Welcome to the mortgage calculator on ostermiller.org. Please enter your loan information
in the green box. Additional help about each item will appear in this box.
The principal is the amount that is borrowed. The mortgage loan
if for the entire principal. Up front costs such as downpayment
and closing costs are not part of the principal.
The interest rate percentage of the remaining principal that is paid each year.
The term of a mortgage is the number of years that it takes to pay back all the borrowed money.
A fixed rate mortgage has the same interest rate for the life of the loan.
With an adjustable rate mortgage (ARM) the interest rate (and therefore the minimum payment)
will increase after a specified time period.
Adjustable rate mortgages typically have a lower initial interest rate. They can be worthwhile
if you expect to sell your house or refinance before the interest rate increases.
Extra payments can significantly reduce the amount of time it takes to pay off a mortgage.
In addition, extra payments reduce the principal more quickly making the
total amount of interest payed during the life of the loan much less.
Your mortgage has been calculated below. Feel free to adjust the parameters and calculate again.
As inflation goes up, the value of money goes down. When you have borrowed money, you would like inflation to go up because it makes it easier to earn the money to pay off your loan. Mortgage rates are always set above the inflation rate so that the lender can make money. Typically, yearly inflation rates are between 2% and 3% in the United States.