Using our mortgage calculator allows you to understand what your principle and interest payment will look like. Our loan specialists are ready to assist you when you are ready. If you are unsure what type of rate you might get for your new home loan, feel free to contact us. We are here to help, after asking a few questions our loan specialists can give you a pretty good idea of where the rates would be for you. We are brokers and have multiple lenders to find the perfect rate for your circumstance.

The monthly payment estimates from this mortgage calculator are broken down into principle and interest. Keep in mind that your loan may also require applicable tax and insurance along with HOA fees depending on where you live.

Enter a "0" (zero) for one unknown value above.

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The math behind mortgage payments

If you want to learn how to figure out how much your mortgage payment will be, and are mathematically inclined, here is a formula to let you calculate your mortgage payment.

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

  • M = the total monthly mortgage payment.
  • P = the principal loan amount.
  • r = your monthly interest rate. Lenders will provide an annual rate so you will need to divide that rate by 12 to get the monthly rate. For example, if your APR is 5%, your monthly rate would be 0.004167 (0.05/12=0.004167)
  • n = number of payment to satisfy the loan. Multiple the number of years for your mortgage by 12 to get the number of monthly payments for your loan. For example, a 30-year fixed mortgage would have 360 payments. (30×12=360)

The formula above can help you crunch numbers to see how much house you can afford. Using Homewise’s tool to calculate your mortgage payments can make it easier to decide if you’re putting enough money down or if you need to adjust your loan term. It is typically a good idea to rate shop with multiple lenders, however since Homewise is a brokerage that has several lenders, we will query all of our lenders to ensure that you are afforded the best possible interest rate and the lowest possible monthly mortgage payment.

Use a mortgage calculator to help

Buying a home is often times life’s largest transaction, and how you finance it should not be a snap decision. You should set a budget up front to ensure that your new mortgage payment will not push your debt-to-income (DTI) ratio in a range that you are not comfortable. This budget should be set long before you start to look at houses. Once you know how much you are comfortable with spending, you can work with Homewise’s mortgage calculator to adjust sales price, down payment, and loan term in order to get your monthly mortgage payment where you want it to be. Contact one of our loan specialists, or fill out our online application, to find out what the current interest rates are.

How to decide how much house you can afford

If you are unsure about how much of your income should go towards housine, you should follow the 28/36 percent rule. Most financial experts agree that you should spend no more than 28% of your gross income on housing, and no more than 36% of your gross income on total debt (mortgage payments, credit cards, student loans, medical bills, car payments, etc.)

What’s Next

A mortgage calculator is only meant as a self help tool to help you estimate your monthly mortgage payment and understand what it includes. The next step after playing with the numbers is to get you preapproved for a mortgage loan.

Applying for a mortgage with Homewise Financial is a simple online process, that will give you more definitive numbers and a better idea of how much house you can afford. You’ll also have a clearer picture of how much money you will need to have at the closing table.

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