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Home Loan Mortgage Calculator

Capital Bank’s home loan calculator allows you to estimate your mortgage payments and easily determine how much house you can afford. Get an idea of what your monthly payments will look like by calculating down payments, loan terms, and interest rates.

Remember, mortgage calculators are just one part of the home loan equation. Learn more about what goes into calculating a mortgage loan.

How to use the Home Mortgage Calculator

Simply input your desired down payment amount, expected interest rate, and loan terms into our mortgage calculator and make any adjustments necessary to see your monthly payment. Don’t worry if you do not have exact numbers. Mortgage calculators best used as a guideline to help you get an idea of how much you can expect your monthly payments to be. There are many other factors that go into calculating a mortgage.

Equation for mortgage payments

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

• M – Your total monthly payment
• P – This represents the principal amount on your mortgage.
• r – This is your monthly interest rate. Most mortgage lenders offer an annual rate. Divide this rate by 12 to get your monthly interest rate.
• n – This represents the number of payments you’ll make over the duration of your loan. Your loan term will be given in years (i.e. a 15 or 30 year loan), however, you’ll be making monthly payments. Multiply your loan term by 12 to find out the number of payments you will make. For example, a 30 year loan term, divided by 12 payments per year, equals 360 total payments.

A Complete Overview of VA Loans Guidelines

Glossary of terms

Home Price

The sum for which a home is bought or sold. This does not include the extra payments made to third parties or the other costs of buying and owning a property.

Down Payment

A down payment covers a certain percentage of the purchase price of a house that you pay upfront. If you buy a home, a down payment can range from 5% to 25% of the home’s total value, and a bank or other lender covers the rest of the cost. A higher down payment decreases the amount of interest paid when you pay the regular installments on your loan.

Mortgage Rate

The amount of interest paid on a mortgage. Mortgage interest rates can stay fixed or can fluctuate. If the purchaser has a high credit score, the lender lowers the rate because they risk less by loaning the money. The risk and rate correlate: the higher the risk of loaning the money, the higher the mortgage interest rate.

Loan Term

Loan term refers to the amount of time the borrower follows the mortgage agreement, including the interest rate, regular payments, and other specific conditions upon which the mortgage was granted.

Principal and Interest

Principal and interest make up the bulk of your mortgage payment. Principal is the part of your mortgage that gets applied to the value of your home, and interest is a fee paid to the bank for financing your loan.

Homeowners Insurance

Homeowners insurance is commonly rolled into escrow. Although not required by law, acquiring homeowners insurance is common practice in the home buying process and is highly recommended to cover any unforeseen damage or loss.

Property Taxes

Charged on immovable property, including land and structures that are permanently attached to the ground, such as a house or building. When you buy a home, you must pay real estate taxes, also known as property taxes, directly to your local tax assessor or indirectly as part of your monthly mortgage payment.

PMI

Stands for private mortgage insurance, which is a type of mortgage insurance you could be required to pay for if you have a conventional loan. PMI is typically required when you obtain a conventional mortgage and make a down payment of less than 20 percent of a home’s purchase price.

HOA Fees

Required by some condominiums and neighborhoods as part of a homeowners’ association (HOA). Dues are typically paid directly to the homeowners’ association (HOA) and are not included in the payment you make to your mortgage servicer.

For most buyers, obtaining a mortgage and buying a home is the largest financial undertaking they will complete in their lifetime. Homes appreciate in value and are typically considered a sound investment for most applicants.

But committing to repay a large amount of money can be confusing. Let’s look at the most commonly asked questions that pop up during the process.

A home mortgage is a loan administered by a bank or other financial institution for the purchase of a home or residential property.

Conclusion

In conclusion, the primary factors for mortgage approval are credit score, income, existing debt, and down payment. As a savvy consumer, you can run scenarios with various inputs to find the right mortgage lending solution for you.

Once you procure a mortgage, be sure to pay your payments on time and include extra principal payments as available. These actions will ensure you are able to refinance should mortgage rates become more desirable.

Home-ownership is a journey and a dream for most Americans. Use the research we’ve compiled to make the most of your adventure toward owning a home.