Overview

The Mortgage Calculator computes monthly payments, total interest, and amortization schedules for home mortgage loans in Korea. It supports comparison across repayment methods including equal principal and interest, equal principal, and bullet repayment. You can also verify loan eligibility against LTV, DTI, and DSR regulations. Buying a home is the largest financial decision for most households, so understanding monthly obligations and total interest costs under different loan conditions is crucial. This calculator provides a detailed month-by-month amortization schedule with visual charts showing how principal and interest proportions change over time. You can compare fixed vs. variable rate scenarios and simulate prepayment savings to develop an optimal borrowing strategy.

Formula

Equal P&I monthly payment = P × r × (1+r)^n ÷ ((1+r)^n - 1)
(P: principal, r: monthly rate, n: total months)

Equal principal monthly payment = P÷n + (P - repaid principal) × r

Example: 300M KRW loan, 4% annual, 30 years, equal P&I
Monthly payment ≈ 1,432,000 KRW, Total interest ≈ 215M KRW

How to Use

1. 1Enter the loan amount (mortgage principal).
2. 2Enter the interest rate (annual rate).
3. 3Select the repayment period (years).
4. 4Select the repayment method (equal P&I, equal principal, bullet).
5. 5Click calculate to see monthly payments, total interest, and amortization schedule.

Examples

Background

Korea's mortgage market developed significantly after the 1997 Asian Financial Crisis. As housing prices surged in the early 2000s and household debt grew rapidly, the government introduced LTV and DTI regulations. Since 2019, DSR (Debt Service Ratio) regulations have been phased in. The Korea Housing Finance Corporation (KHFC), established in 2004, introduced long-term fixed-rate mortgages (Bogeumjari Loans) to promote housing stability. Korea's household debt-to-GDP ratio is now among the world's highest, making prudent mortgage planning increasingly important.

Tips

• ✔Equal P&I payments are the same each month for easy budgeting; equal principal payments result in less total interest.
• ✔Understand fixed vs. variable rates and consider fixed rates during rising rate periods.
• ✔Longer loan terms reduce monthly burden but significantly increase total interest.
• ✔After the prepayment fee exemption period (usually 3 years), consider prepaying with surplus funds.
• ✔Korean mortgages are subject to 40% DSR regulations, so check total loan repayment against annual income.

FAQ