Determine the loan amount: home price minus down payment
Convert the annual interest rate to a monthly rate: annual rate ÷ 12 ÷ 100
Determine the loan term in months: years × 12
Use the mortgage payment formula: M = P[r(1+r)^n] / [(1+r)^n – 1]
M = monthly mortgage payment
P = loan amount
r = monthly interest rate
n = number of monthly payments
Add monthly property taxes, homeowners insurance, and HOA fees if needed
Use a mortgage calculator or spreadsheet to verify the result