How to Estimate Home Loans
The monthly loan amount is a key factor in determining which home you plan to buy. If you want to quickly estimate your home mortgage payment, you can calculate your home loan payment using a rate factor sheet. The rate factor sheet calculates the home loan factor based on the loan term and the interest rate you pay. If you have an adjustable-rate loan, you have to recalculate the monthly payment every time your interest rate changes.
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Instructions
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Look up the rate factor for your mortgage based on the term and the interest rate you pay. For example, if you pay 5.2 percent interest and have a 30-year term, the rate factor equals 5.49111.
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Multiply the rate factor by the amount you want to borrow. For example, if you plan to borrow $285,000, multiply $285,000 by 5.49111 to get $1,564,966.35.
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Divide the result by 1,000 to find your home's monthly payment. In this example, divide $1,564,966.35 by 1,000 to get a monthly payment of $1,564.97.
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