Question on mortgage/interest rates?

Question

How do you calculate the monthly payment (average) for say a 20 year mortgage of $120,000?

Also, what is the average interest on such a loan?

I'm in Wisconsin if that makes a difference.

Thanks!

Answer 1

Calculating manually is time consuming. It's best to use a calculator. See the link below.

Interest rates change frequently. Check the current rates with the lending institutions that are available to you and get the best deal you can. Mortgage rates are competitive, so shop around.

Answer 2

Yes.

Answer 3

I was going to suggest the same link the first guy suggested. My husband and I used that same site when we were house shopping. I'm not quite sure what the rates are right now, it also depends on your credit score usually. Two years ago my husband and I got 6.5% when we purchased our house, so I'm not sure if they are lower, higher or about the same. I know they were lowering rates for awhile, so you might get better than that. Also the monthly payment will depend on if you include your taxes and homeowners insurance in the loan, so if you have those numbers (or estimates) available, that will help determine your payment also. For $120,000 you would probably be around $1000-1100 or so (just a rough estimate)

Answer 4

To my knowledge interest rates aren’t based on the amount of your loan. They’re based on your individual credit history & income.

Here’s a mortgage calculator: http://bankrate.com/brm/mortgage-calcula...  though keep in mind that it does not include the property tax & insurance a loan payment will typically include. If you want an accurate payment amount & to find out what interest rate you can get, sit down with a lender.