Bankrate mortgage loan calculator

The cost of a loan depends on the type of loan, the lender, the market environment, your credit history and income. Secured loans require an asset as collateral while unsecured loans do not. Common examples of secured loans include mortgages and auto loans, which enable the lender to foreclose on your property in the event of non-payment. In exchange, the rates and terms bankrate mortgage loan calculator usually more competitive than for unsecured loans.

The calculus behind mortgage payments is complicated, but Bankrate's Mortgage Calculator makes this math problem quick and easy. First, next to the space labeled "Home price," enter the price if you're buying or the current value of your home if you're refinancing. In the "Down payment" section, type in the amount of your down payment if you're buying or the amount of equity you have if you're refinancing. A down payment is the cash you pay upfront for a home, and home equity is the value of the home, minus what you owe. You can enter either a dollar amount or the percentage of the purchase price you're putting down. Finally, in the "Interest rate" box, enter the rate you expect to pay.

Bankrate mortgage loan calculator

Interest-Only Mortgage Calculator. An interest-only mortgage is a loan with monthly payments only on the interest of the amount borrowed for an initial term at a fixed interest rate. The interest-only period typically lasts for 7 - 10 years and the total loan term is 30 years. After the initial phase is over, an interest-only loan begins amortizing and you start paying the principal and interest for the remainder of the loan term at an adjustable interest rate. Using an interest-only mortgage payment calculator shows what your monthly mortgage payment would be by factoring in your interest-only loan term, interest rate and loan amount. Interest-only loans can also be good for people who have a rising income, significant cash savings and a high FICO score or higher and a low debt-to-income ratio. Often, the standards for an interest-only mortgage will include higher credit scores, more cash reserves and assets, and higher household income than a traditional amortized loan, which means a portion of the monthly mortgage payment goes toward the principal. However, after the initial period expires, the mortgage rate on an interest-only mortgage becomes adjustable, which can significantly drive up your monthly payments. In addition, the payment will also be much higher because it will include principal that must be repaid over a shorter period than the original loan term. Once the interest-only period ends, you can refinance the loan , pay it off in full or begin paying down the principal in monthly installments for the remainder of the loan term. Ready to see if an interest-only mortgage is a good fit for you? Here are some of the benefits. For properties where the owner will sell or refinance before the interest-only term expires, it can be smart. By the time the seven-year interest-only period is up, the homeowner will either refinance to a fixed-rate mortgage or will be ready to downsize and sell the home. What are the cons of using an interest-only calculator?

FHA Refinance Rates. Biweekly mortgage payment calculator. Mortgages Mortgage Calculator.

These funds go directly to the purchase of the home, and can come from your savings, a gift from family or a friend, proceeds from the sale of another home, grants and other sources. This calculator helps illustrate what happens when you put down more or less. To use it:. This also might keep you from taking on more debt than you can handle. For the most common types of mortgages, lenders charge premiums when you put less than 20 percent down.

The cost of a loan depends on the type of loan, the lender, the market environment, your credit history and income. Secured loans require an asset as collateral while unsecured loans do not. Common examples of secured loans include mortgages and auto loans, which enable the lender to foreclose on your property in the event of non-payment. In exchange, the rates and terms are usually more competitive than for unsecured loans. Common types of unsecured loans include credit cards and student loans. Loan Calculator. These are mortgages, auto loans, student loans and other types of personal loans that are paid off in regular installments over time, with fixed payments covering both the principal amount and interest. Our calculator shows you the total cost of a loan , expressed as the annual percentage rate, or APR. Enter the loan amount, term and interest rate in the fields below and click calculate to see your personalized results. A calculator can help you narrow your search for a home or car by showing you how much you can afford to pay each month.

Bankrate mortgage loan calculator

Bankrate's calculator also estimates property taxes, homeowners insurance and homeowners association fees. You can edit these amounts, or even edit them to zero, as you're shopping for a loan. This can help you decide whether to prepay your mortgage and by how much. The major part of your mortgage payment is the principal and the interest. The principal is the amount you borrowed, while the interest is the sum you pay the lender for borrowing it. Your lender also might collect an extra amount every month to put into escrow, money that the lender or servicer then typically pays directly to the local property tax collector and to your insurance carrier. For the mathematically inclined, here's a formula to help you calculate mortgage payments manually:. This formula can help you crunch the numbers to see how much house you can afford. Alternatively, you can use this mortgage calculator to help determine your budget. An online mortgage calculator can help you quickly and accurately predict your monthly mortgage payment with just a few pieces of information.

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Popular next steps Mortgages Compare mortgage rates. Initially, most of your payment goes toward the interest rather than the principal. You can use the mortgage calculator to determine when you'll have 20 percent equity in your home. Personal Finance. Your next step after exploring the numbers:. The table above links out to loan-specific content to help you learn more about rates by loan type. Finally, in the "Interest rate" box, enter the rate you expect to pay. Refinance mortgage calculators Should you refinance your mortgage? Once you have 20 percent equity, that fee goes away, which means more money in your pocket. Amortization is paying off a debt over time in equal installments. Refinance calculator Caret Right. You can also see the loan amortization schedule, or how your debt is reduced over time with monthly principal and interest payments. Our home equity calculators can answer a variety of questions, such as:. Mortgage Down Payment Calculator.

Use Bankrate's mortgage calculators to compare mortgage payments, home equity loans and ARM loans.

How do I calculate monthly mortgage payments? The loan amortization schedule will show as the term of your loan progresses, a larger share of your payment goes toward paying down the principal until the loan is paid in full at the end of your term. First, next to the space labeled "Home price," enter the price if you're buying or the current value of your home if you're refinancing. Blended-rate mortgage calculator. ARM Refinance Rates. Rent or buy a home: Which is right for you? These loans come with lower monthly payments, although you'll pay more interest during the course of the loan. Auto Loan Calculators. Common types of unsecured loans include credit cards and student loans. You can enter either a dollar amount or the percentage of the purchase price you're putting down.