Online mortgage payment calculators require the mortgage amount, term, annual interest rate and start date, according to Bankrate. Mortgage payment calculators help home buyers estimate their monthly payments and determine the overall amount of interest they need to pay throughout the mortgage term.
The mortgage amount is the difference between the home buyer’s down payment and the property’s price, explains Bankrate. It is also the outstanding balance on the mortgage of individuals who plan to refinance. Home buyers should also enter the month, day and year of the beginning of their mortgage payments.
The duration of the mortgage is called the mortgage term, which is typically calculated in years, states Bankrate. People who want to buy a new house may select a mortgage loan that spans 30 years, whereas those who are refinancing may choose a 15-year loan.
Online mortgage calculators may provide mortgage rate tables for different areas, notes Bankrate. Individuals should check the rate tables to estimate the interest rate of their mortgage. They can also determine how to reduce the term and earn savings by entering the amount they want to add as extra payments toward the loan’s principal. They can also enter a one-time payment if desired. The calculator then displays an amortization schedule that allows home buyers to see the payoff date and how much interest they will pay on the loan.