Key Details of a Mortgage Calculator

Inputs:

• Loan Amount: The total amount borrowed.
• Interest Rate: The annual percentage rate of the loan.
• Loan Term: The repayment period, typically in years (e.g., 15, 20, or 30 years).
• Down Payment: The upfront payment toward the purchase price.
• Property Taxes: Estimated annual taxes (optional).
• Homeowner’s Insurance: Annual insurance cost to protect the home (optional).
• PMI (Private Mortgage Insurance): Costs added if the down payment is below a threshold (commonly 20%).

Outputs:

• Monthly Payment: The combined amount for principal, interest, taxes, insurance, and PMI.
• Total Interest Paid: The cumulative interest over the loan’s life.
• Amortization Schedule: A breakdown of each payment into principal and interest portions over time.
• Total Loan Cost: The sum of all payments, including interest and fees.

Additional Features:

• Prepayment Options: Calculates the impact of extra payments on reducing loan duration and interest.
• Comparison Tools: Allows side-by-side evaluation of multiple loan options.
• Affordability Calculator: Helps determine how much you can borrow based on your income and expenses.
• Interactive Graphs: Displays payment trends and remaining balance over time.

A mortgage calculator is essential for budgeting, comparing loan options, and planning your finances effectively.