Mortgage Calculator - Calculate Monthly Payments & Total Interest
Free mortgage calculator to calculate monthly payments, total interest, and affordability for home loans.
Calculate your mortgage payments with detailed breakdowns of principal, interest, taxes, and insurance (PITI).
Plan your home purchase with accurate mortgage calculations for different loan amounts, interest rates, and terms.
How to Use the Mortgage Calculator
Enter the home price or loan amount you're considering
Input your down payment amount or percentage
Enter the annual interest rate (as a percentage)
Select the loan term (typically 15 or 30 years)
Include annual property taxes and homeowners insurance
Add PMI if down payment is less than 20%
Include HOA fees if applicable to the property
Click 'Calculate' to see monthly payment and total costs
Key Features of Our Mortgage Calculator
Real Mortgage Calculation Examples
First-Time Homebuyer
Home price: $350,000 | 10% down | 30-year at 6.5% | Taxes: $3,500/year | Insurance: $1,200/year
20% Down Payment - No PMI
Home price: $500,000 | 20% down | 30-year at 6% | Taxes: $6,000/year | Insurance: $1,800/year
15-Year vs 30-Year Comparison
$400,000 loan at 5.8% | 15-year: $3,325/month vs 30-year: $2,352/month
High-Cost Area Mortgage
Home price: $800,000 | 15% down | 30-year at 6.75% | Taxes: $10,000/year | Insurance: $2,400/year
Jumbo Loan Example
Home price: $1,200,000 | 25% down | 30-year at 7.2% | Taxes: $15,000/year | Insurance: $3,600/year
Mortgage Calculator Use Cases
Home Buying Budget Planning
Determine how much house you can afford based on your income, down payment savings, and monthly payment capacity. Plan your home search within realistic budget constraints.
Refinancing Decision Making
Analyze whether refinancing your current mortgage makes sense by comparing your current rate and terms with new loan options, including closing costs and break-even analysis.
Extra Payment Strategy
Calculate how making extra principal payments can reduce your total interest costs and shorten your loan term, helping you build equity faster and save money.
Investment Property Analysis
Calculate mortgage payments for rental properties to determine cash flow potential, return on investment, and whether the property makes financial sense as an investment.
Loan Term Comparison
Compare different loan terms (15-year vs 30-year, fixed vs adjustable) to find the best option based on your financial goals, monthly payment capacity, and long-term plans.
Understanding Mortgages
A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral for the loan. Monthly mortgage payments typically include four components: principal (loan repayment), interest (cost of borrowing), property taxes, and homeowners insurance - commonly referred to as PITI. Understanding how these components work together helps you make informed decisions about home financing.
The mortgage term significantly impacts your monthly payment and total costs. A 30-year mortgage offers lower monthly payments but results in much higher total interest over the life of the loan. A 15-year mortgage has higher monthly payments but saves hundreds of thousands in interest and builds equity faster. Your choice depends on your budget, risk tolerance, and long-term financial goals.
Private Mortgage Insurance (PMI) is required when you put down less than 20% on conventional loans. PMI protects the lender if you default but adds to your monthly payment. PMI typically costs 0.5-1.5% of the loan amount annually and can be removed once you reach 20% equity in your home through payments or appreciation.
Common Mortgage Mistakes and Tips
Mistake
Only focusing on monthly payment amount
Tip
Consider total interest costs and loan term. A lower payment might mean significantly higher total costs over the life of the loan. Look at the big picture, not just the monthly figure.
Mistake
Forgetting about property taxes and insurance
Tip
Property taxes and insurance can add 25-35% to your base mortgage payment. Always include these in your budget calculations to avoid payment shock.
Mistake
Not shopping around for the best interest rate
Tip
Even a 0.5% difference in interest rate can save tens of thousands over the life of your loan. Get quotes from multiple lenders and negotiate for the best rate.
Mistake
Underestimating closing costs
Tip
Budget 2-5% of the purchase price for closing costs in addition to your down payment. These include appraisal fees, title insurance, attorney fees, and prepaid expenses.
Mistake
Ignoring the impact of interest rate type
Tip
Understand the difference between fixed and adjustable-rate mortgages. Fixed rates provide stability, while adjustable rates might start lower but can increase significantly over time.
Mistake
Not considering future plans
Tip
Consider how long you plan to stay in the home. If you might move within 5-7 years, an adjustable-rate mortgage or shorter-term fixed loan might be more cost-effective.
Mortgage Calculator Frequently Asked Questions
How much house can I afford?
A common guideline is that your total monthly payment should not exceed 28-30% of your gross monthly income, and your total debt payments should not exceed 36-43%. However, these vary by lender and individual circumstances.
What's the difference between a 15-year and 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly lower total interest (about half). A 30-year mortgage offers lower monthly payments but much higher total costs due to longer interest accumulation.
When can I remove PMI from my mortgage?
You can request PMI removal when you reach 20% equity through payments or home appreciation. Lenders must automatically remove PMI when you reach 22% equity, based on the original amortization schedule.
Should I get pre-approved for a mortgage?
Yes, mortgage pre-approval is highly recommended. It shows sellers you're a serious buyer, gives you a firm budget to work with, and can speed up the closing process once you find a home.
What are mortgage points and should I buy them?
Mortgage points are prepaid interest that lower your interest rate. One point typically costs 1% of the loan amount and reduces the rate by about 0.25%. They're worth it if you plan to stay long enough to break even.
How does my credit score affect my mortgage rate?
Higher credit scores generally result in lower interest rates. Excellent credit (740+) gets the best rates, while lower scores may pay higher rates or have difficulty qualifying for conventional loans.
What's included in PITI?
PITI stands for Principal, Interest, Taxes, and Insurance. It represents your total monthly housing payment and is what lenders use to calculate your debt-to-income ratio and loan eligibility.
Should I make extra mortgage payments?
Extra payments can save significant interest and build equity faster. However, consider whether that money could earn better returns elsewhere or be used for other financial goals before committing to extra payments.