1. What is a Simple Mortgage Loan Calculator?

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

Purpose: It helps homebuyers and borrowers understand their potential monthly mortgage payments before committing to a loan.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

Where:

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

Explanation: The formula calculates the fixed payment needed to fully amortize (pay off) the loan over the specified term.

3. Importance of Mortgage Calculation

Details: Understanding your monthly payment helps with budgeting, loan comparison, and determining how much house you can afford.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate (as a percentage), and loan term in years. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Does this include taxes and insurance?
A: No, this calculates only principal and interest. Your actual payment may include escrow for taxes and insurance.

Q2: What's a typical mortgage term?
A: Most mortgages are 15 or 30 years, but terms can range from 10 to 40 years.

Q3: How does interest rate affect payments?
A: Higher rates increase monthly payments. Even 0.5% difference can significantly impact your payment.

Q4: What if I want biweekly payments?
A: Divide the monthly payment by 2 and make 26 payments yearly (equivalent to 13 monthly payments).

Q5: How accurate is this calculator?
A: It provides precise principal+interest payments, but actual lender quotes may vary slightly.