Curious what your monthly mortgage payments will be?
Use this mortgage calculator to determine what your monthly mortgage payment amount will be, and for each month, find out what portion will be interest (paid to the lender) and what portion will be principal, increasing your equity! You'll notice that over time, the interest paid goes down, and the amount towards principal goes up.
Enter the following four (4) fields:
MORTGAGE AMOUNT = PURCHASE PRICE - DOWN PAYMENT
Down payment is the amount you will provide prior to the closing date that is essentially your "skin the game". It includes your deposit amount, which you will provide to be held in trust, within 24 hours of negotiating an accepted agreement. It does not include closing costs (lawyer's fees, disbursements, mortgage loan insurance*). You will need to provide at least 5% of the purchase price as your down payment, and the lender will provide at most 95% of the purchase price, in the form of a mortgage.
INTEREST RATE: the cost of borrowing, assumed to be fixed over the entire amortization period, when in fact, interest is usually renegotiated at the end of each mortgage term, when rates may be have gone up or down. A variable interest rate will result in a different payment amount. For more information, contact your mortgage professional.
AMORTIZATION: the number of years over which you will repay the principal borrowed, as well as the interest. A typical amortization length is 25 years, even though today's buyers rarely stay in one property for that long.
PAYMENT FREQUENCY: you can pay your mortgage monthly, or match it to your pay schedule. There are some real advantages to using an accelerated schedule.
Click CALCULATE for your payment amount. If you then click DOWNLOAD EXCEL FILE you'll get a comparison of the five (5) different payment frequencies and the total interest paid.
Does this affect YOU? The minimum down payment required will change February 15, 2016 for mortgages over $500,000.