Mortgage Calculator
Calculate mortgage payments, total interest, and view complete amortization schedules. Free, accurate mortgage calculator with detailed breakdowns.
Calculate Your Mortgage Payment
Our mortgage calculator helps you estimate your monthly home loan payments with precision. Whether you're buying your first home or refinancing, understanding your mortgage payment is crucial for financial planning. This calculator provides a complete breakdown including principal, interest, property taxes, insurance, and PMI, giving you the full picture of your monthly housing costs. Use this tool to compare different loan scenarios, determine affordability, and make informed decisions about one of the biggest financial commitments you'll make.
Loan Details
Additional Costs (Optional)
Enter your loan details and click calculate to see your monthly payment and loan summary.
How to Use the Mortgage Calculator
Enter Home Price
Input the total purchase price of the home you're considering. This is the full market value before your down payment. You can find this on property listings or from your real estate agent.
Set Down Payment
Enter your down payment as a percentage (typically 3-20%) or dollar amount. A 20% down payment helps you avoid PMI. The calculator automatically shows both percentage and dollar amounts for easy comparison.
Choose Loan Term
Select your mortgage term (15, 20, or 30 years). Shorter terms mean higher monthly payments but less total interest. 30-year mortgages are most common for lower monthly payments.
Enter Interest Rate
Input your expected annual interest rate. Check current mortgage rates from lenders or use the national average. Even small rate differences significantly impact total cost over the loan term.
Add Optional Costs
Include property tax rate (usually 1-2% annually), home insurance ($1,000-$2,000/year), PMI if down payment is under 20%, and any HOA fees. These ensure your total monthly payment estimate is accurate.
Review Results
See your complete monthly payment breakdown, total interest paid over the loan term, and access the full amortization schedule showing how each payment is split between principal and interest.
Understanding Your Mortgage Results
Monthly Payment Breakdown
Your total monthly payment consists of several components. Principal and interest (P&I) form the core payment - this is what actually pays down your loan. Property taxes are typically collected monthly by your lender and held in escrow until tax bills are due. Home insurance protects your investment and is required by lenders. PMI (Private Mortgage Insurance) is required if your down payment is less than 20% and protects the lender. HOA fees, if applicable, cover community amenities and maintenance. Understanding each component helps you see where your money goes and identify areas where you might save.
Total Interest vs. Principal
The total interest you pay over the life of your loan can be substantial - often exceeding the original loan amount for 30-year mortgages. This calculator shows you exactly how much interest you'll pay, helping you understand the true cost of borrowing. The principal is the actual loan amount you borrowed. Early in your mortgage, most of your payment goes toward interest; over time, more goes toward principal. This is why making extra principal payments early can save significant interest.
Amortization Schedule
The amortization schedule is a detailed table showing every payment over your loan term. Each row shows the payment number, amount paid toward principal, amount paid toward interest, and remaining balance. You'll notice that interest payments start high and decrease over time, while principal payments increase. This schedule is valuable for understanding how extra payments accelerate payoff and reduce total interest. Many homeowners use this to plan refinancing or determine the impact of additional payments.
Down Payment Impact
Your down payment size dramatically affects your mortgage. A larger down payment reduces your loan amount, lowering monthly payments and total interest. Putting down 20% or more eliminates PMI, saving you hundreds monthly. However, don't drain your savings - maintain an emergency fund. Some buyers choose smaller down payments to invest the difference elsewhere or keep liquidity. Use the calculator to compare scenarios: 20% down vs. 10% down to see the trade-offs in monthly payment, PMI costs, and total interest.
Loan Term Comparison
The loan term you choose creates a balance between monthly affordability and total cost. A 30-year mortgage offers lower monthly payments but significantly higher total interest - you might pay nearly double the loan amount in interest. A 15-year mortgage has higher monthly payments but builds equity faster and saves tens of thousands in interest. Some homeowners choose 30-year loans but pay extra toward principal, creating flexibility. Use the calculator to model different terms and see how they fit your budget and financial goals.
Mortgage Tips & Best Practices
Shop Multiple Lenders
Interest rates vary significantly between lenders. Getting quotes from at least 3-5 lenders can save you thousands over the life of your loan. Even a 0.25% rate difference on a $300,000 mortgage saves over $15,000 in interest.
Check Your Credit First
Your credit score heavily impacts your interest rate. Before applying, check your credit report for errors and work to improve your score. A jump from 680 to 740 can lower your rate by 0.5% or more, saving hundreds monthly.
Consider Total Monthly Costs
Don't focus solely on principal and interest. Include property taxes, insurance, PMI, HOA fees, maintenance, and utilities when determining affordability. A good rule: total housing costs should not exceed 28% of gross monthly income.
Make Extra Principal Payments
Even small additional payments toward principal can shave years off your mortgage and save substantial interest. Paying an extra $100-200 monthly on a 30-year mortgage can reduce the term by 5-7 years.
Understand PMI Removal
If you put down less than 20%, you'll pay PMI until you reach 20% equity. This typically costs 0.5-1% of the loan amount annually. You can request PMI removal once you reach 20% equity through payments or home appreciation.
Plan for Rate Changes
If considering an adjustable-rate mortgage (ARM), understand how much your payment could increase when the rate adjusts. Calculate worst-case scenarios to ensure you can afford maximum payments.
Frequently Asked Questions
Common Mortgage Mistakes to Avoid
Maxing out your approved loan amount
Solution: Just because you're approved for a certain amount doesn't mean you should borrow it all. Leave room in your budget for other goals, unexpected expenses, and lifestyle flexibility. Pre-approval shows the maximum - aim for 70-80% of that for comfortable payments.
Forgetting about closing costs and moving expenses
Solution: Budget 2-5% of home price for closing costs plus moving expenses, new furniture, immediate repairs, and several months of mortgage payments as a cushion. Many first-time buyers drain savings for the down payment and struggle with these additional costs.
Not shopping around for rates
Solution: Get quotes from at least 3-5 lenders including banks, credit unions, and online lenders. Rates and fees can vary significantly. Even 0.25% rate difference saves thousands. Compare the Annual Percentage Rate (APR) which includes fees, not just the interest rate.
Ignoring your credit score until applying
Solution: Check credit 6-12 months before house hunting. Fix errors, pay down high balances, and avoid new credit. Improving your score from 680 to 740 can lower rates by 0.5% or more. Small credit improvements create significant long-term savings.
Making large purchases before closing
Solution: Avoid major purchases, new credit cards, or changing jobs during the mortgage process. Lenders verify employment and credit right before closing. New debt or employment changes can delay or derail your mortgage approval even days before closing.
Choosing an ARM without understanding the risks
Solution: Adjustable-rate mortgages (ARMs) offer low initial rates but can increase significantly. Calculate worst-case scenarios - can you afford maximum payments? ARMs work best if you'll sell or refinance before rates adjust, but don't bet your home on it.
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