Question:

How to calculate monthly payment on a mortgage?

Answer:

If you know how much your mortgage loan amount will be and your rate, you could calculate the monthly payment on a mortgage very easily. To be more precise, you will need to know your mortgage insurance premiums and property taxes to arrive at the complete PITI payment.

To calculate your monthly home loan payment, you could use a mortgage calculator or some Excel functions. The basic input is the loan amount, interest rate and term of the mortgage.

Fixed rate mortgage monthly payment is easiest to compute. If you have a fixed rate mortgage of $200,000 at 5.5% your monthly payment is $1,135.58 (principal and interest).

To arrive at the complete PITI (principal, interest, taxes, insurance) payment, you will need to know the taxes and homeowners insurance required. If the yearly amount of taxes and insurance is $2400, you may have to add $200 to your mortgage principal and interest payment. That is, your complete PITI monthly payment on a mortgage will be $1,335.58.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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