The short answer is to simply use the Mortgage Payment Calculator
to instantly determine what your approximate payment will be each month.
A mortgage payment is largely comprised of principal and interest and often
includes property taxes and insurance premiums placed in escrow for later
disbursement to the tax collector and insurer. The principal and interest
portion is based on loan amount, down payment, interest rate, and loan term.
Larger down payments decrease the loan amount and its payments. With a down
payment of 20%, you can avoid private mortgage insurance (PMI) altogether but
still must pay property tax and other required insurance. Lower rates and longer
terms reduce monthly payments. Short-term loans allow you to pay off the loan
sooner at less overall expense but with higher monthly payments.
