Monday, June 25, 2012

How to Calculate Home Mortgage Loan Payments [mortgagefraud101.blogspot.com]

How to Calculate Home Mortgage Loan Payments [mortgagefraud101.blogspot.com]

www.banksmartnow.com Skype vbeatteay 800.792.3155 ext. 3789 Mortgage calculators and low Mortgage Rates dont tell the whole story Are Rate and Payment your biggest considerations when looking at a mortgage? They should be a consideration, but a strategy is far more important. Discover the strategies and secrets that the banks would rather you didnt know

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Potential homeowners' number one concern when buying a home is if they can afford the mortgage payments. Most people know that there will be other costs added to the mortgage payment besides the price of the home. The five factors to consider when calculating a mortgage payment are principal, interest, taxes, insurance, and term.

The principal is the amount agreed upon minus any down payment. The down payment can range from zero down to 20% down. This amount is subtracted from the cost of the home.

The interest is the bank's or mortgage company's profit for making the loan. It is determined by the many factor's including the customer's credit rating.

The tax rate is determined by the local government's appraisal on the value of the home.

The lender requires insurance on the home in case of loss due to fire or other catastrophe.

If the customer makes less than a 20% down payment, he must also buy private mortgage insurance. This pays the bank

The term is the most flexible factor in calculating a mortgage payment. The term can be 30 years or longer making the monthly payments smaller, or it can be a 15 or 20-year term, making the payments larger, but also paying off the mortgage faster.

The lender enters these numbers into a mortgage calculator to find the mortgage payment. You can find mortgage calculators that are free to use online. All you'll need are the numbers for each of these five factors to do your home mortgage loan payment.

It is also possible to find an amortization schedule to find the mortgage payment for the principal, interest, and term and then add the insurances and taxes to the total.

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