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# Free Mortgage Calculator

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## Mortgage Payment Calculator FREE

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### Overview

Principal
Interest
Total
Principal
Interest
Maintenance
Property taxes
Insurance
Rental income

This calculator lets you calculate exact mortgage amount you need to pay weekly, every fortnight, monthly, quarterly and annually.

### What is Free Mortgage Payment Calculator?

It is a free computing tool which has replaced the traditional way of calculation with pen and paper. This tool is exclusively use to find the exact monthly amount need to be paid for home loan. Calculation of mortgage payment consists of many variables - total loan amount, down payment, amortization period, interest rate, taxes, maintenance, insurance and rental income. All the computing job is done in fraction of second with the Mortgage Calculator

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All you need to do is fill up all the details and click calculate and you are done. Unlike other free mortgage calculator, we have created very simple and user friendly tool which is easy to use and understand.

For the calculation of mortgage first we need to understand each and every variable related to it.

Loan Amount : This is the total amount which you need to buy the house, principal amount plus down payment. Basically this is the actual price which is costing you for buying the house excluding interest, taxes and other charges.

Down Payment : Banks do not trust customers easily, so they made a policy of depositing certain amount before giving you a home loan, just in case the customer stops paying installments. Down payment is the upfront amount that needs to be deposited to get a home loan.

Amortization Period : The total tenure to repay the loan amount in weekly, monthly or yearly installments is called the amortization period. For home loan or any other loan for huge amount, this period is generally more than ten years, however, you can make it shorter as per availability of your funds.

Interest Rate : Interest rate is the percentage of the total amount you pay other than the principal amount and is decided by the concern bank or credit union. Interest rates can vary for all financial institutions. It is not fixed. Interest rates depends on the economy, however, you can lock the rate but then it will increase by one point. Let's say while taking a home loan agreed interest rate was 3.8% and you don't want it to fluctuate, in that case you can lock it at 4.8%.

Maintenance : Where there is fire there is smoke and so is expenses of owning a house, This amount gets added to the total mortgage so that you can figure out the actual amount you need to pay for the property. This can very every year or every month, it mostly depends on personal choices. Lets say you want to use expensive furniture and art works, in that case maintenance cost will increase for sure.

Rental Income : This is the rent you receive every month in case you rent your property. This amount gets subtracted from the total amount in the Free Mortgage Calculator.

Property Tax : It depends on the worth of the property on that particular year. It is determined by the local tax authority. It may change every year depending upon the location of the property. This is a liability so it gets added to the total amount in the Free Mortgage Calculator.

Home Insurance : Any form of natural or unforeseen circumstantial calamities is covered by home insurance. It is mandatory if you are applying for a home loan. This also comes under liability while calculating mortgage.

Mortgage Insurance : This is the insurance which is beneficial to the lenders when there is a default of payment. It can be taken off when 80% of the mortgage payment is paid.

### How Free Mortgage Calculator can help me?

It can be a help in many situation while calculating your mortgage.

1. If you want to make a prepayment on your mortgage and want to reduce the amortization period, you can easily calculate everything in one go.
2. On few of the months some of the variable may go up or come down, you can easily verify or calculate and see how it affected your mortgage amount.
3. If you are planning to buy a house, with the help of mortgage calculator you can find all the numbers in one page and then plan accordingly. You can get clarity on whether you can afford to buy a home or not.
4. And the most important point if you are using the free mortgage calculator, agents can't just say anything and you can determine if there are any hidden cost attached to the home loan.

Most of us buy only one house in our lifetime and make it our sweet home. As mortgage plays a big role in our happiness of owning a home, we must take it seriously and calculate each and every possibility to get the best out of it. And definitely this tool will help towards the journey of buying a home. Good Luck!!