Mortgage Calculator
Calculate your monthly mortgage payments, total interest, and view detailed amortization schedule
Loan Details
Results
Payment Breakdown
How to Use the Mortgage Calculator
Our mortgage calculator helps you estimate your monthly mortgage payments and understand the total cost of your home loan. Follow these steps:
- Home Price: Enter the total purchase price of the home
- Down Payment: Enter the amount you plan to pay upfront (typically 20% of home price)
- Loan Term: Choose the length of your mortgage (15 or 30 years is most common)
- Interest Rate: Enter the annual interest rate for your mortgage
- Additional Costs: Include property tax, home insurance, and PMI if applicable
Understanding Your Mortgage Payment
Your monthly mortgage payment typically includes four components, often referred to as PITI:
- Principal: The amount you borrowed to purchase the home
- Interest: The cost of borrowing money from the lender
- Taxes: Annual property taxes divided by 12 months
- Insurance: Homeowners insurance and PMI (if down payment is less than 20%)
What is PMI?
Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home's value. PMI protects the lender in case you default on the loan. Once you've built up 20% equity in your home, you can usually request to have PMI removed.
Fixed-Rate vs. Adjustable-Rate Mortgages
Fixed-Rate Mortgage
A fixed-rate mortgage maintains the same interest rate throughout the entire loan term, providing predictable monthly payments. This is ideal for homebuyers who plan to stay in their home long-term and want payment stability.
Adjustable-Rate Mortgage (ARM)
An ARM has an interest rate that can change periodically, typically starting with a lower rate than fixed-rate mortgages. While the initial rate is attractive, payments can increase significantly when the rate adjusts.
Tips for Getting the Best Mortgage Rate
- Improve your credit score before applying (aim for 740+)
- Save for a larger down payment (20% or more)
- Compare rates from multiple lenders
- Consider paying points to lower your interest rate
- Shop during the right time - rates fluctuate based on economic conditions
- Keep your debt-to-income ratio below 43%
How Much House Can You Afford?
Most financial advisors recommend keeping your mortgage payment below 28% of your gross monthly income. Your total monthly debt payments (including mortgage, car loans, credit cards, etc.) should not exceed 36% of your gross monthly income.
Additional Costs of Homeownership
Beyond your mortgage payment, budget for these ongoing expenses:
- Maintenance and Repairs: Budget 1-2% of home value annually
- HOA Fees: If your property is part of a homeowners association
- Utilities: Electric, gas, water, internet, etc.
- Home Warranty: Optional protection for major systems and appliances
Frequently Asked Questions
What credit score do I need to buy a house?
While you can qualify for an FHA loan with a credit score as low as 580, conventional loans typically require a minimum score of 620. Higher scores (740+) will get you better interest rates.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly lower total interest paid. A 30-year mortgage offers lower monthly payments but costs more in interest over time. Choose based on your budget and financial goals.
When should I refinance my mortgage?
Consider refinancing when interest rates drop by at least 0.5-1%, you want to change loan terms, or you need to access home equity. Calculate whether the savings outweigh the closing costs.
What documents do I need for a mortgage application?
Typical documents include: proof of income (pay stubs, tax returns), bank statements, employment verification, credit report authorization, and identification documents.