1. What is a Mortgage Repayment Calculator with Deposit?

Definition: This calculator estimates the monthly mortgage payment based on the principal amount, deposit, interest rate, and loan term.

Purpose: It helps home buyers and property investors understand their potential mortgage obligations when making a property purchase with a deposit.

2. How Does the Calculator Work?

The calculator uses the standard mortgage payment formula:

Where:

• \( \text{Payment} \) — Monthly payment ($)
• \( P \) — Principal amount ($)
• \( D \) — Deposit amount ($)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)

Explanation: The formula calculates the fixed monthly payment required to fully repay a loan over its term, accounting for compound interest.

3. Importance of Mortgage Calculation

Details: Accurate mortgage calculations help borrowers understand affordability, compare loan options, and plan their finances effectively.

4. Using the Calculator

Tips: Enter the property price as principal, your deposit amount, the annual interest rate, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does the deposit affect my monthly payment?
A: A larger deposit reduces the loan amount (P-D), which directly lowers your monthly payments.

Q2: Is the interest rate compounded monthly?
A: Yes, mortgage interest is typically compounded monthly, which this calculator accounts for.

Q3: Does this include property taxes and insurance?
A: No, this calculates only the principal and interest payment. Additional costs would increase your total monthly payment.

Q4: What happens if I enter a deposit larger than the principal?
A: The calculator will show $0 monthly payment as no loan would be needed.

Q5: How accurate is this calculator?
A: It provides a close estimate, but actual payments may vary slightly based on lender-specific calculations and rounding methods.