to qualify for a loan on your dream home.

3. Should I Rent or Buy?

Remember the days when we were told that buying a home is ALWAYS a good investment? Emotionally that’s probably true. But it’s not always the case mathematically. Sometimes you’re better off renting, especially in uncertain times.

Here’s how to know …

First, understand you’re going to be using your “best guess” estimates. But with a little research you should be able to come pretty close (most of the research simply involves presenting a couple of questions to a knowledgeable realtor or property manager). Here are the questions on the home ownership side of the equation:

What annual maintenance costs are typical for a home like this? What’s the annual appreciation % I could expect on this property? What % selling costs should I expect? What are the annual taxes and insurance? What is the PMI (private mortgage insurance).

Your rental questions are much simpler. First, – how many years do you plan on being in the home before selling? Second, how much is the monthly rental payment? And third, what is the annual rate increase % expected to rent this home? Now you’re ready.

Using all the factors above a mortgage calculator will tell you — 1. The total of the payments you’d make buying vs renting, 2. the total you’d save on rent, and, 3. the total home purchase benefits. This will help you make an objective decision based solely upon the financial implications.

Other Uses

Other ways you can use a mortgage calculator include finding answers to the following: What would the monthly payment be? What is the mortgage principal? What if I pay extra each month? Should I pay points to lower my interest rate? Which loan is better between two or more offers? What difference would a bi-weekly mortgage vs. a standard mortgage make?

As you may imagine we haven’t even “scratched the surface” of the many benefits of using a mortgage calculator. They can pay off handsomely.

Use the FREE ‘20 calculators in 1′ mortgage calculator to compare loan offers from different lenders. Determine the affordability of any loan before you commit. Decide based on calculations. You can use it here: http://www.betterlivingmarketing.com

Don’t pay $39 (or more) for a Do-It-Yourself Loan Modification Kit until you’ve first seen these Bank-Ready Forms. You’ll find easy “fill in the blank” Word documents – complete with instructions – and they’re probably all you really need. Get info here: http://www.betterlivingmarketing.com

Article Source: http://EzineArticles.com/?expert=Virgil_Stanphill
http://EzineArticles.com/?Use-a-Mortgage-Loan-Calculator-When-Comparing-a-Modification-Loan-Or-Refinance-Loan-Mortgage-Rate&id=2276444

Mortgage Loan Rate Calculators
By Jason Gluckman

Mortgage interest rates vary and are influenced by credit rating of the borrowers and value of the property among other factors. Mortgage rates are charged to the borrowers on the amount borrowed. Borrowers are either charged according to a fixed or adjustable rate of interest. For home buyers the best way to compare these rates is to approach a local broker or directly obtain a quote from the lender. However, for customers who would like to do their own research, there are many Web sites that can help them. While purchasing a mortgage, customers have to consider a lot of factors to decide on the right combination. It might be overwhelming for many customers to choose first the right mortgage, then between fixed rate and adjustable rate and also if they really need a mortgage.

Mortgage calculators help the customers put everything in black and white. It is possible to find out the amount of the mortgage, rates offered and monthly installments by simply putting in the required information. They can even be used to compare between options such as fifteen year or twenty year term. These calculators allow the borrowers to think about consolidation of their debts and in turn opt for a mortgage. Consolidation of debts means combining all existing debts as one loan. This may help the borrower gain a more favorable interest rate. Borrowers need to enter the number of months they need for repayment. The calculator then displays the monthly payment, savings on interest, any tax-related savings and total cost savings.

The mortgage loan rate calculators guide the borrowers to decide from among most suitable financing options such as mortgage or refinance. There are quite a few factors that affect the mortgage rate calculations. These calculators aim at providing the customers with an idea regarding their mortgage.

Mortgage Loan Rate provides detailed information on Mortgage Loan Rates, Adjustable Rate Mortgage Loans, Second Mortgage Loan Rates, Best Mortgage Loan Rates and more. Mortgage Loan Rate is affiliated with Free Mortgage Loan Loads.

Article Source: http://EzineArticles.com/?expert=Jason_Gluckman
http://EzineArticles.com/?Mortgage-Loan-Rate-Calculators&id=408616

5 Tips For Utilizing a Mortgage Calculator to Help Compare Cheap Home Loans
By Richard S Jefferies

A mortgage calculator is an essential tool when you are considering purchasing a new home. Whether this is your first home or your fifth home, a home loan calculator, as it is also referred to, can be an invaluable asset in making wise, secure business decisions about the home that is right for you and your budget.

Purchasing a home and committing to a new debt load can sometimes be a little anxiety-ridden. However, keep in mind that the mortgage calculator can take a lot of that anxiety out of the equation by giving you the peace of mind necessary to know that you are making a good decision for your future. By using a home loan calculator, you can be sure that you are buying a home that will match your family’s budget for years to come.

