Mortgage calculator
Mortgage calculator
A mortgage calculator is a handy tool that helps you understand the financial implications of taking out a mortgage. It does this by calculating your monthly payments, as well as other important factors such as the interest rate and the length of the loan.
You can use a mortgage calculator to play around with different scenarios, to see how different interest rates or loan lengths would affect your monthly payments. This is a great way to get a handle on your finances and figure out what you can afford.
So how does a mortgage calculator work?
Enter the price (if you’re buying) or the current value (if you’re refinancing) under “Home price.” There is a refinance calculator on NerdWallet as well. Enter the amount of your down payment (if you’re buying) or your equity under “Down payment” (if refinancing). Home equity is the value of the home less any outstanding debt. A down payment is the cash you pay up front to buy a home. Enter the rate under “Interest rate” on the desktop (to the right).
To change the loan term’s length in years, use the plus and minus marks next to “Loan term.” On mobile devices, touch “Refine Results” to access the rate entry area. Then, select the “Loan term” option using the plus and minus symbols. If you don’t want to use NerdWallet’s estimates, you may add your own numbers for property taxes, homeowners’ insurance, and homeowners’ association dues. You can change these numbers by clicking on the quantity that is currently visible.