Estimate your monthly mortgage payment:
Using a financial calculator to estimate your monthly mortgage payment for refinancing is straightforward once you understand the key variables. These calculators apply the standard amortization formula to determine fixed monthly payments based on your loan details.
How to do the calculation:
Here are the main inputs:
- Loan Amount or Present Value (PV) –the principal you’re borrowing (e.g., $300,000).
- Interest Rate (I%) – The annual interest rate (e.g., 6.5%).
- Loan Term (N) – The total number of months in your mortgage (e.g., 30 years × 12 = 360 months).
- Future Value (FV) – For mortgages, this is usually 0, since the goal is to fully repay the loan.
- Payment (PMT) – The value you’re solving for.
To calculate:
- Set N to the number of months.
- Enter I% as the monthly rate.
- Input PV as the loan amount.
- Set FV = 0.
- Solve for PMT to get your monthly payment.
Most calculators let you adjust for taxes and insurance separately, but this basic PMT result covers principal + interest only. This method helps you quickly compare loan options, see how extra payments change results, and budget more precisely.
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If you want to include fees and insurance, you’ll have to find out first from the lender how much they charge. Normally, it is between 0.5% and 1% of the mortgage amount.
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Ps: Please check out other posts on refinancing loans.
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