Question 1

How is monthly mortgage payment calculated?

Accepted Answer

Monthly mortgage payment is calculated using the loan amount, interest rate, and loan term. The formula includes principal and interest (P&I), plus property taxes, insurance, and PMI if applicable.

Question 2

What is included in the total monthly payment?

Accepted Answer

Total monthly payment typically includes Principal & Interest (P&I), Property Taxes, Home Insurance, and Private Mortgage Insurance (PMI) if your down payment is less than 20%.

Question 3

How does down payment affect my mortgage?

Accepted Answer

A larger down payment reduces your loan amount, monthly payments, and total interest paid. It may also eliminate the need for PMI if you put down 20% or more.