So You Need A Mortgage Payment Calculator?
If you’re like most people, you don’t do mortgage calculations on a daily basis. Yet, if you’re in the early stages of buying a home (or an investment property) you’ll need to figure out mortgage payments often. At some of those times you will not have access to a mortgage payment calculator.
So what do you do?
You can contact a Realtor or a mortgage broker or lender. Surely, they have a mortgage calculator in their pocket or purse. But they’re going to want to talk to you about many things before they let you use their mortgage payment calculator. They’ll want you name, phone number and the answers to tons of other questions. And they’ll probably call you back, try to sell you their services.
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If you’re like most people, you’d rather not access a lender’s or the real estate agent’s mortgage payment calculator early in the property buying process. So, you look for a mortgage payment calculator online. Maybe, just maybe, someone out there has a mortgage payment calculator you can use with no strings attached, right?
So you Google ‘mortgage payment calculator‘ and get some. But they want your email address and stuff.
So, what do you do now? How do you know what the payment for a $215,000 mortgage loan at 6% is going to be if the loan is amortized over 30 years without a mortgage payment calculator?
Read this article. By the time you’re done, you’ll be able to do this type of calculation as if you had a mortgage payment calculator embedded in your brain. A good mortgage payment calculator too.
Become A Mortgage Payment Calculator – It’s Easy
The first step to becoming a mortgage payment calculator is to learn the mortgage payment for $10,000 for 4%, 5%, 5%, 7%, 8%, 9%, 10%. I’ll show you a trick that makes it really easy.
You’re using $10,000 because it’s an easy number to work with.
My mortgage payment calculator says that the monthly mortgage payment for a $10,000 loan at 4% amortized over 30 years is 47.74$ and my mortgage payment calculator is right. Here’s the nifty part:
Percentage Monthly Payment
- 4 $47.74
- 5 $53.68
- 6 $59.96
- 7 $66.53
- 8 $73.38
- 9 $80.46
- 10 $87.76
The nifty part is this: the difference between percentages starts at $5.94 and ends up at $7.3. So if you learn that at 4% is $47.74, you get a great idea of what the rest is.
So, if 4% gets you 47.74
- 5% gets you 47.74+6=53.74 (mortgage payment calculator says 53.68)
- 6% gets you 47.74+12=59.74 (mortgage payment calculator says 59.96)
No you need to start adding a 7 to what came before. So
- 7% gets you 47.74+6+6+7=66.74 (mortgage payment calculator says 66.53)
- 8% is 47.74+6+6+7+7=73.74 (mortgage payment calculator says 73.38)
- 9% is 47.74+6+6+7+7+7=80.74 (mortgage payment calculator says 80.46)
- 10% is 47.74+6+6+7+7+7+7=87.74 (mortgage calculator says 87.76).
You could also learn what the mortgage payment is at 4%, and at 7% and then add whatever the sixes or sevens you need to get the mortgage payment for the interest rate that interests you.
Now, knowing this you can easily calculate the mortgage for $100,000 at 8%, right. You just multiply 73.37 by 10. To know the mortgage payment at 7.25% is not too hard. You already know how to figure out the payment at 7%. You know that you have to add 7 to that to get to the payment for 8%. So you know that you have to add a quarter of $7 to get to the mortgage payment for 7.25. So 66.74 + 1.75=67.99.
For numbers such as 7.37 you have to guess. And you can guess safely. .37 of 7 is not quite 3.5.
If you went with 3.4, you’d get 66.74 (the monthly payment for 7%)+3.4=70.14
If you went with 3.3, you’d get 70.04.
The mortgage payment calculator says 69.03. A difference of $1.11 for the first guess, a difference of $1.01 for the second one.
Now this is for a $10,000 loan. On a $100,000 the difference, the above become differences of $11.10 and $10.10 a month. In other words, not enough that you don’t have a pretty good idea of what the mortgage will be.
If the loan is for $230,000, you multiply the mortgage payment for $10,000 by 10 and then add 3 more payments.
$230,000 at 8% over 30 years is 73.74 x 20 which is $1,474.8 + 73.74+73.74+73.74 or 1696.02.
Of course, you can round up and say $1,475 + 75 +75 +75 which is $1,700. Yes, you’re off, but not by enough to make a difference. (Mortgage payment calculator says $230,000 at 8% amortized over 30 years is $1687.66.
You Are Now A Walking Mortgage Payment Calculator
And, of course, you can take the same approach to mortgages amortized over 15 years.
Look up current mortgage rates and start calculating. Because now you are a walking mortgage payment calculator.