Knowing how to calculate your mortgage cost per thousand is a useful skill when buying a home. This is because it is one of the most beneficial tools for understanding the full cost of taking out a home loan. Furthermore, it allows you to make more informed decisions regarding other mortgage options that might be available to you. Given the ease with which this calculation is done, there is no excuse for not knowing how to perform it.
Gather the necessary information. You need to know the principle balance of the loan, the loan's interest rate and the length of the loan expressed in years. If you want to factor in additional expenses, such as origination fees and closing costs, gather this information, as well. However, this supplementary data is not required.
Access the mortgage calculator linked in the Resource section below. The "Payment Per Thousand Calculator" web page appears.
Enter the information gathered in Step 1 into the appropriate text fields in the calculator. Enter zeros into any text fields that you are not using.
Click on "Calculate." Your mortgage costs are automatically displayed on the screen. The cost per thousand is provided in three formats: monthly payment per thousand, yearly payment per thousand and lifetime payment per thousand.
You can also use this calculator to determine the total monthly payments of the loan.
Tips and warnings
- You can also use this calculator to determine the total monthly payments of the loan.