How do I calculate mortgage payments?

The exact amount of your mortgage will depend on several factors, including the price of the home you are purchasing, the amount of your down payment, the interest rate on the loan, and the length of the loan term.

To estimate your monthly mortgage payment, you can use CapCenter's anonymous online mortgage calculator (no sign up required). Our mortgage calculator will allow you to input the location of the home, price of the home, the amount of the down payment, the interest rate, and the loan term, loan program, and property type and will provide you with an estimate of your monthly payment, typical industry lender and non-lender fees, and potential savings with CapCenter services.

You can also calculate your monthly mortgage payment manually by using the following formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]

Where: M = monthly mortgage payment P = the principal, or the amount of the loan i = the interest rate (expressed as a decimal) n = the number of payments over the life of the loan

Keep in mind that this formula only calculates the principal and interest portion of the mortgage payment and doesn't include property taxes, insurance, or any additional payments such as PMI (private mortgage insurance) if you have less than 20% down payment.

It's important to remember that your mortgage payment will also depend on the amount of the down payment, the interest rate, the loan term, and any other associated costs, so it's best to consult with our licensed mortgage consultants or use our mortgage calculator to get a more accurate estimate.

Click to learn more about debt-to-income ratios.

Click to learn more about what makes up a monthly mortgage payment.