Ask your lender about 10-, 20- or 25-year fixed-term options, or ARM programs. → Principal and interest calculations are only for 30- and 15-year fixed-rate terms. Although it’s not required, most homeowners prefer the convenience of having all four components included in their monthly payments.Ī few things are worth noting about the PITI calculations included in our mortgage calculator: The acronym “PITI” is short for principal, interest, taxes and insurance - the four elements that make up your total mortgage payment. What our mortgage calculator tells you about your PITI The table below shows what this tradeoff would look like for three different repayment terms for a $320,000 loan at today’s interest rates. A lengthier mortgage term stretches out your debt, resulting in lower monthly payments, but mortgage interest rates for a 10-year home loan will typically be lower than for a 15-year home loan, which in turn will carry lower rates than a 30-year home loan.Įxample Monthly Payment Comparison for 10-, 15- and 30-year Loan Terms The reason these numbers help us comparison shop is that savings in the short term - a low monthly payment - usually indicate a higher total cost over the life of a mortgage. The total dollar amount you’ll spend for all the expenses included in your monthly payment over the life of your mortgage.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |