Looking To Remortgage Calculator

Mortgage Payment Formula:

\[ PMT = P \times \frac{r}{12} \times \frac{(1 + \frac{r}{12})^{12 \times t}}{(1 + \frac{r}{12})^{12 \times t} - 1} \]

Monthly Payment (PMT):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Mortgage Payment Calculator?

The Mortgage Payment Calculator helps you determine your monthly mortgage payment when looking to remortgage. It uses the standard amortization formula to calculate the fixed monthly payment required to pay off a mortgage over a specified term.

2. How Does the Calculator Work?

The calculator uses the mortgage payment formula:

\[ PMT = P \times \frac{r}{12} \times \frac{(1 + \frac{r}{12})^{12 \times t}}{(1 + \frac{r}{12})^{12 \times t} - 1} \]

Where:

$ PMT $ — Monthly payment ($)
$ P $ — Loan principal ($)
$ r $ — Annual interest rate (decimal)
$ t $ — Loan term in years

Explanation: This formula calculates the fixed monthly payment required to fully amortize a loan over the specified term, accounting for both principal and interest.

3. Importance of Mortgage Payment Calculation

Details: Accurate mortgage payment calculation is crucial for budgeting, comparing remortgage options, and ensuring you can comfortably afford your monthly payments when switching mortgage providers.

4. Using the Calculator

Tips: Enter the loan amount in dollars, annual interest rate as a decimal (e.g., 0.05 for 5%), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between remortgaging and refinancing?
A: Remortgaging typically refers to switching your mortgage to a new lender, while refinancing can include changing terms with your current lender. Both involve recalculating payments.

Q2: Should I include additional costs in the principal?
A: For accurate calculations, include any fees or closing costs that will be added to your loan amount when remortgaging.

Q3: How does the interest rate affect my payment?
A: Higher interest rates significantly increase monthly payments. Even a 0.5% difference can have a substantial impact over the loan term.

Q4: What if I want to make extra payments?
A: This calculator shows the standard payment. Extra payments would reduce the principal faster and shorten the loan term.

Q5: Are there other costs besides the principal and interest?
A: Yes, your total monthly payment may also include property taxes, insurance, and PMI, which are not included in this calculation.