|
CALCULATE YOUR MORTGAGE PAYMENTS RIGHT NOW… at times you may find yourself without a computer or pre-programmed calculator that will allow you to determine the exact particulars of your mortgage.
When that happens, you may need a way to be able to determine mortgage payments "on the fly."
The following table - as presented at the bottom of this page - is a useful tool to be able to calculate mortgage payments using a simple calculator - or a piece of paper and simple multiplication rules.
The example of how it works is followed by the rules and then the tool itself.
| INTEREST RATE |
AMORTIZATION PERIOD |
CHART FIGURE |
MORTGAGE AMOUNT / 1000 |
MONTHLY PAYMENTS |
| i.e 8% |
25 years |
7.63213 |
125 |
$ 954.02 |
How to use this tool:
(1) Calculate the combined monthly before- tax income of you and your spouse.
(2) Divide by three. This figure is the monthly payment you can afford to make on your house.
(3) Take the total price of the house and subtract the amount of money you expect to make as a down payment. This is the money you have to borrow.
(4) Look down the chart and locate the interest rate you expect to pay. Line this up with the amortization period of your choice. (most first-time buyers take the 25 year amortization)
(5) Multiply this figure by the amount you need to borrow. Divide by 1000.
(6) Add to this your estimated monthly heating costs and property taxes.
(7) If this figure is equal to or less than one third of your gross monthly income, (calculated in Step 2) you'll qualify for a mortgage on your dream home.
This Chart Shows the Monthly Payment of Principal and Interest for each $1000 of Mortgage
| INTEREST RATES |
AMORTIZATION PERIOD |
| % |
10 YEARS |
15 YEARS |
20 YEARS |
25 YEARS |
| 3.00% |
9.66 |
6.90 |
5.54 |
4.73 |
| 3.25% |
9.76 |
7.02 |
5.66 |
4.86 |
| 3.50% |
9.88 |
7.14 |
5.79 |
4.99 |
| 3.75% |
9.99 |
7.26 |
5.91 |
5.13 |
| 4.00% |
10.11 |
7.38 |
6.04 |
5.26 |
| 4.25% |
10.23 |
7.50 |
6.17 |
5.40 |
| 4.50% |
10.34 |
7.63 |
6.30 |
.53 |
| 4.75% |
10.46 |
7.75 |
6.44 |
5.67 |
| 5.00% |
10.58 |
7.88 |
6.57 |
5.82 |
| 5.25% |
10.70 |
8.01 |
6.74 |
5.96 |
| 5.50% |
10.82 |
8.14 |
6.85 |
6.10 |
| 5.75% |
10.94 |
8.27 |
6.98 |
6.25 |
| 6.00% |
11.07 |
8.40 |
7.12 |
6.40 |
| 6.25% |
11.19 |
8.53 |
7.26 |
6.55 |
| 6.50% |
11.31 |
8.66 |
7.41 |
6.70 |
| 6.75% |
11.43 |
8.80 |
7.55 |
6.85 |
| 7.00% |
11.56 |
8.93 |
7.69 |
7.00 |
| 7.25% |
11.68 |
9.07 |
7.84 |
7.16 |
| 7.50% |
11.81 |
9.21 |
7.99 |
7.32 |
| 7.75% |
11.94 |
9.34 |
8.14 |
7.47 |
| 8.00% |
12.06 |
9.48 |
8.28 |
7.63 |
| 8.25% |
12.19 |
9.62 |
8.44 |
7.79 |
| 8.50% |
12.32 |
9.76 |
8.59 |
7.95 |
| 8.75% |
12.45 |
9.90 |
8.74 |
8.12 |
| 9.00% |
12.58 |
10.05 |
8.86 |
8.28 |
| 9.25% |
12.71 |
10.19 |
9.05 |
8.45 |
| 9.50% |
12.84 |
10.33 |
9.20 |
8.62 |
| 9.75% |
12.97 |
10.48 |
9.36 |
8.78 |
|