Listed below are 5 tips that will assist anyone in utilizing the calculator in making a wise home loan decision:

* 1. Use the calculator to determine the difference that various interest rates can make in your total monthly payment. In other words, make certain that when you negotiate the interest rate on your home loan you have already utilized your mortgage calculator to know the difference in the total note payment at a 5% interest rate versus a 7% interest rate for example. This gives you the ability to negotiate with the broker or lending institution with the proper information at your fingertips, and provide them with parameters that will work for you and your budget.

* 2. Make sure that you can afford the purchase price you plan to offer a seller on a home. How do you do that? Again, by using your calculator, and entering various purchase prices into the calculator at realistic interest rates and term lengths, you can quickly determine what price home you can afford to purchase by comparing the calculated monthly payments with what you have decided that you can afford. At this point, no matter how much you might love a higher priced home, you have to be realistic and stay within your price range.

* 3. Next, determine whether you can afford a 15 year mortgage or whether you should consider a longer term such as 20 or 30 years. The longer the term of the mortgage the lower the payments, but the more interest you will ultimately pay over the lifetime of the loan. Keep in mind, however, that if your financial situation changes, you can always pay “extra” toward the principal of the loan each month and reduce the number of years required to pay the loan off in full.

* 4. Use the mortgage calculator to determine what the “real” cost of the home will be over the lifetime of the loan. With the home loan calculator, an amortization schedule is provided. This schedule gives you complete information on how much you will pay in principal and interest each year of the loan until the time that the loan is paid in full. This information tells you exactly what the total cost of the home will be at the time that it will be paid off in full. This again, helps you to determine what areas of the loan you need to negotiate to feel comfortable with the purchasing decision you are about to make.

* 5. After determining a realistic purchase price, interest rate, and term for the loan, you now have a basic monthly payment. However, don’t forget, your home loan calculator does not figure real estate taxes and insurance. Consequently, it is imperative that you take the monthly payment given to you by the calculator and add a monthly amount for the real estate taxes and the insurance. The current owner or the realtor can provide you with the amount being paid by the existing owner for both of these. You can also contact insurance agents to compare prices offered for home insurance on the property.

You might also want to remember that, although the above items cover the monthly “hard” costs for the home, you will need to be certain that you have taken into consideration the fact that the home will need repairs and maintenance. Although it is impossible to predict exactly what these will cost you during your years of home ownership, you are advised to make an estimate. Many factors must be considered, such as the age of the property, how well it has been maintained, and whether you can do a great deal of the work yourself or will need to hire contractors.

In summary, the home loan calculator is a tool you should use not only when you purchase a home but also anytime you are considering refinancing your home or establishing a line of equity on your home.

You will find a number of websites that provide free mortgage calculators for you to use. You should never go property-hunting without doing your research first. Make certain you have done your homework prior to making an offer on any home by using the mortgage calculator to look at all the possible scenarios. Know exactly what you can afford to offer and do not go a penny more.

Identifing and finding the right home loan is not always a easy task. Thats why dealing through a good home loans broker, Finance Ezi can help ensuring you get the correct morgage loan pacakge at the right loan interest rates. Use their free online mortgage calculator to compare and calculate different home loan packages and talk to their experienced mortgage broker department to ensure you are well informed on what is available for home loans Australia wide.

Article Source: http://EzineArticles.com/?expert=Richard_S_Jefferies
http://EzineArticles.com/?5-Tips-For-Utilizing-a-Mortgage-Calculator-to-Help-Compare-Cheap-Home-Loans&id=2640584

Understanding Monthly Payment Mortgage Calculators
By Dennis Estrada

To calculate the monthly payment of your mortgage is the most basic calculation in terms of mortgage. You can apply the same calculation for loans. That is why mortgage monthly payment calculator is also called loan payment calculator. To be safe, make sure you stay below forty percent of your net income. For example, 40% of $4,000 comes to $1,440 mortgage payment.

Here is the mortgage monthly payment formula:

payment = [P(1 + r)n r]/[(1 + r)n - 1]

Here are the amounts that you need:
- P means principal amount of loan.
- r means interest rate. To get the rate divide the interest rate by twelve months, because there are twelve months in year.
- n means the number of payments. Basically, multiply number of years by twelve months.

Suppose you want to know the monthly payment for a 30 year mortgage for $100,000 at 7% interest rate. Rate equals .00583 which is interest rate divide by twelve months, while number of payments equals 360 (30 years X 12 months). You pay $665 mortgage monthly payment per month.

Here is the actual calculation:

Payment equals [$100,000(1 + .00583)360 x 0.00583] / [(1 + 0 .00583)360 - 1]. Your monthly mortgage payment comes to $665.30. By the way, 360 is an exponent.

Dennis Estrada is a webmaster of Able Mortgage Calculators which calculate the mortgage payments, and compare different interest rates.

Article Source: http://EzineArticles.com/?expert=Dennis_Estrada
http://EzineArticles.com/?Understanding-Monthly-Payment-Mortgage-Calculators&id=157310