How to Calculate a Mortgage

Posted by brainjmedia03 on Thursday, July 26, 2018

Stone Bridge Mortgage_How to Calculate a Mortgage

If you use an online mortgage calculator they will all agree on the monthly payments towards principle and interest. This number gives you a starting point for how much your monthly mortgage payments should be. It gets a little tricky when you try to figure out taxes, insurance, and PM (private mortgage insurance). We won’t get into those last three factors because they differ from calculator to calculator. All calculators do agree on the monthly payments towards principle and interest.

You need four numbers to calculate monthly mortgage payments on principle and interest. The four numbers you need are:

  1. The Selling Price of the House
  2. The Down Payment
  3. Terms of Loan (usually 15 or 30 years)
  4. Current Interest Rate


This is probably the obvious place to start. We need to know the cost of the home that you are getting the loan for.


A down payment is a chunk you pay in cash towards the loan. For home loans 20% is fairly common, but other down payments can range from 5% to 25%.


There are benefits to both 15-year and 30-year loans. In 15-year loans you pay the loan off faster and pay less in interest. If you go with a standard 30-year loan you lower your monthly payments.


Interest rate is a factor that can change from week to week and is a determining factor when buying or selling a home. Rates differ from time to time and bank to bank. This is why you want a mortgage broker to walk you through the process to compare your loan options.

To get an idea of what your monthly payments towards principle and interest will be on a home loan, use the calculator below.


Selling Price$Down Payment$
Interest Rate%Years
Monthly Payment$Change any combination of fields to calculate.

Learn more about calculating a mortgage by watching the video below.

Stonebridge Mortgage Group can help you with you get pre-approved for a mortgage. We serve the greater Portland area and are in Gresham, Oregon.



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