How to Calculate Mortgage Payments Using a Mortgage Calculator

Learn how to calculate mortgage payments using a mortgage calculator. A mortgage calculator is a great tool in developing your knowledge of the factors that go into determining you monthly mortgage payments. Learn now and save later!

Instructions

1. Find a mortgage calculator online to calculate monthly mortgage payments.

   Use a search engine to find a free mortgage calculator online. One popular mortgage calculator is at MoneyChimp.com. (See line in additional resource section below) This calculator is great because it has all the necessary variables to compute your monthly payment.

2. Enter loan amount, mortgage rate, and years to pay.

   Your loan amount is the principle amount you are borrowing for the purchase of your home. The mortgage rate is the rate at which you are borrowing the money on an annualized basis, usually between 5-10%.Keep in mind this is a simple mortgage calculator, meaning all interest rates are considered fixed. The years to pay back is the repayment period for the loan, usually either 15 or 30 years.

3. Enter calculate to view your monthly payment.

   Re-enter the information from step two to view how changing certain variables affects your monthly bottom line.

Resources

• Mortgage Calculator