If you use a mortgage calculator you will be prompted to insert the sale price of home, the percentage down, length of mortgage and annual interest rate. The annual interest rate it's different for each bank, in US, the average interest rate is 7%. You should know the interest rate for your bank before using mortgage calculator. If the percentage down is less than 20%, you will pay Private mortgage insurance, which tends to be about $55 per month for every $100,000 financed (until you have paid off 20% of your loan). If you check the "Explain Calculations" box you will get a lot of additional information and the amount paid every month for the whole duration of the loan.
After you complete all fields, you will get the results. First you will get monthly payment with principal and interest only, where we add private mortgage insurance, and residential (or property) taxes. The average residential tax rate seems to be around $14 per year for every $1,000 of your property's assessed value.
The amount you must pay every month after all taxes and insurances is shown in the "TOTAL Monthly Payment" section. In the next section is shown how this calculator got those values.
If you checked the "Explain Calculations" box, you will see how much you will pay every month in every year of the duration of the mortgage, with amortization explained. Also, for every month you will know how much you will pay for principal, for interest, and after every month you will get the remaining balance.
Mortgage Calculator
Article Source: http://EzineArticles.com/?expert=Lucian_Apostol
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment