1. What is a Mortgage Calculator?

Definition: This calculator estimates your monthly mortgage payment based on loan amount, interest rate, and loan term.

Purpose: It helps homebuyers in Georgia understand their potential mortgage payments and budget accordingly.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

Where:

• \( M \) — Monthly mortgage payment (USD)
• \( P \) — Loan principal amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of payments (loan term in years × 12)

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over the specified term.

3. Importance of Mortgage Calculation

Details: Accurate mortgage calculations help borrowers understand affordability, compare loan options, and plan their finances.

4. Using the Calculator

Tips: Enter the loan amount, current Georgia interest rate (default 5.5%), and loan term (default 30 years). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What are current average rates in Georgia?
A: As of 2023, rates vary between 5.5%-7.5% depending on credit score, loan type, and market conditions.

Q2: Does this include taxes and insurance?
A: No, this calculates principal and interest only. Add ~1.5% of home value annually for taxes and insurance.

Q3: How does loan term affect payments?
A: Shorter terms (15 years) have higher monthly payments but lower total interest. Longer terms (30 years) have lower payments but higher total interest.

Q4: What's included in the principal amount?
A: The principal is the loan amount after down payment (home price minus down payment).

Q5: How accurate is this calculator?
A: It provides standard mortgage estimates. For exact figures, consult with a Georgia-licensed mortgage lender.