How to calculate your mortgage payment

Determine your loan amount (principal): This is the total amount of money you borrow to buy a home. For example, if you are purchasing a $300,000 home and making a down payment of $60,000, your loan amount (principal) will be $240,000.

Determine your interest rate: Your interest rate is the annual percentage rate (APR) charged by your lender for the loan. For example, if your interest rate is 3.5%, your monthly interest rate will be 0.0035 (3.5% divided by 12 months).

Determine your loan term: Your loan term is the length of time you have to repay the loan. For example, if you have a 30-year mortgage, your loan term will be 360 months (30 years x 12 months).

Calculate your monthly mortgage payment: You can use a mortgage payment calculator or the following formula to calculate your monthly mortgage payment:

P = L[c(1 + c)^n]/[(1 + c)^n - 1]

Where:

P = monthly mortgage payment

L = loan amount (principal)

c = monthly interest rate

n = loan term (number of months)

For example, if you have a $240,000 loan amount, a 3.5% interest rate, and a 30-year loan term, your monthly mortgage payment would be:

P = 240,000[0.0035(1 + 0.0035)^360]/[(1 + 0.0035)^360 - 1]

P = $1,078.24

So your monthly mortgage payment would be $1,078.24. Keep in mind that this is just an estimate, and your actual mortgage payment may vary depending on additional fees or costs associated with your loan.