User Manual (Steps with Current Interest Rates)
Our Mortgage Calculator considers various factors to provide you with accurate monthly payment estimates. Here’s a step-by-step guide on how to use the tool:
Step 1: Enter Home Price (Property Price)
Start by entering the total price of the home you’re considering. For example, if you’re looking at a home priced at $300,000, input “300000” into the “Home Price” field.
Step 2: Input Down Payment Percentage(%)
Enter the percentage of the home’s price that you plan to pay as a down payment. For instance, if you plan to put down 20%, input “20” into the “Down Payment” field.
Step 3: Define Loan Term (Select your Plan)
Specify the number of years you intend to take to repay the loan. If you opt for a 30-year loan, input “30” into the “Loan Term” field.
Step 4: Add Annual Interest Rate (Make sure Standard Interest Rates)
(30 Years: 7.03% 15 Years: 6.38% 10 Years: 6.57%) on June 2023)
Enter the annual interest rate on your mortgage. If the interest rate is 4.5%, input “4.5” into the “Annual Interest Rate” field.
Step 5: Choose Start Date
Select the date when your mortgage payments will begin by using the “Start Date” field.
Step 6 (Optional): Include Extra Taxes (Such as Property Taxes,Home Insurance,PMI Insurance)
If you anticipate additional monthly expenses, such as property taxes or homeowners association fees, you can include them in the “Extra Taxes” field.
Step 7: Click Calculate
Once you’ve entered all the necessary information, click the “Calculate” button. The tool will process the data and provide you with an estimated monthly mortgage payment.
Formulas used in calculate Mortgage Calculator
Example Scenario
An example:
- Home Price: $300,000
- Down Payment Percentage: 20%
- Loan Term: 30 years
- Annual Interest Rate: 4.5%
- Start Date: January 1, 2023
- Extra Taxes: $100 per month
By inputting these values into the Mortgage Calculator, you would find that the estimated monthly payment is approximately $1,520.