Use this tool to estimate your mortgage-backed securities investment returns accurately.
Fixed-Rate Mortgage Calculator
Use this calculator to estimate your monthly mortgage payments. Simply enter the loan amount, the annual interest rate, and the loan term. Adjust the number of monthly payments if needed.
How to Use the Calculator
- Enter the principal amount of the loan.
- Enter the annual interest rate (as a percentage).
- Enter the loan term in years.
- Enter the total number of monthly payments.
- Click the “Calculate” button to see your estimated monthly payment.
Calculation Explanation:
This calculator uses the following formula to compute the estimated monthly payment:
Monthly Payment = (Principal * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^-Number of Monthly Payments)
Where:
- Principal is the loan amount.
- Monthly Interest Rate is the annual interest rate divided by 12, expressed as a decimal.
- Number of Monthly Payments is the total loan term in months.
Limitations
Keep in mind that this calculator provides an estimate based on the inputs provided. Actual monthly payments may vary based on additional factors such as taxes, insurance, and other fees. Always consult with your lender for precise payment amounts.
Use Cases for This Calculator
Estimate Your Mortgage Payment
Determine your monthly mortgage payment effortlessly with the MBS estimator. By entering details such as the loan amount, interest rate, and loan term, you can see an accurate breakdown of your payment, including principal, interest, taxes, and insurance.
Assess Your Loan Affordability
The MBS estimator allows you to evaluate what mortgage amount you can afford based on your financial situation. Input your income, debt-to-income ratio, and desired payment amount to receive personalized insights tailored to your budget.
Compare Different Loan Scenarios
Use the MBS estimator to explore various loan scenarios by adjusting interest rates and terms. This feature gives you the flexibility to compare how these variables impact your monthly payment and total interest paid over time.
Calculate Your Closing Costs
Get a clearer picture of the total cost of homeownership by estimating closing costs. Enter data such as loan type and property value to produce an estimated breakdown, including appraisal fees, title insurance, and other closing fees.
Evaluate the Impact of Prepayments
Optimize your mortgage strategy by evaluating the effect of making additional payments. The MBS estimator lets you input extra monthly or annual payments, showing how these contributions can significantly reduce the loan term and total interest paid.
Analyze the Benefits of Refinancing
Determine the potential savings of refinancing your existing mortgage using the MBS estimator. Input your current mortgage details alongside new loan offerings to compare your current payment with estimated new payments and potential savings.
Understand Amortization Schedules
Dive deeper into your mortgage details by generating an amortization schedule. This feature provides a month-by-month breakdown of your payments, showing how quickly you are reducing your principal balance over the life of the loan.
Calculate Property Appreciation
Estimate future property values with the MBS estimator by inputting your current home value and expected appreciation rate. This can help you assess the financial growth of your investment over time and make informed real estate decisions.
Budget for Home Maintenance and Repairs
Factor home maintenance and repair costs into your budget planning with the MBS estimator. Input typical yearly maintenance expenses based on home value to understand the long-term financial responsibilities of homeownership.
Plan for Rent vs. Buy Decisions
Weigh the pros and cons of renting versus buying with the MBS estimator. Input your potential rent costs alongside estimated mortgage payments, property taxes, and maintenance costs to make an informed decision on your living situation.