How to calculate loan amount when I know the monthly payment?
Sometimes borrowers want to know how to calculate loan amount based on how much they would like to pay monthly. It will be enough to know how much your desired monthly payment is, at what rate you will borrow the mortgage loan, and the years of the loan.
Calculating the Loan Amount Knowing the Monthly Payment
For example, if you want your monthly principal and interest payment to be $1600, and you want a loan at 6.375% for 240 months (20 years) your eligible loan amount will be around $217,000 according to a web calculator.
Have in mind that you will be paying PMI, homeowners insurance, and taxes to properly estimate how much loan you can take.
Lenders are likely to calculate the loan amount you are eligible for when underwriting your application. They'll be using front-end and DTI ratio to make the assessment.
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calculate loan amount based on monthly payment
Are you looking to see just how much your that home mortgage loan will cost you on a monthly basis? This mortgage loan monthly payment calculator will allow you to enter the price of the home you're considering, estimated interest rate, and length of the home mortgage loan and then calculate your estimated monthly payment based on the information you provided.
Based on your loan amount, interest rate, and loan term, this monthly payment calculator will calculate your monthly payment and total interest paid over the life of the loan.