A **mortgage calculator** is free calculator to measure your mortgage payment every month. This calculator will measure about taxes, interest, insurance, and also *Private Mortgage Insurance*. You can understand your monthly expense changes after update your home price, interest rate, and so on. This calculator will make you easier to calculate your fixed loan term.

You can use this calculator to estimates how much you can afford for the monthly payment before you invest or take any insurance. You can combine this calculator with another calculator called Home Affordability Calculator, especially to credit a home.

You can this **Mortgage Calculator** *free*, so that you can calculate and match your salary with your future loan.

Set Private Mortgage Insurance (PMI) = 0%if you want to calculate estimate mortgage payment without PMI

## What Mortgage Calculator Do?

You can tell that a Mortgage calculator will give you a lot of benefits toward a monthly loan in the future. It can tell you until 30 years fixed. You don’t have to calculate the annual payment anymore.

You can actually know about your principal, interest, property taxes, homeowner, insurance, and also Homeowner association fees.

**1. Give Information About Budget Planning**

Everyone wants to possess a home someday, but the price can rise significantly in a year. That is a reason why people buy it in debt. They have to pay the home credit every month and they have to know about the payment before take a home credit. They have to match their salary so that they can pay off debt someday.

A mortgage calculator will help you to understand how much you afford the home loan with a specific home price. It will give you information about the next 30 years loan that you should pay off. It can give you information about how much you can afford for the property also.

Also Read: First Time Home Buyer’s Guide

When you realize that you almost buy a home that you cannot afford, you can change your cheaper home and property.

**2. Help Us to Save Money**

Saving money is really important for everyone. It cannot be easily calculated when you possess some interest, asset, and insurance. A mortgage calculator will help you to measure the whole important variables that you should pay monthly.

This calculator will include interest rates, amortization, and also down payment to give you the best options value. You can choose the right mortgage by using it.

**3. You Don’t Have to Calculate Manually**

You can find a bunch of mortgage calculator that you can access it *freely*. Every calculator always has own way to calculate mortgage base on the specific bank. Every bank has its own regulation mortgage calculation so that the result will be different for one bank to another bank.

You can decide the repayment time and the maximum interest you can get. Anyway, a mortgage calculator will make you easy to choose the debt term.

**4. Help You to Understand about Mortgage**

You don’t have to come to the banker and broker to consult about the mortgage terms. You can know the exact amount of mortgage by using this calculator.

You can estimate your capacity payment in 30 years or 15 years, and also compare it with another variable so that you can choose.

**How To Calculate a Mortgage Payment?**

You have to know about the **Mortgage payment equation**. You can know the whole function of variables and their effect on the calculation.

**M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]**

Information about each variable can be seen below.

- M = mortgage payment per every month
- P = the principal amount that you borrowed
- i = your interest rate per month.

You have to divide this interest by 12 due to an annual payment. If you have an interest rate as much as 4%, you can calculate I variable like this 0,04/ 12 = 0,0033.

- n = loan life payment number.

You can choose 15 years or 30 years as your fixed rate mortgage. Then, you can calculate n like the example of n = 30 years x 12 months per year which the results are 360 payments.

**Terms That Must Be Understood in the Mortgage Calculator**

There are several variables of mortgage calculators such as principal and interest, private mortgage insurance, property tax, homeowners insurance, HOA, loan term, down payment, and interest rate.

You should understand the whole terms so that you can understand about the whole regulations about loan life.

**Principal and interest**

The most important thing that you should know is about the Principal and interest. These two things have different meanings. A principal is an amount that you have to pay off due to borrowed from the bank.

Interest is charged that you should give to lenders after they lending you their money. These two things calculate in fix amount, except you possess a balloon loan.

**Private Mortgage Insurance (PMI)**

You should know about private mortgage insurance also before you borrows it. You have to pay this insurance to a commercial company or lender. This PMI has an amount between 0.5 util 1%.

**Property Tax**

This kind of tax will increase every year and calculated by the government in your region. Every nation or regions has own regulations about property tax. Property tax is a real estate tax or building tax.

This tax will calculate assets about property and land. This kind of tax will be used by government home infrastructure such as water and sewer.

**Homeowners insurance**

If you credit home or already have a home, you have to register it homeowners’ insurance. This insurance will cover financially when disaster or accident happen and involve you home.

You should know about the exception covering budget from insurance and also the budget that you can afford for the insurance.

**HOA/ other**

HOA is an abbreviation of homeowners association fee. This HOA has to be paid monthly by a homeowner for the specific properties. The association will use this fee to maintain and improve facilities corresponding to properties.

**Loan term**

You should understand too about loan term in which how long of a time that borrower pays towards a home loan. If the borrower pays diligently more than the monthly payment, the borrower can use a short loan term. This term is depending on the payment habits of the borrower.

**Down Payment**

Another term that you should know is about Down Payment. This term is regulating the total amount of money to buy the home that you pay to the home’s seller.

This Down payment is expressing in percentages with a score minimum of 20%. You can understand this kind of payment by using the Down Payment Calculator.

**Interest Rate**

The last term you should pay attention to mortgage calculator usage is Interest Rate. This variable gives you information about how much money you should lending from lenders.

This cost supposes to be paid annually. These terms can express your total loan balance.

Ready to take a **home mortgage**?