How to Calculate Mortgage Payments

How to Calculate Mortgage Payments

[youtube_sc url=”https://www.youtube.com/watch?v=M8yTlMkFp7E” title=”How%20to%20Calculate%20Mortgage%20Payments”]

How to Calculate Mortgage Payments

It’s Tuesday and I just wanted to do something different and answer a question via Video.

I recently worked with a young couple who was unsure of moving forward on their dream house because they offered $200,000, but the seller would only go as low as $210,000.  It sounds like a big gap, but how many of you really know what an additional $10,000 over 30 years equates to in monthly mortgage payments?  Would it surprise you if I said around $40 give or take?  Imagine giving up your dream home for a measly $40.

I want to take the guesswork out of home buying.  I want my clients to be knowledgeable so that when they buy a house, they know exactly how much they can afford. 

That’s why I proposed this question to Brandon Andrews at Guild Mortgage so that I could get an experts take on just what an additional $10,000 would mean with today’s rates.  Check out his answer below…

Direct Lenders vs. Mortgage Brokers - Brandon Andrews - Guild Mortgage

Buyers have a false impression that increasing their loan amount and borrowing more money will increase their payments significantly.   Where the truth is, per $10,000 financed with a 4.25% rate over a 30-year term the monthly payment only increases by about $40,00 per month.  That’s only $1.33 per day and could cost you from living in your dream home.

I have included a simple mortgage calculator below so that when you’re in the middle of a heated negotiation you can quickly calculate your expected mortgage payments and realize that your dream home is well within reach.

MortgageCalculator


Home Value: $
Loan amount: $
Interest rate: %
Loan term: years
Start date:
Property tax: %
PMI: %
Output parameters »

Free Mortgage Calculators

Join The Discussion

Compare listings

Compare