Mortgage Calculator
Calculate monthly mortgage payments, total interest, and loan costs with taxes and insurance
Mortgage Calculator
Calculate your monthly mortgage payments
Loan Details
Your Results
Enter your home price, loan term, and interest rate to see your monthly payment calculation.
Understanding Your Mortgage Payment (PITI)
Principal
The portion of your payment that goes toward paying down the loan balance. This builds equity in your home.
Interest
The cost of borrowing money from the lender. This is typically the largest portion early in your loan.
Taxes
Property taxes collected monthly and held in escrow. Varies by location and home value.
Insurance
Homeowners insurance plus PMI if you put down less than 20%. Protects the home and lender.
Key Mortgage Payment Tips:
- ✓20% down payment avoids PMI and gets better rates
- ✓Good credit score (740+) qualifies for best rates
- ✓Stable employment (2+ years) strengthens application
- •Compare rates from multiple lenders to save thousands
- •Consider total costs not just monthly payment
- •Factor in maintenance costs (1-3% of home value annually)
15-Year vs 30-Year Mortgage Comparison
| Loan Details | 15-Year | 30-Year |
|---|---|---|
| Loan Amount | $300,000 | $300,000 |
| Interest Rate | 6.5% | 7.0% |
| Monthly Payment | $2,613 | $1,996 |
| Total Interest | $170,340 | $418,560 |
| Interest Savings | Save $248,220 | Pay $248,220 more |
Mortgage Calculator FAQ
How much house can I afford with my salary?
Generally, you can afford a house that costs 2.5 to 3 times your annual salary. With a $80,000 salary, you might afford a $200,000-$240,000 home, depending on your down payment, existing debts, and current interest rates. Use the 28/36 rule: no more than 28% of gross income on housing, 36% on total debt.
What credit score do I need for the best mortgage rates?
You typically need a credit score of 740 or higher to qualify for the best mortgage interest rates. Scores of 620-739 still qualify for competitive rates, while scores below 620 may require FHA loans or result in higher interest rates.
Should I get a 15-year or 30-year mortgage?
30-year mortgages offer lower monthly payments ($1,398 vs $2,108 on a $300k loan at 7%) but cost more in total interest ($203k vs $79k). Choose 15-year if you can afford higher payments and want to build equity faster.
How much should I put down on a house?
While 20% down avoids PMI and gets better rates, you can buy with as little as 3-5% down. FHA loans require just 3.5% down. Consider your savings, monthly budget, and whether you qualify for first-time buyer programs.
What's included in my monthly mortgage payment?
Your monthly payment typically includes Principal, Interest, Taxes, and Insurance (PITI). Property taxes and homeowners insurance are often collected monthly and held in escrow. PMI is added if you put down less than 20%.
When can I remove PMI from my mortgage?
You can request PMI removal when you reach 20% equity in your home through payments or appreciation. It automatically cancels at 22% equity. This typically takes 8-12 years with a 5% down payment.
Should I pay discount points to lower my rate?
Discount points cost 1% of loan amount per 0.25% rate reduction. They make sense if you'll stay in the home long enough to recoup the cost (typically 5-7 years). Calculate the break-even point before deciding.
What's the difference between APR and interest rate?
Interest rate is the cost of borrowing. APR includes the interest rate plus other loan costs like origination fees, discount points, and PMI, giving you the true cost of the loan for comparison shopping.