Mortgage Calculator: What Will My Monthly Principal & Interest Payment Be?
If you’re ready to buy a home, it’s important to know what your monthly mortgage payment will be. If you’re considering a fixed-rate mortgage, use our calculator to see the total principal and interest you’ll owe each month, depending on the mortgage amount, annual interest rate and length of time over which you’ll repay the loan (the "term").
For example, if you’re going to borrow $200,000 at 5% and repay it over 30 years, enter "200,000" as the Mortgage Amount, "30" as the Term, and "5" as the Annual Interest Rate.
If you’re considering a fixed-rate mortgage, use this calculator to see the total principal and interest you’ll owe each month.
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What it Means...
If you borrow 200,000 at 5.000% for 30 years, your monthly payment will be $1,073.64.
The payments on a fixed-rate mortgage do not change over time. The loan amortizes over the repayment period, meaning the proportion of interest paid vs. principal repaid changes each month. As the loan amortizes, the amount of monthly interest paid decreases while the amount of principal repaid increases.
Note that principal and interest are usually only a portion of the monthly payment you will make to your bank. Most lenders also require that you include a payment for homeowner’s insurance and property taxes, too. Those payments get dropped into an escrow account so the bank can automatically make the annual or semi-annual insurance and property tax payments on your behalf when the bills come due.
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