Buying a new home is exciting, but it can also be confusing for those who are new to home loans and mortgage financing. If you are considering buying a new home, then you are probably wondering how much your monthly mortgage payment would be. Calculating mortgage payments makes it easy to see what your payment will look like based on your projected down payment amount and interest rate (this is based on the current average - your actual mortgage rate is based on individual factors, such as credit score and down payment amount.)
How is a Mortgage Calculated?
To calculate a mortgage, home loan providers look at the total cost of the home, the amount of the down payment, the loan type (i.e. 30-year fixed), and the interest rate. Property taxes, insurance, and HOA dues (if applicable) are also included in this calculation.
There are several different types of loans, and each one will make a difference in how much your monthly payment will be. Our mortgage calculator will help you compare and estimate the costs of each type of mortgage, including a 30 year fixed-rate, 15-year fixed-rate, and 5/1 ARM.
Other Mortgage and Home Loan Considerations:
- A higher down payment on a home can substantially lower your monthly payments and result in a lower interest rate on the loan.
- Your monthly mortgage amount goes toward several different payments: the Principle and Interest (P&I), Property Taxes, Private Mortgage Insurance (PMI), and homeowners insurance.
- In most cases, a 30-year fixed mortgage will have the lowest payment amount but a higher rate than a 15-year fixed, which lets you pay off the home faster with less interest.
Ready to see how much your mortgage payment would be?
Calculate your potential loan amount and monthly payment with the TDECU Mortgage Payment calculator.
Our financial calculators are provided as a free service to our members. The information supplied by these calculators is from various sources based on calculations we believe to be reliable (but are not guaranteed, explicit or implied) regarding their accuracy or applicability to your specific circumstances. All examples are hypothetical and are for illustrative purposes, and are not intended to provide investment advice. TDECU does not accept any liability for loss or damage whatsoever, which may be attributable to the reliance on and use of the calculators. Use of any calculator constitutes acceptance of the terms of this agreement. TDECU recommends you to find a qualified professional for advice with regard to your personal finance issues.