Mortgage Now

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There are five simple steps to calculate mortgage. The first step would be to calculate the interest and principle payment depending on the amount your borrowed, the term life of the loan (15 year, 30 year…etc) and the interest rate. The second step is to figure out how much your yearly property taxes are, then you divide that by the number of payments you make a year(12 months) or bi-weekly(26 months). Step three is to figure out your homeowner’s insurance costs a year and divide that by number of payments a year. Step four is to add in the private mortgage insurance (PMI). The fifth and final step is to add everything up the monthly interest and principle payment plus the taxes plus insurance plus PMI. This will give you your monthly mortgage payment. There are many websites that have mortgage calculators, you can easily put the information in and the mortgage calculator will figure everything out, some even figure out the taxes and insurance.

PMI is when you do not own twenty or more percent of your home. This is determined by your loan to value (LTV), if the LTV is eighty percent or less, than you will not have PMI. Also you can have a mortgage payment without taxes and insurance included, but most lenders require that you have taxes and insurance included with the mortgage.

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