FINANCIAL TOOLS
Mortgage Comparison Calculator
Compare multiple mortgage options side by side to find the best deal.
What is the Mortgage Comparison Calculator & How does it work?
A mortgage is a loan used to purchase real estate. The monthly payment on a mortgage depends on several factors, including the principal amount, interest rate, and loan term.
The formula for calculating the monthly mortgage payment (M) is:This formula helps you understand how different mortgage options can affect your monthly payments and total cost over time.
The formula for calculating the monthly mortgage payment (M) is:
M = P times frac{r(1+r)^n}{(1+r)^n-1}
P = Principal amount
r = Monthly interest rate (annual rate divided by 12)
n = Number of payments (loan term in years multiplied by 12)
r = Monthly interest rate (annual rate divided by 12)
n = Number of payments (loan term in years multiplied by 12)
Parameters
Result—
Frequently Asked Questions
How do I calculate my monthly mortgage payment?
Use the formula M = P × (r(1+r)^n) / ((1+r)^n - 1), where P is the principal amount, r is the monthly interest rate, and n is the number of payments.
What factors affect my mortgage payment?
Your monthly mortgage payment is affected by the principal amount, interest rate, and loan term.
How do I convert an annual interest rate to a monthly rate?
Divide the annual interest rate by 12 to get the monthly interest rate.
What is the difference between principal and interest in a mortgage?
Principal is the initial amount borrowed, while interest is the cost of borrowing that money, calculated as a percentage of the principal.
How does the loan term impact my monthly payment?
A longer loan term typically results in lower monthly payments but higher total interest paid over time.
Can I use this calculator for refinancing a mortgage?
Yes, you can use this calculator to compare different refinance options and see how they affect your monthly payment.
What should I consider when choosing a mortgage loan term?
Consider your budget, interest rate, total cost of the loan, and whether you plan to stay in the home long-term.
Results are for informational purposes only and do not constitute professional advice.