When applying for a mortgage it’s important to know whether it will be affordable, how much tax will be payable and also the cost of insurance. Our mortgage payment calculator can help you work out exactly how much your monthly payments will be after all these factors and others have been included.
The calculator can be used to asses the maximum affordable interest rate on the mortgage or if you already know it will calculate the monthly payments.
Mortgage Payment Calculator: How To Use
Purchase Price: The amount you will be paying for a property or the estimated value of a property you maybe considering buying.
Down Payment: More commonly known as the deposit in the UK. This is a percentage of the properties value you will be paying upfront and will determine the loan to value of the mortgage.
Mortgage Term: The length of time your mortgage will be repaid over. Typically a mortgage is repaid over 25 years but there is no minimum or maximum.
Interest Rate: The amount you will pay each month on top of your repayments of the original loan.
Property Tax: Properties valued over a specific amount will incurred a tax when purchasing them. In the UK the threshold is from over £125,000.
Property Insurance: If you already know how much your building or contents insurance will be for the property it can also be included. You don’t need to include it however it might make your monthly repayments lower than they will be when the mortgage starts.
PMI: Sometimes a lender will require a person to purchase private mortgage insurance. This protects the lender if you default on the loan. Doesn’t have to be include in the mortgage payment calculator above however could impact the results accuracy.
First Payment Date: The date which you will make your first repayment to the lender, this can also be ignored if you’re unsure when this may be. This is just used to tell you when payments will end and give a month by month overview of payments.
If you are unsure about how to use the mortgage payment calculator or what expert advice just call our mortgage adviser’s on 0800 783 4440.