United States mortgage calculator and US mortgage calculation formula

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US mortgage calculator is quite a useful tool when you are looking forward to take mortgage. But before you go ahead and directly calculate mortgage let us first understand a few things such as what is mortgage or mortgage loan. You also know what are uses of mortgage calculator besides knowing what is formula used to calculate mortgage.

What is meaning of Mortgage?

Mortgage in simple terms means that it is legal agreement according to which bank lends money. Additionally a building society or similar institutions can also lend money. Lenders give money on interest in exchange of taking title of property. Later it becomes task of debtor to clear dues so that they can own this property again. Owning property is possible only when complete payment is done.

US Mortgage Calculator

Many people opt for mortgage loan so that they can purchase property or house. In case you are also looking for mortgage and are not sure if you are eligible to take this mortgage then United States mortgage calculator will be of help. To know correct answer to your questions you enter right details in the fields provided on this page.

Also know how to calculate Sales Tax in United States in another article.

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Why use US mortgage calculator?

As you can see below this US mortgage calculator uses a simple technique which requires you to enter a few values so that you get the answers quickly. Moreover this calculator makes you understand whether you are eligible for this loan or not. Here you enter mortgage amount as in how much money you would be borrowing.

Based on this amount and rate of interest you learn as to what will be home mortgage payment. You will have an understanding of monthly mortgage payments as well. Hence mortgage calculator for U. S. comes as over – all package to your queries on mortgage in the United States.

Steps to use US mortgage calculator

  • You first enter mortgage amount in first box
  • Next specify mortgage term in number of years (these are the number of years in which you clear mortgage payments)
  • And finally you enter rate of interest in last field
  • When you indicate all these details then you have monthly mortgage payment value, total interest that you pay and total payment particulars on screen

Thus in a very simple manner you know total mortgage amount. You even can calculate US mortgage manually. And if you wish to know how then you keep scrolling this page.

What is formula to calculate mortgage manually?

\(M = P.\frac{r (1+r)^{{n}}}{ (1+r)^{{n}}-1}\)

In this formula of calculation of mortgage, P is principal, r = rate, n = number of payments and M is the monthly payment.

Apart from this you may even check how to calculate Provincial Sales Tax in Canada using Canadian Provincial Sales Tax calculator.