Mortgage Loan Calculator

Mortgage Calculator Help

You can calculate the mortgage loan amount from the price of the real estate by providing the down payment percentage.

If you know the mortgage amount you can afford and the cash down payment percentage required, you can calculate the affordable real estate price.

Or if you know the price of the real estate and the loan amout and enter "0" for the down payment percentage, the calculator will calculate the down payment amount and percentage.

Points, Annual Property Taxes, Annual Insurance and Private Mortgage Ins. (PMI) are all optional. If you enter values, the periodic portion of each will be calculated and shown on the schedule. Property taxes and insurance are combined under escrow.

If a borrower does not have cash to cover at least 20% of the purchase price, some lenders will require the borrower to purchase private mortgage insurance (PMI) to cover against a possible default. Premiums are typically 0.5% to 2.0% of the original loan amount. The borrower can drop the insurance coverage once the mortgage balance is less than 80% of the original purchase price. The calculator handles this automatically. (There may be other conditions as well under which the lender will no longer require PMI. One such case might be apprciation of the real estate.)

Points are charges that are normally due at closing. Borrowers (normally only in USA) may select to pay a lender "points" up front in exchange for a lower interest rate. Points are expressed in percent and are calculated on the amount borrowed. 3 points on a $200,000 mortgage equals $6,000. If the user enters points, this calculator includes their value in the summary and as part of the total payment at loan origination on the payment schedule.

The term (duration) of the loan is expressed as a number of months.

60 months = 5 years
120 months = 10 years
180 months = 15 years
240 months = 20 years
360 months = 30 years

Need more options including the ability to solve for other unknowns, change payment / compounding frequency and the ability to print an amortization schedule? Please visit, https://financial-calculators.com/mortgage-calculator

What Is A Mortgage? Loan Basics For Beginners

FAQ SECTION

What is a Mortgage calculator and its benefits?

Mortgage calculators are the type of calculators that let you determine the monthly mortgage. You have to input the data into the calculator and it will give you all the necessary information about your mortgage. A Mortgage calculator has many benefits. You can decide the price range that you can afford in terms of monthly payments. Tweak the numbers of the monthly mortgage amount and you can know the range in which you can shop comfortably. Alter the numbers of the total loan amount and you can see the amount of down payment that you can afford to pay immediately. You can look to what amount you can avoid a PMI and save every month. It also helps you budget efficiently and gives you a structured view of how your future in terms of income and expenses will look like. The data it displays enables you to look at all the aspects and judge what you can afford and what you cannot afford. If you are confused about the loan tenure then just put in the number and have yourself the difference in loan amount that you will have to pay and then it is up to you to decide the tenure of the
loan.

How to use a Mortgage Calculator?

First, you will have to enter the details that are being asked you to input in the calculator. The data that is required to input include, the price of the home, monthly down payment, the tenure of the loan, and the interest rate that is being offered to you by the bank. Once you input all of the data asked the calculator will display all the information that you want. It will display the loan amount, The total repayment amount at the end of the tenure that you will have to pay, the amount of interest that you will be paying on the principal amount, and lastly the monthly EMI. The data displayed is precise and you can alter the input to get yourself a comfortable monthly EMI and get the loan done. The Mortgage calculator is reliable and a very efficient way to plan your finances.

What things to compare while applying for a mortgage

While comparing the mortgage no doubt the rate of interest is a major factor but getting a mortgage generally invites some closing costs and other types of fees. You should look for some of them in particular like the application fee and the credit report fee. Then after considering these both look out for appraisal fees and underwriting fees. When you look at the loan estimate make sure to read it carefully as it has the breakdown of all the payments you need to make. Some loans also include different types of government fees and property taxes. You should read all of the points carefully and go through the entire estimate to make sure that there are no hidden charges in the mortgage. While looking at the estimate keep an eye out for some fees that may sound unfamiliar like Balloon payment, prepayment penalty, private mortgage insurance, cash to close, etc. If you see these types of charges do proper research before accepting them. Looking at these might seem beneficial but generally, that is not the case and you end up paying much more than the desired amount.

What fees and charges are involved in mortgages?

The amount and number of fees and charges depend on your location while purchasing a property in the UAE. The charges vary in Dubai, Abu Dhabi, and other places in the Emirates. Generally, the taxes and charges that are charged while buying a property are Land Department Fee that is around 4% of the purchase price and an additional amount of AED 580 is charged. Then there comes the agent fee that is 2% of the entire purchase amount. The mortgage registration fee is around 0.25% and the additional cost of AED 290. Then there comes the Bank arrangement fee varies around 0-1.5 % of the loan amount. The trustee fee is approximately AED 4000 and at last, comes the valuation fee that varies in the range AED 2500-AED 3000. All of the charges and fees mentioned here are exclusive of taxes. There is a possibility that you can cover some of these charges with the mortgages.

How to apply for mortgages in UAE?

When you are applying for a mortgage, you need to have a certain set of documents. The documents include a copy of your passport, proof of residence in UAE, proof of current address, proof of salary, bank statements, and other financial documents. You should have at least these documents before you think of applying for mortgages. Now, let us have a look at the process. The first step includes deciding that whether you should go to a bank directly or hire a broker first. Then you have to do detailed research on the type of mortgage that best suits you and your circumstances. Then you should look forward to obtaining an agreement in principle from the bank and ask for a letter for the proof of the same. Then you have to find a suitable property within your budget and make an offer followed by the down payment for the property and agreement on the completion date. On the completion date, the lender will release the funds to the seller.