How to Calculate Your Monthly Mortgage Payment

How to Calculate Your Monthly Mortgage Payment
If you just starting to shop on your home, you might want to know what your monthly payments are going to be. There are many mortgage calculators on the Internet that can help you with this (just type in “mortgage calculator” on your favorite search engine). The things you need to know are mortgage amount, sale price (not counting your down payment), interest rate (also easily found on the web) and the loan period (usually up to 30 years). All you need to do is to enter these numbers into a calculator window and you will get an approximate result. Every case is unique, so for the most accurate figures it is better to personally contact a mortgage broker.

Mortgage calculator can be very helpful if you’re thinking about refinancing your current mortgage loan, too. You'll need to know what your existing home loan balance is, a current mortgage loan interest rate, and the number of years you wish to refinance your home loan. Use the mortgage calculator to calculate your monthly payment and then compare it to your current one. If the new payment is less you probably should go for refinancing your current loan. Another way to make your decision on refinancing is to sum up your current home loan balance, your credit and/or other debts you have; then compare the result to the new payment that you’ve calculated. Sometimes by doing this and refinancing you can save as much as several hundreds of dollars per month. Think about it!

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