1. What is the DCU Mortgage Calculator?

The DCU Mortgage Calculator helps you estimate your monthly mortgage payment based on DCU's specific rates. It uses the standard amortization formula to calculate your fixed monthly payment over the life of your loan.

2. How Does the Calculator Work?

The calculator uses the mortgage payment formula:

Where:

• \( Principal \) — Loan amount in dollars
• \( Rate \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in months)

Explanation: This formula calculates the fixed monthly payment required to fully amortize a loan over its term, accounting for both principal and interest.

3. Understanding Mortgage Payments

Details: Your monthly mortgage payment typically includes principal, interest, and may include property taxes and insurance. This calculator focuses on principal and interest only.

4. Using the Calculator

Tips: Enter the loan amount in dollars, the monthly interest rate (DCU's current rate divided by 12), and the loan term in months (e.g., 360 for 30 years).

5. Frequently Asked Questions (FAQ)

Q1: How do I get DCU's current mortgage rates?
A: Check DCU's official website or contact their mortgage department for the most up-to-date rates.

Q2: Why is the rate entered as a monthly percentage?
A: Mortgage payments are calculated monthly, so we need the monthly rate (annual rate ÷ 12).

Q3: Does this include property taxes and insurance?
A: No, this calculates principal and interest only. Your actual payment may be higher if escrowing taxes and insurance.

Q4: How accurate is this calculator?
A: It provides a good estimate of principal and interest payments, but your actual payment may vary based on final loan terms.

Q5: Can I use this for other types of loans?
A: Yes, this formula works for any fixed-rate amortizing loan, though rates and terms will vary.