What's My Mortgage Payment?

We receive that question all the time from our customers at Home Partners Credit Corp. and the correct answer to that question will ultimately depend on you. We know your goal is to have the lowest mortgage payment possible – all our customers do! So it is important for you to understand the factors that you control so you can, in fact, have the lowest payment possible.

The Easy Part - Mortgage Calculation
Let’s begin with a quick overview of the mathematical calculation of a mortgage payment which is simply based on the following three variables:

• The Mortgage Amount (how much you borrow)
• The term of your loan (the number of years you will be repaying the loan)
• The interest rate on your loan (the percentage rate charged by the lender)

The math to calculate a mortgage payment is the easy part and, in fact, the table we’ve provided below shows the monthly mortgage payment based on combinations of the above three variables. For example, the monthly payment on a $150,000, 30 year mortgage is $998 at 7% and $1,207 at 9% - that’s a $209 per month difference and $75,240 over the life of the mortgage. We are confident that you’d rather be paying $998 per month over 30 years instead of $1,207! So how can you ensure that your mortgage payment will be as low as possible? That’s the harder part of the equation and it’s important that you understand the key factors you can absolutely control to ensure your mortgage payments are as low as possible.

Click here to read the Five Factors that Determine Your Monthly Payment.