 ## Mortgage Amortization Calculator

This calculator is to find the monthly payment of a home mortgage loan. It will automatically factor in PMI for loans where less than 20% is used for a down payment. It does not factor in variable costs such as the title fee or hazard insurance. It is for demonstration only and does not provide final numbers.

# Your total monthly payment is [Detail]

 Home Sale Price: (dollars) Down Payment in Percentage: % Interest Rate: % Mortgage Term: years Assessed Home Value: (dollars) The assessed value is used to compute property taxes. On average, properties are assessed at about 85% of their selling price. If you know the actual assessed value for this property, enter it here. If not, leave zero and we'll use 85% of the sale price. Property Tax Rate: (dollars per \$1000) Property tax rates vary between states and towns. The US average is about \$13.80 for every \$1000 of the assessed home value. Condo/Monthly Fee(s): (dollars) Explain Calculations: Show the calculations and amortization
##### Mortgage Payment Information
 Down Payment: Amount Financed Monthly Payment If you put less than 20% as a down payment, you'll pay Private Mortgage Insurance. PMI tends to be about \$55/month for every \$100,000 financed until you have paid off 20% of your loan. This adds to your monthly payment. Your property tax rate is for every \$1,000 of your property's assessed value, which is . This would mean that your yearly property taxes will be around , and will add to your monthly payment.

 Mortgage (Principal & Interest) PMI Property Tax Condo Fee Total Monthly Payment

## Calculations

To figure out the monthly payment, we need to know (1) how much you're financing; (2) your monthly interest rate; and (3) how many months you're financing for.

### 1. Financing Amount

First, we need to figure how much you're financing.

We can do this based on the sale price of the home ( \$ ) and the percent that you put down ( % ).

Start by calculating the down payment. Divide the percentage down by 100, then multiply by the sale price of the home.

(% / 100 ) x \$ = \$, your down payment

Now we can calculate how much you're financing—how much you need to borrow. That's just the sale price minus your down payment.

\$ - \$ = \$, your financing price

### 2. Monthly Interest Rate

That % interest rate percentage you secured is an annual percent.

We'll need to convert that from a percentage to a decimal rate, and from an annual representation to a monthly one.

First, let's convert it to a decimal, by dividing the percent by 100.

% / 100 = , the annual interest rate

Now convert the annual rate to a monthly rate by dividing by 12 (for 12 months in a year).

/ 12 = , your monthly interest rate

### 3. Month Term

That's just the number of months you'll be paying off your loan.

You have a year mortgage x 12 months = months, your month term.

### 4. Your Monthly Mortgage Payment

Using the three numbers above, we can now calculate your monthly payment.

(financing price) x (monthly interest rate / (1 - ((1+monthly interest rate) -(monthly term) )))

x ( / (1 - ((1 + ) -( ) ))) = \$, your monthly payment*

*Principal & Interest only. See total monthly payment for a your mortgage plus taxes, insurance, and fees. See amortization for a breakdown of how each monthly payment is split between the bank's interest and paying off the loan principal.