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Mortgage Calculator

Use our multifamily mortgage calculator with attached amortization schedule to determine monthly payments. Just enter your loan amount and interest rate and our calculator will do the rest.

Multifamily Mortgage Calculator

Balloon Payment Amount


Interest-Only Payment


monthly P&I Payment


Amortization Schedule | This is an estimate only and should not be used for accounting purposes.

A multifamily mortgage is used to finance the purchase or refinancing of multiple-unit properties like apartment buildings, condominium complexes, townhomes, or other residential properties with two or more units. Hence, they are ideal for investment purposes. This also explains why real estate investors and developers who wish to generate rental income from the multiple units in the property look for multifamily mortgages.

Multifamily mortgages can have different loan structures and terms. It varies depending on your lender and the specific circumstances of the borrower. This is where using a mortgage calculator can come in handy.

multifamily mortgage calculator fairmount funding
multifamily mortgage calculator fairmount

How to Use Fairmount Funding's Multifamily Mortgage Calculator

Owning a multifamily property can be challenging if you need help to pay the mortgage. Fortunately, Fairmount Funding’s multifamily mortgage calculator can take the guesswork out and help estimate how much you will need to pay monthly. Here is how it works:

  1. Enter a loan amount. You can play around with the number to see how much you can borrow from a real estate hard money lender.


  2. Input an interest rate. Your interest rate will depend on the type of loan you have, repayment length, the loan amount, your multifamily property’s loan-to-value ratio, and more.


  3. Choose a loan term. This refers to the years you have to pay your multifamily mortgage loan fully. A 30-year fixed-rate mortgage is a common choice among homebuyers and property investors because it allows them to split a lower monthly payment over a more extended period.


  4. Add your amortization. This is scheduling your mortgage loan into equal payments over a fixed period. Part of your amortization covers the interest, while the rest goes to paying the principal loan amount.

Costs Included in a Multifamily Mortgage Payment

A mortgage payment consists of the principal and the interest. The principal is the amount of money you borrowed, while the interest is the fee that your lender charges for letting you borrow property investment funds.

Your lender may also collect an extra amount each month to be placed in an escrow account. This money is typically used to pay your local property tax collector and insurance provider. Here are some of the costs that can be included in your mortgage payment:

  • Principal. This is the specific sum of money that you borrowed from the lender.

  • Interest. Often expressed as an annual percentage, it is a fee that lenders charge for lending you the funds to purchase a multifamily investment property.

  • Property taxes. Local authorities levy an annual tax on your property. If you have an escrow account, you make monthly payments equivalent to about one-twelfth of your total annual tax bill, along with your mortgage payment.

  • Homeowners insurance. This covers losses and damages due to events like fire, storms, theft, or other hazards you may encounter on your property. You may need multiple insurance policies if your multifamily property is in a flood zone or areas prone to hurricanes or earthquakes.

  • Mortgage insurance. If your down payment is less than 20 percent of the home’s purchase price, you will likely be required to have mortgage insurance, which is also included in your monthly payment.

Fairmount Funding is here to support borrowers of all levels. Contact us or apply.

Speak with our team or fill out an application, we will get back to you ASAP.

Helpful Mortgage Calculator Terms and Definitions

  • Loan Amount. This refers to the sum of money borrowed from a lender. It reflects the initial principal balance of the loan and is typically based on the property’s purchase price or appraised value.

  • Loan Term. The loan term refers to a period specified in your loan agreement and is usually expressed in years. During this time, you are obligated to make regular payments to repay the loan. Your loan term can also impact the monthly payment amount and the total interest paid over the life of the loan.

  • Interest Rate. It is a fee that the lender charges for letting you borrow money. It represents the annual cost of the loan and is one of the factors for your monthly payment. It can be constant throughout the loan term or change periodically based on market conditions.

  • Amortization. This refers to gradually paying off a loan over time through regular installment payments. In the context of a mortgage loan, it involves making periodic payments that include both principal and interest components. Meanwhile, the amortization schedule shows the breakdown of each payment and how it contributes to reducing the loan balance over time.

  • Balloon Payment. A balloon payment is a significant lump sum payment due after a series of smaller periodic payments. You can encounter this in certain types of loans because it can reduce your monthly payments during the loan term. However, you need to make a large payment at the end.

  • Principal and Interest (P&I). Principal and interest refer to the two main components of a loan payment. The monthly payment typically remains constant over the loan term, but the portion allocated to principal and interest changes over time as the loan is gradually paid off.

How can a mortgage loan calculator help reduce your monthly payment?

A multifamily mortgage calculator can help you determine whether you are spending more than you can afford. That is because you can use this tool to know how much you can expect to pay monthly, including taxes and insurance.

Additionally, it can help you decide whether you can get rid of your mortgage insurance. It can show you if you have 20% equity in your multifamily property investment. Once you achieve it, you can request the lender to waive its private mortgage insurance requirement.

Fairmount Funding is here to support borrowers of all levels. Contact us or apply.

Speak with our team or fill out an application, we will get back to you ASAP.

Multifamily Mortgage Calculator FAQs

Why is it a good idea to use a mortgage calculator?

A multifamily mortgage calculator can help you compare different types of mortgages and loan terms. That way, you can decide which one works best for you. It can also help you figure out how much down payment you should make to afford the monthly payment.

Can I avoid balloon payment?

A balloon payment refers to a substantial payment that becomes due at the end of a loan. Typically associated with loans featuring shorter terms and partial amortization of the principal, you can avoid balloon payments by opting for loans with extended terms or complete principal amortization. Borrowers should carefully consider these factors to steer clear of balloon payments.

What are the next steps after using a multifamily mortgage calculator?

Thoroughly examine your budget to ensure that you have considered all your monthly expenses and have some extra funds available. It is also essential to set aside savings for potential home improvements and repairs.

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