The Nh Mortgage Calculator is a useful tool that helps you determine the monthly mortgage payment for a loan. This tool is essential for anyone considering taking out a mortgage, as it provides a clear understanding of how much they will need to pay each month.

## Purpose and Functionality

The main purpose of the Nh Mortgage Calculator is to calculate the monthly mortgage payment based on the principal loan amount, annual interest rate, and loan term. By inputting these values, the calculator uses a standard formula to compute the monthly payment, making it easier for users to plan their finances.

### Formula

The formula to calculate the monthly mortgage payment (M) is:

M = P * r * (1 + r)^n / ((1 + r)^n – 1)

Where:

- P = Principal loan amount
- r = Monthly interest rate (annual interest rate divided by 12)
- n = Number of monthly payments (loan term in years multiplied by 12)

### Inputs

**Principal loan amount (P):**The total amount of the mortgage loan.**Annual interest rate (R):**The yearly interest rate of the loan.**Loan term (years) (T):**The duration of the loan in years.

### Calculations

**Convert the annual interest rate to a monthly interest rate:**r = R / (12 * 100)**Calculate the number of monthly payments:**n = T * 12**Plug the values into the mortgage payment formula to find the monthly payment:**M = P * r * (1 + r)^n / ((1 + r)^n – 1)

### Example

Let’s consider an example with the following inputs:

**Principal loan amount (P):**$200,000**Annual interest rate (R):**5%**Loan term (years) (T):**30 years

**Convert the annual interest rate to a monthly interest rate:**r = 5 / (12 * 100) = 0.004167**Calculate the number of monthly payments:**n = 30 * 12 = 360**Calculate the monthly mortgage payment:**M = 200,000 * 0.004167 * (1 + 0.004167)^360 / ((1 + 0.004167)^360 – 1)

Using the formula: M = 200,000 * 0.004167 * (1.004167)^360 / ((1.004167)^360 – 1) M = 200,000 * 0.004167 * 4.46774 / (4.46774 – 1) M = 200,000 * 0.004167 * 4.46774 / 3.46774 M = 200,000 * 0.004167 * 1.28837 M ≈ 1073.64

So, the monthly mortgage payment would be approximately $1073.64.

## Relevant Information Table

Input | Value |
---|---|

Principal loan amount (P) | $200,000 |

Annual interest rate (R) | 5% |

Loan term (years) (T) | 30 |

Monthly interest rate (r) | 0.004167 |

Number of payments (n) | 360 |

Monthly mortgage payment (M) | $1073.64 |

## Conclusion

The Nh Mortgage Calculator is a valuable tool for anyone planning to take out a mortgage. It simplifies the complex calculations needed to determine monthly payments, helping users make informed financial decisions. By understanding the inputs and the formula, users can easily estimate their monthly mortgage payments and plan their budgets accordingly.