Mortgage Calculator
Use our mortgage calculator to get an estimate of your monthly mortgage payment. Simply provide some basic information, and we'll help you crunch the numbers. Start by entering the required details below.
Your Mortgage:
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The mortgage calculator provided is for informational purposes only and should not be considered as financial advice. The calculated results may not reflect the actual terms and conditions of a mortgage loan. It is important to consult with a qualified financial professional or mortgage lender before making any financial decisions or commitments.
The accuracy of the calculated results may vary depending on the input values and other factors. The use of this calculator is at your own risk, and we disclaim any liability for any damages or losses arising from its use. Always carefully review and understand the terms and conditions of any mortgage loan before proceeding.
Understanding Mortgages
What is a mortgage?
A mortgage is a financial arrangement with a bank or financial institution where they provide you with funds to purchase a home. Instead of paying the full cost of the home upfront, the lender covers the initial payment on your behalf. In return, you commit to repaying the borrowed amount, along with interest, within a predetermined timeframe.
What is a downpayment?
A down payment is an upfront payment made during the closing process of a home purchase. Its purpose is to reduce the overall amount of the loan. By making a down payment, you demonstrate your financial investment and ownership interest in the property.
How much should I put down?
While putting down a down payment of 20% or more can offer advantages such as better interest rates and wider loan choices, it's not mandatory to purchase a house. Numerous low-down-payment options are accessible for home buyers. It is possible to buy a home with as little as a 3% down payment.
What is a loan term?
The loan term refers to the duration during which you repay the loan. The 30-year term is widely favored and commonly used. However, the specific loan terms available to you will depend on factors such as your financial circumstances and the type of loan you opt for.
Should I choose a long or short loan term?
The choice of loan term depends on your budget and objectives. Opting for a shorter term enables faster loan repayment, reduces the amount of interest paid, and accelerates equity building. However, it also results in higher monthly payments. On the other hand, a longer term lowers the monthly payment since the loan is spread over a longer period. However, this means paying more in interest over time. Ultimately, the decision on loan term should be based on balancing your financial capabilities and long-term goals.
What’s an interest rate?
Interest is the cost charged by your mortgage company for borrowing money. It is calculated as a percentage of the remaining loan amount and is commonly referred to as the interest rate. The interest rate determines the portion of your monthly payment that goes towards interest expenses. By repaying the loan over time, you gradually reduce the principal amount owed and subsequently decrease the interest charges.
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SouthFork Funding gives you the freedom to have flexibility on your home loan options. Learn more about why we offer the lowest industry rates.
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