Looking into refinancing your mortgage or to figure out what your new modified loan payment will be? Maybe you’re looking for that first home you can call your own and want to find out exactly how much the monthly mortgage payment will be. One of the first things any educated consumer needs to do when dealing with real estate and loan is to calculate the mortgage. There are several different ways to this:

  • A mortgage calculator
  • A real estate agent
  • A mortgage lender

A mortgage calculator is a tool used to find what to expect in total payments. It will determine the PITI (principal, interest, taxes, and insurance) that make up a mortgage payment.

If the purchaser puts twenty percent down on their home, they will need to finance twenty percent less of the total cost of their home. As an example, if the asking price of the home is two hundred thousand dollars, and the buyer puts down twenty percent, that means they will pay forty thousand dollars as a down payment, and are left with a mortgage of one hundred sixty thousand to be paid over the period of their mortgage (fifteen to thirty years).

The monthly payment would be approximately nine hundred thirty dollars per month (depending, of course, on interest). Without that twenty percent down however, the monthly payment would be about eleven hundred thirty dollars (using the same interest rate) and this is calculating it over thirty years, so ultimately they will pay well over forty thousand dollars more without that twenty percent down payment.

A realtor trained in how to calculate payments and can be very useful when negotiating the final home cost and knows to calculate my mortgage. They are not professional appraisers but do have a vast knowledge in regard to what homes are worth in a given area, and can offer valuable advice when it comes to calculating a mortgage payment.

The mortgage lender you will go to when closing on your new home will be the final word on exactly how much the monthly PITI will be. This is based on the current federal interest rate for prime loans and will vary sometimes from day to day.

When it is time to close on that home, you will know exactly what to expect to pay each month. So don’t be afraid to ask how to calculate my mortgage before the date of closing.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.