To get the number of monthly payments you're expected to make, multiply the number of years by 12 (number of months in a year).Ī 30-year mortgage would require 360 monthly payments, while a 15-year mortgage would require exactly half that number of monthly payments, or 180. The most common term for a fixed-rate mortgage is 30 years or 15 years. For example, if the annual interest rate is 4%, the monthly interest rate would be 0.33% (0.04/12 = 0.0033). If you want to do the monthly mortgage payment calculation by hand, you'll need the monthly interest rate - just divide the annual interest rate by 12 (the number of months in a year).

Lenders provide an annual interest rate for mortgages. Typically, a buyer with a high credit score, high down payment, and low debt-to-income ratio will secure a lower interest rate - the risk of loaning that person money is lower than it would be for someone with a less stable financial situation. The interest rate is essentially the fee a bank charges you to borrow money, expressed as a percentage.