Mortgage Calculator
Calculate your monthly mortgage payments with precision using our comprehensive mortgage calculator. Input your loan amount, interest rate, and term to get an accurate estimate that includes principal, interest, property taxes, and insurance. Make informed decisions about your home financing and budget effectively.
Calculate monthly mortgage payments, estimate PMI, and view detailed amortization schedules for your home loan.
Mortgage Payment Summary
Monthly Payment
Loan Amount
Principal & Interest
Property Tax
Home Insurance
PMI
HOA Fees
Payment Breakdown
Principal & Interest
Taxes & Insurance
Other
Understanding Mortgages
- Principal is the amount you borrow
- Interest is the cost of borrowing money
- PMI is required with down payments under 20%
- Property taxes and insurance are often escrowed
- Your credit score affects your interest rate
Smart Mortgage Tips
- 20% down payment avoids PMI
- Compare rates from multiple lenders
- Check your credit score before applying
- Consider total costs, not just monthly payments
- Save for closing costs (2-5% of loan amount)
Mortgage FAQs
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's value. It protects the lender if you default on the loan. PMI typically costs 0.5% to 1% of the loan amount annually and can be removed once you reach 20% equity in your home.
Your credit score significantly impacts your mortgage rate. For example:
- Excellent (740+): Best rates available
- Good (700-739): Slightly higher rates
- Fair (650-699): Higher rates, may need larger down payment
- Poor (below 650): Much higher rates or may not qualify
Even a 1% difference in rate can mean tens of thousands in additional interest over the loan term.
A typical mortgage payment includes:
1. Principal and Interest (P&I)
2. Property Taxes
3. Homeowners Insurance
4. PMI (if down payment < 20%)
5. HOA fees (if applicable)
This is often referred to as PITI (Principal, Interest, Taxes, Insurance).
15-year vs. 30-year mortgage comparison:
15-Year Advantages:
- Lower total interest paid
- Build equity faster
- Own home sooner
30-Year Advantages:
- Lower monthly payments
- More budget flexibility
- Ability to invest difference
Choose based on your financial goals and budget comfort level.
Mortgage points are upfront fees paid to lower your interest rate. One point costs 1% of the loan amount and typically lowers your rate by 0.25%. Consider points if you:
1. Plan to stay in the home long-term
2. Have cash available at closing
3. Will break even on the cost within 5-7 years
Calculate the break-even point by dividing point cost by monthly savings.
General affordability guidelines:
- Monthly payment should not exceed 28% of gross monthly income
- Total debt payments should not exceed 36% of income
- Factor in:
* Down payment and closing costs
* Emergency savings (3-6 months)
* Other housing costs (maintenance, utilities)
* Future plans and lifestyle needs
Closing costs typically range from 2-5% of the loan amount and include:
- Lender fees (application, origination)
- Third-party fees (appraisal, title search)
- Prepaid items (property taxes, insurance)
- Points (if purchasing)
Some costs are negotiable, and some sellers may help with closing costs.
To secure the best mortgage rate:
1. Improve credit score (aim for 740+)
2. Save for larger down payment (20%+)
3. Compare multiple lenders
4. Consider different loan terms
5. Lock rate when favorable
6. Negotiate fees
7. Document all income and assets
8. Keep debt-to-income ratio low
