hilton head mortgage loan calculatorA Mortgage Loan Calculator will show you your monthly payment and the amortization of the principal and interest. In the process called amortization your initial monthly payments are almost all just interest payments. As the loan matures, a larger and larger percentage of the payment is applied toward the principal.

This Mortgage Loan Calculator can be used to figure out monthly payments, based on the home’s sale price, the term of the loan desired, your down payment percentage, and the loan’s interest rate. It automatically factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.

The principal is the part of your monthly loan payment that reduces the balance, and the interest is the fee charged for borrowing the money. Several factors affect your mortgage rate including the amount of your loan and down payment, your credit report quality and income levels, desired mortgage payment and closing costs, and your current financial situation. Mortgage rates rise and fall along with Wall Street securities and reflect the overall direction of interest rates.

The property taxes are levied by your community and are generally based on the value of your home. Lenders won’t close on your loan until you have home and personal property insurance against fire, theft, bad weather, alien attack, and other causes. The lender usually collects the taxes and insurance in advance and places the money in an escrow fund until the bill is due.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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