Comparing lending options? Use this bankrates mortgage calculator to estimate your monthly payments based on current market interest rates, loan amounts, and typical lender terms.
Bankrates Mortgage Calculator
Bankrates Mortgage Calculator Formula
This calculator uses the standard amortization formula to determine your monthly principal and interest payment, providing a baseline for comparing rates from different lenders:
Variables
- M: Monthly Principal & Interest Payment.
- P: Principal Loan Amount (Home Price minus Down Payment).
- i: Monthly Interest Rate (Annual Rate / 12).
- n: Total Number of Payments (Years × 12).
Related Calculators
- Amortization Schedule Calculator
- Affordability Calculator
- Refinance Calculator
- Bi-Weekly Payment Calculator
What is Bankrates Mortgage Calculator?
A bankrates mortgage calculator is a tool designed for users researching loan options on financial comparison sites. It helps you estimate the monthly cost of borrowing based on current market conditions.
Bankrate is a well-known source for mortgage rate data. While this calculator provides the P&I payment, remember that your “real” monthly cost will likely include property taxes, homeowners insurance, and possibly private mortgage insurance (PMI) if your down payment is less than 20%.
How to Calculate Bankrates Mortgage Calculator (Example)
Let’s calculate a typical scenario for a homebuyer:
- Home Price: $350,000.
- Down Payment: 20% ($70,000).
- Loan Principal (P): $280,000.
- Interest Rate (r): 7.0% on a 30-year term.
- Monthly Rate (i): 0.07 / 12 = 0.005833.
- Result: The estimated monthly P&I payment is approximately $1,862.85.
Frequently Asked Questions (FAQ)
Mortgage rates change daily based on the bond market. Sites like Bankrate publish daily averages for 30-year fixed, 15-year fixed, and ARM loans based on surveys of major lenders.
This specific calculator estimates Principal and Interest. Private Mortgage Insurance (PMI) is an additional cost usually required if you put down less than 20%, which you should add to this estimate.
Yes. For an Adjustable Rate Mortgage (ARM), enter the initial interest rate. Note that this calculator assumes the rate stays fixed, whereas an ARM rate will adjust after the initial 5, 7, or 10-year period.
An amortization schedule shows how every monthly payment is split between interest and principal over the life of the loan. In the early years, most of your payment goes to interest.