Calculator
 | ||||
 | ||||
You can use the calculator on this page to give you an idea of what your monthly mortgage payment will be based on the scenario you input. The calculator has two options: mortgage or loan. The mortgage option will give you your total monthly mortgage payment, which is the sum of principle, interest, taxes, and insurance (PITI). Only use the mortgage tab on the calculator if you know the property taxes, home owner’s insurance, and mortgage insurance percentage. Otherwise, just do a quick calculation of principle and interest in the loan tab part of the calculator.
Principal is the actual amount of your loan. If you borrowed $250,000, the principal is $250,000. Every time you make a monthly payment you’re paying a part of the principal and reducing the amount you owe on the home and increasing the part that you own (your equity.)
Interest is the amount that the lender charges you for borrowing the money (a percentage of the principal). Interest can change your monthly payments when interest rates change if you have an adjustable rate mortgage.