When I use a mortgage payment calculator, what will my mortgage payments include?

When the lender calculates the standards for qualifying a borrwer for a loan, the monthly mortgage payment they care about will include the principal, interest, taxes and insurance.  Each monthly mortgage payment goes toward: the principal, which is the total outstanding balance of the loan not inclduing interest charges, interest, which is the cost of borrowing money, taxes, which is the annual amount of real estate taxes divided by 12,  and insurance, which can be the annual homeowners insurance divided by 12 or the monthly private mortgage insurance if it was required.  The mortgage payment calculator will always return the principal and interest monthly payment.  If a comprehensive mortgage payment calculator is used, the monthly payment will calculate the principal, interest, taxes and insurance based on the users input.

This entry was posted on Wednesday, December 10th, 2008 at 4:51 pm and is filed under Mortgage FAQs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.