Real Estate Mortgage Calculator
Monthly Payment: $0.00
Loan Amount: $0.00
Property Tax: $0.00 / month
Insurance Cost: $0.00 / month
Loan Amount | Monthly Payment | Monthly Tax | Monthly Insurance | Total Monthly |
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$0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Understanding Mortgages and Real Estate Financing
A mortgage is a financial agreement between a borrower and a lender—usually a bank or mortgage company—that allows an individual to purchase real estate by borrowing money, which is then repaid over time with interest.
How Does a Mortgage Work?
- Home Price: Total cost of the home.
- Down Payment: Percentage paid upfront (typically 3%–20%).
- Loan Term: Loan duration (15, 20, or 30 years).
- Interest Rate: Annual rate charged by the lender.
- Property Taxes: Annual tax based on home value.
- Homeowner’s Insurance: Required protection for property and liability.
Example Calculation
Component | Amount |
---|---|
Home Price | $400,000 |
Down Payment (20%) | $80,000 |
Loan Amount | $320,000 |
Interest Rate | 4.5% |
Property Tax (1.2%) | $400/month |
Insurance | $100/month |
Total Monthly Payment | $1,950 |
Conclusion
Using a mortgage calculator helps you plan better and estimate your financial commitment before buying a property. Share this tool with friends and family who are planning to invest in real estate.