Simulate Home Loan
Simulate Home Loan
Monthly Payment
1,107 $
Property Value
200,000 $
Total Cost
65,680 $
Loan Cost
53,680 $
Insurance Cost
12,000 $
Loan Value: 200,000 $
| Years | Monthly Payment | Total Cost |
|---|---|---|
| 5 | 3,597 $ | 15,820 $ |
| 10 | 1,933 $ | 31,960 $ |
| 15 | 1,381 $ | 48,580 $ |
| 20 | 1,107 $ | 65,680 $ |
| 25 | 944 $ | 83,200 $ |
Home Loan Calculator for Home Buyers (Singapore - 2023)
Obtain an estimate of your mortgage payments with our complimentary online mortgage calculator, designed to assist you in navigating the financial aspects of home financing. A mortgage loan or home loan is a type of loan utilised to purchase a home, and our calculator will aid you in understanding the costs involved.
Loan Amount: Enter the total amount you intend to borrow for your dream home, typically the purchase price minus your down payment.
Interest Rate: Provide the annual mortgage interest rate, which influences your monthly mortgage payments and the overall cost of homeownership.
Loan Term: Select the number of years you will take to repay your mortgage, commonly 15, 20, or 25 years.
Homeowners Insurance: Do not forget to account for the cost of home insurance, often escrowed and paid alongside your mortgage.
How does our Home Loan Calculator Work?
Our calculator employs a simplified formula to compute your mortgage:
(PV * (1 + (r/12))^(nt)) + PMT*((1 + (r/12))^(nt) - 1)/(r/12) = 0
Where:
- PV is the loan amount,
- PMT is your monthly payment,
- r is the monthly interest rate (annual rate divided by 12 and converted to a decimal),
- n is the total number of monthly payments (loan term in years multiplied by 12).
We have also included the home insurance rate in our calculation.
Borrowing Capacity: How to Determine Yours
Understanding your borrowing capacity is essential for securing the best mortgage deal. Here are the key factors to consider:
- Interest Rate of Mortgage Credit: The rate significantly impacts your monthly payments and overall loan cost.
- Cost of Borrower Insurance: This insurance is often required and affects your total loan expenses.
- Desired Loan Term: The duration of your loan influences your monthly payments and interest paid over time.
- Monthly Payment Goals: Determine a comfortable monthly payment to ensure you can manage your finances effectively.
By evaluating these elements, you can accurately estimate your borrowing capacity and make informed decisions regarding your mortgage.
Tips for Using Our Home Loan Calculator
- Get pre-approved: Prior to commencing your home search, obtain pre-approval for a mortgage to understand how much you can afford.
- Consider all costs: In addition to your monthly mortgage payment, account for other costs such as property taxes, insurance, and maintenance.
- Adjust your inputs: Experiment with different loan terms, interest rates, and down payments to observe how they affect your monthly payment.
- Review and refine: Utilise our calculator to refine your budget and make informed decisions regarding your home purchase.
Understanding Your Mortgage Options
- Fixed-rate vs. adjustable-rate: Fixed-rate mortgages offer stable payments, while adjustable-rate mortgages may provide lower initial rates but can increase over time.
- Government-backed loans: FHA, VA, and USDA loans offer benefits such as lower down payments and more lenient credit requirements.
- Jumbo loans: If you need to borrow more than conventional loan limits, consider a jumbo loan.
Would you like to learn more about mortgage calculations? Explore the Mortgage Calculator Wiki Page.
By utilising our mortgage calculator and considering these factors, you will be better equipped to make informed decisions regarding your home purchase and mortgage financing.