To use a mortgage payment calculator, all you need are a few details about your loan:
- The total loan amount (also known as the principal). This is calculated by subtracting your down payment from the purchase price of your home plus any closing costs and fees.
- The annual interest rate of your loan, keeping in mind that the annual interest rate is different than the annual percentage rate (APR).
- The term of your loan, or the number of years that you have to pay back the loan. Typically 15 or 30 years.
- The number of payments you make in a year, which is usually 12 (once a month) for mortgage loans.
- The type of loan you are receiving, such as interest-only, fixed-rate, or adjustable-rate mortgage.
- The current market value of the home.