0 Down Mortgage Calculator

This 0 Down Mortgage Calculator helps you determine your monthly mortgage payments when you're putting 0% down on a home purchase. Simply enter the loan amount, interest rate, and loan term to calculate your payments.

How to Use This Calculator

Using this calculator is simple:

Enter the total loan amount you're borrowing
Input the annual interest rate (APR)
Select the loan term in years
Click "Calculate" to see your monthly payment

The calculator will display your monthly payment amount along with a breakdown of how much goes toward principal and interest each month.

Formula Used

The monthly mortgage payment is calculated using the standard mortgage formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]

Where:

M = Monthly payment
P = Principal loan amount
i = Monthly interest rate (annual rate divided by 12)
n = Number of payments (loan term in years multiplied by 12)

This formula accounts for the fact that each payment includes both principal and interest, with the interest portion decreasing over time as the principal balance is paid down.

Worked Example

Let's calculate a monthly payment for a $200,000 loan with a 4.5% annual interest rate over 30 years:

Convert annual rate to monthly: 4.5% ÷ 12 = 0.375% or 0.00375
Calculate number of payments: 30 years × 12 = 360 payments
Plug values into formula:

M = $200,000 [ 0.00375(1 + 0.00375)^360 ] / [ (1 + 0.00375)^360 - 1 ]
Calculate the result: $200,000 × 0.00596 ≈ $1,192.00

So the monthly payment would be approximately $1,192.00.

Frequently Asked Questions

What is a 0 down mortgage?: A 0 down mortgage is a home loan where you don't need to make a down payment. This means you're borrowing 100% of the home's purchase price.
What are the advantages of a 0 down mortgage?: Advantages include not needing to save for a down payment, potentially lower monthly payments compared to conventional loans, and the ability to purchase a more expensive home.
What are the disadvantages of a 0 down mortgage?: Disadvantages include higher interest rates, higher monthly payments in the long run, and the risk of losing your home if you can't make payments.
What credit score is needed for a 0 down mortgage?: Lenders typically require a credit score of at least 620 for a 0 down mortgage, though some may require higher scores depending on the lender and loan program.
What are the closing costs for a 0 down mortgage?: Closing costs for a 0 down mortgage are typically higher than for conventional loans because you're financing the entire purchase price. These costs can include appraisal fees, title insurance, and origination fees.