A mortgage calculator is an interactive tool that allows you to calculate different aspects of your mortgage payment. The calculator will ask for user inputs in order to generate outputs such as the amount of your monthly mortgage payment, the breakdown of your payment, principal pay off, accrued interest, and more!

Who should consider using a mortgage calculator?

If you are considering a home purchase, it is likely you’ll need a mortgage loan. We recommend working with a loan officer to get pre-approved for a professional opinion of your home buying options. However, if you want to get a ballpark estimate of what you will expect to pay when becoming a homeowner, using a mortgage calculator is the perfect tool!

What information is needed when using a mortgage calculator?

When using a mortgage calculator, you will need to provide specific inputs in order to receive an accurate output. Some common inputs needed for these tools are:

  • Price of the home loan you plan to acquire
  • Down payment amount or percentage
  • Location of potential property
  • Type of potential property
  • Monthly taxes
  • Insurance
  • HOA fees
  • Credit score
  • Additional personal information

Once you’ve provided the required inputs, understanding that every mortgage calculator may differ slightly, you will receive the output of an estimated mortgage payment and loan options.

How does a mortgage calculator work?

A mortgage calculator will require certain inputs in order to produce the desired output.

Choose the loan type.

Initially, you will have to choose the loan type for your home financing. You may choose from options such as FHA, Conventional, Jumbo, Rural Housing, and Veteran loans. This will help populate a more accurate mortgage payment and breakdown.

Input price of home loan.

You will then need to input the home loan amount (the amount after subtracting the funds you’re using for down payment). This may very well be an estimate at this point of the process, so input your best guess.

Input down payment amount.

Next, input the amount you plan on putting down as a down payment. This will automatically inform you of the percentage you will be using as a down payment compared to the total cost of the home.

Choose your desired mortgage term.

You will need to state the term of your mortgage. The options are 5-year, 10-year, 15-year, 20-year, 25-year, or 30-year.

Provide financial information.

Provide financial information such as the interest rate you assume you will receive, annual taxes, annual insurance, monthly HOA, and any other expenses. These will all be considered when calculating the final output as accurately as possible.

Input location.

Finally, you will need to provide your state and the county of the property you plan to buy. Each state and county have different mortgage terms which may impact your monthly payment breakdown.

Once everything is input into the calculator, you will press CALCULATE! In the Direct Mortgage Loans calculator, a lovely graphic will be provided along with detailed information. This will show your monthly payment with a detailed breakdown of taxes, principal, interest, and additional expenses. You will immediately have the option to get pre-qualified today if you are ready to take the next steps!

Calculator Options

At Direct Mortgage Loans, we have many free financial mortgage calculators to meet your needs. Our calculators are:

Mortgage calculators are great self-accessible tools to inform you of the financial aspects of home buying. When you are confident and ready to move forward in the process, make sure to work with a loan officer to validate your estimates!