This **mortgage amortization calculator** estimates your monthly loan payment value, total interest paid, estimated payoff date and the total out of pocket (incl. tax). There is more information on how to check your amortization schedule below the tool.

## What is amortization?

In mortgage loan contracts signed by a borrower and a lender the amortization is defined as the series of fixed payments the borrower makes to the lender to payoff the debt (principal + interest) which are detailed within a repayment over the agreed period of time.

Usually amortization schedule is presented on a monthly basis, but it can be presented as well on an yearly basis.

This concept is used as it makes very clear the terms that define the payment obligations of the borrower.

## How does this mortgage amortization calculator work?

This tool allows you simulate different mortgage plans for all kinds of payment frequencies such as: weekly, bi-weekly, monthly, bi-monthly, quarterly, semiannually or annually repayment frequency schedule.

The algorithm behind this *mortgage amortization calculator* considers the following variables that should be provided (many of them can be taken from the offer you receive from the bank, plus the ones tax and insurance related you can get as a rough figure from the internet):

- Home price which is the purchasing price of the property;

- Down payment percent is the proportion of cash against the house price you have available for a down payment;

- Loan term in years you plan to repay your principal borrowed plus the interest;

- Annual interest rate % as given by the financial institution;

- Payment frequency (weekly, bi-weekly, monthly, bi-monthly, quarterly, semi-annually or annually);

- Annual property tax cost;

- Annual home insurance value;

- Annual PMI insurance cost;

- Other annual fees & costs;

- Estimated loan start date.

The payment details displayed after applying the standard mortgage loan formulas are:

- Regular (weekly, bi-weekly, monthly, bi-monthly, quarterly, semi-annually or annually) payment value on your mortgage (principal + interest). In most cases the most preferred payment interval is monthly;

- Monthly property tax cost;

- Monthly home insurance cost;

- Monthly PMI insurance cost;

- Other monthly costs & fees;

- Monthly total out of pocket (all the above);

- Home price;

- Loan amount borrowed;

- Down payment;

- Total Paid;

- Total interest paid;

- Loan term;

- Annual Interest rate;

- Payment frequency;

- Estimated payoff date;

- Printable amortization schedule that presents a detailed graph on the payments you should make to the lender until the debt free moment. This can be opened by clicking the “Open mortgage amortization schedule” button.

## Example of a calculation

Let’s assume the following conditions:

Home price: $200,000 | Annual property tax cost: $1,500 |

Down payment percent: 15% | Annual home insurance: $1,500 |

Loan term in years: 30 | Annual PMI insurance: $1,000 |

Annual interest rate: 3.29% | Other annual fees & costs: $1,200 |

Payment frequency - monthly | Estimated loan start date: March 2015 |

Mortgage Payment Details:

■ Monthly payment (principal + interest): $743.59

■ Monthly property tax: $125.00

■ Monthly home insurance: $125.00

■ Monthly PMI insurance: $83.33

■ Other monthly fees & costs: $100.00

■ Monthly total out of pocket: $1,176.92

■ Home price: $200,000.00

■ Loan amount borrowed: $170,000.00

■ Down payment: $30,000.00

■ Total Paid: $267,691.67

■ Total Interest Paid: $97,691.67

■ Loan term: 360 months

■ Annual Interest rate: 3.29%

■ Payment frequency: Monthly

■ Payoff date: February, 2045

07 Mar, 2015