1. What is a Zillow Mortgage Calculator?

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

Purpose: It helps homebuyers and homeowners understand their potential mortgage payments before applying for a loan.

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 calculates the fixed monthly payment required to fully amortize the loan over its term.

3. Importance of Mortgage Payment Calculation

Details: Accurate payment estimation helps with budgeting, loan comparison, and determining affordable home prices.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate (default 3.5%), and loan term in years (default 30). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Does this include taxes and insurance?
A: No, this calculates principal and interest only. For a complete payment estimate (PITI), add property taxes and insurance.

Q2: What's a typical interest rate?
A: Rates vary, but 3-5% is common for conventional loans. Check current market rates for accuracy.

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 more interest.

Q4: What if I make extra payments?
A: Extra payments reduce principal faster, saving interest and potentially shortening the loan term.

Q5: How accurate is this calculator?
A: It provides standard mortgage payment estimates. Actual payments may vary based on lender fees and specific loan terms.