# Mortgage Calculators – Learn How to Calculate Your Monthly Payment

What is payment calculator for? How can a calculator help you determine your monthly mortgage payments? Use this calculator to know how your monthly payments will be based on changes in your current inputs:

Home Value. The current selling price of a home negotiated between the seller and buyer. The total value of a home determined by using the mortgage lender’s official sales figures. The seller’s down payment is also taken into account. The seller will include any fees associated with a closing, which may be a percentage or interest. If your home is financed through a bank, the bank will typically add the fees to the principal amount owed. You will not see the fees on your monthly mortgage statement.

Payment Rate. The amount you will pay every month towards your monthly mortgage payment. The payment rate may change over time as you age and the interest rate on your loan may change. You may also get a lower payment if you make some upgrades in your home such as adding a new garage, putting in a new bathroom, adding more square footage, or if you use your home as an investment. Be sure to get a quote from the mortgage company for their loan calculator. This will help you decide how much your monthly payment will be as you adjust the payment you are currently making.

Monthly Payment Amount. This is the amount that you will have to pay each month towards your mortgage. In order to get the best possible monthly payment amount, make sure to factor in all your monthly expenses and income. Take into account any loan principal that are paid back each month and what percentage of that loan principal you are paying back each month. You may be able to negotiate a lower payment. It will take some work on your part but it is worth the effort when you are paying off your loan in a shorter period of time.

Payment Schedule. This shows how long your monthly payment will last, as well as how much you will be paying each month. A standard payment plan may be different than an adjustable-rate plan. Most variable-rate mortgages last a fixed number of years. Many people choose to change the rate as often as possible to keep their monthly payments low and to increase their monthly savings. If your payments drop below the amount needed to pay off the mortgage, you can usually refinance. There are loan programs that will help you to refinance at the current rate if you have a FICO score that indicates your credit rating is not as good as the lender would indicate.

Before you begin using your mortgage calculator, you should review the homeowner’s manual to understand exactly what information is required to calculate your payments. Also be sure to review the mortgage calculator and get a quote from your lender to determine the payments that are necessary for you mortgage. By following these simple steps, you can determine your monthly payment and budget more effectively and save hundreds of dollars in interest costs over time.