You can use this mortgage calculator to see how much you can expect to pay on your mortgage. This calculator supports both Interest-Only and Amortized mortgages. Interest-Only payments are most common with private mortgage lenders, and this means that the mortgage principal will not decrease. Amortized mortgages are common with Banks, Trust Companies, and Credit Unions, and this means that each payment will pay off interest as well as principal. At the end of the amortization period, the loan will be fully paid off.
You can also compare total interest vs. principal paid with different mortgage options. Generally, a shorter amortization period will result in higher payments, but less total interest paid. An amortization table will be generated after the calculation to show total yearly payments to interest, principal, and the mortgage balance. Rapid or accelerated mortgage payments mean that you opt to increase your payments to pay off your mortgage more quickly. Also, keep in mind that most lenders will insist upon getting mortgage insurance with less than a 20% down-payment. This mortgage insurance fee is not included in the calculator by default.
Input Field Definitions
- Mortgage Amount: The total amount of money borrowed from the lender.
- Interest Rate: The annual cost paid to the lender as compensation for the loan.
- Amortization Period: The number of years it will take to fully paid off the debt.
- Payment Frequency: The number of payments made each month.