1. What is a Mortgage Loan Calculator?

Definition: This calculator estimates the monthly payment for a fixed-rate mortgage loan based on the principal amount, interest rate, and loan term.

Purpose: It helps homebuyers and borrowers understand their potential monthly mortgage payments when considering loans from Navy Federal or other lenders.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

Where:

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

Explanation: The formula accounts for both principal and interest payments over the life of the loan.

3. Importance of Mortgage Calculation

Details: Accurate mortgage calculations help borrowers budget effectively, compare loan offers, and determine affordable home prices.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate (without % sign), and loan term in years. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Does this include property taxes and insurance?
A: No, this calculates principal and interest only. A complete mortgage payment may include taxes, insurance, and PMI.

Q2: What's a typical Navy Federal interest rate?
A: Rates vary by market conditions and borrower qualifications. Check Navy Federal's current rates for accurate information.

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 if I want to make extra payments?
A: Extra payments reduce principal faster and can significantly decrease total interest paid.

Q5: Are Navy Federal rates different from other lenders?
A: As a credit union, Navy Federal often offers competitive rates, but always compare with other lenders.