Use the formula: Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n – 1]
P = loan principal amount
r = monthly interest rate
n = total number of monthly payments
Convert annual interest rate to monthly rate by dividing by 12 and by 100
Multiply the loan amount by the mortgage factor from the formula
Include principal and interest only
Add property taxes, homeowners insurance, and mortgage insurance separately if needed
Use an online mortgage calculator for a quick estimate
Check the loan term to determine the total number of payments
Round the final monthly payment to the nearest cent