monthly payments......... (PMI, loan, interest rate, property tax)

[adio]

how do u calculate monthly payments for a mortgage? i use to watch alot of hgtv shows about people buying their 1st house/condo and at the end, the people would say what they monthly mortgage payment would be. so what i stared doing was this:
cost of house= 125,000
30 year mortage= 250,000 <----- this is with interest, pmi, taxes.... something i made "kinda" calculated
250,000/30 years= $8333.33
$8333.33/12 months of payments= $694.44 a month for your mortgage.

i know i'm doing this wrong, but am i really far off? when i buy a house, i would like to keep my monthly payments between $400 and $725

[snowdenscold]

I'm kind of confused as to what you're saying and asking.

Technically, the "mortgage payment" is just the principal and interest portion. However, you may commonly hear of a "monthly payment" as referring to PITI - Principal, Interest, Taxes, Insurance. PMI would be more on top of that if you have it. Some people factor their condo fees or HOA payment in as well.

The P+I portion of your payment is determined from your loan amount, your interest rate, and your payback period. The easiest way to find it is to use a mortgage calculator, like:
Mortgage Calculator - Bankrate.com

Otherwise, you can use the formula:
P+I = L[c(1 + c)n]/[(1 + c)n - 1]

Where L = loan amount, c = monthly interest rate (so if you had a 5% rate, it's .05/12), n = # months on loan term.



Once you know P+I, you can figure out the monthly payment by adding on your monthly tax bill (yearly property tax % 12), monthly insurance (yearly HO insurance % 12), and the rest.

[Elke Mariotti]

Just go on Mortgage Rates Credit Cards Refinance Home CD Rates by Bankrate.com and click on the Mortgage Payment Calculator link. Follow instructions, and you will get your answer! It'll get you Principal and Interest payments; RE taxes and insurance vary, so you have to add them yourself.

Ooops - duplication, "snowdenscold" already gave you the link!

[snowdenscold]

Obviously those n's should be ^n in the formula above. They're meant to be exponents.