Mortgage Calculator – Investing.com
Mortgage Calculator Glossary
The Investing.com Mortgage Calculator is designed to help you calculate your monthly mortgage payment. Estimate your monthly fees by adjusting different variables such as loan amount, annual interest due, loan term and more. This tool will allow you to calculate an appropriate budget for the purchase of your new home.
The deposit is the initial part of the total amount due, to be paid in advance in cash.
A principal payment is a payment toward the principal amount owed, unlike interest payments, which are usually processed first.
Annual interest rate
The annual interest rate determines the amount of interest payable on the mortgage. Generally, a bank or lender offers two types of rates – a fixed rate and an adjustable rate (ARM).
Number of years
The term of the mortgage; the length of time required to fully repay the loaned amount to the lender.
Property tax is a tax levied by the local government on property owners. The expected amount to be paid is integrated into the monthly payment for the entire term of the mortgage loan.
Property insurance protects the homeowner against various perils, such as fires, storms and more. This insurance is often required by lenders and is added to your monthly payment.
Mortgage insurance protects and partially compensates lenders in the event of default on the loan.
Total of all payments
The total expected monthly payment, including interest, principal payments, insurance, etc.
Monthly net income
Your monthly net income corresponds to the monthly amount paid to you after taxes and various source deductions.
A mortgage balance is the total amount owed at a given time during the term of the mortgage loan; this is the sum of the principal remaining to be repaid.