There are different lending rules that will apply to you, depending on the type of borrower you are.Ī high-ratio borrower is considered by a lender to pose higher risk of default, because they have put less cash equity up front into the home purchase, and are more leveraged with mortgage debt. Monthly payment = mortgage principal x (1+ monthly interest rate)^number of payment periods)/(1+monthly interest rate)^number of payment periods -1)Ĥ00,000 x (1+ 0.00459)^300)/(1+0.00489)^300 - 1) = $2,301ĭepending on the size of your down payment, you will either be classified as a low-ratio borrower (meaning you’ve paid more than 20% down), or a high-ratio borrower (less than 20% down). Step 4: Apply the mortgage payment formula: Payment periods = number of years x 12 months Step 3: Calculate the number of total payment periods: Monthly interest rate = annual interest (%) / 100 / 12 months Take your 4.89% rate and divide by 12 to determine your monthly interest rate = 0.00489. Step 2: Determine your monthly interest rate Purchase price - down payment = mortgage principal Step 1: calculate your mortgage principal amount with the following formula: First, Let’s assume you are buying a home with an asking price of $500,000, and are making a down payment of 20% ($100,000), with a mortgage rate of 4.89%, and amortization of 25 years. While plugging your info into our calculator is a fast and convenient way to determine your mortgage payments, let’s break down the math.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |