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Mortgage Calculator

Estimate your monthly mortgage payment including principal, interest, taxes, and insurance.

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What Is a Mortgage Calculator?

A mortgage calculator estimates your monthly principal and interest payment based on the home price, down payment, interest rate, and loan term. Understanding these numbers before you start house hunting helps you set a realistic budget and avoid being surprised at closing. This calculator focuses on the P&I portion; your actual payment will also include property taxes, homeowners insurance, and possibly PMI.

How to Use This Calculator

1

Enter the Home Price

Input the purchase price of the home you are considering. Use market data from Zillow, Redfin, or your agent for realistic pricing.

2

Set Your Down Payment

Enter your down payment as a percentage. 20% avoids PMI on conventional loans, but FHA loans allow as low as 3.5% and some VA loans require 0%.

3

Input the Interest Rate

Enter the mortgage rate you expect. Check current rates from your bank or broker. Even 0.25% makes a significant difference over 30 years.

4

Choose Your Loan Term

30-year terms have lower monthly payments but cost far more in total interest. 15-year terms save dramatically on interest but require higher monthly payments.

Key Concepts

Principal & Interest

The P&I payment covers both the loan balance repayment and interest charges. Early payments are mostly interest; the balance shifts toward principal over time.

PMI (Private Mortgage Insurance)

Required when your down payment is less than 20% on conventional loans. Typically 0.3-1.5% of the loan amount annually. Can be removed once you reach 20% equity.

Escrow

Lenders often collect property taxes and insurance monthly as part of your mortgage payment, holding the money in escrow until the bills are due.

Points

Mortgage points let you prepay interest upfront to reduce your rate. One point costs 1% of the loan and typically lowers the rate by 0.25%. Worth it if you plan to stay 5+ years.

Expert Insights

The total interest on a 30-year mortgage at 7% is roughly the same as the original loan amount. On a $320,000 loan, you would pay about $446,000 in interest alone over 30 years.

Making one extra payment per year (or adding 1/12 to each monthly payment) can shave 4-5 years off a 30-year mortgage and save tens of thousands in interest.

Do not stretch your budget to buy the maximum the bank approves. Aim for a monthly payment (including taxes and insurance) under 28% of your gross monthly income.

Frequently Asked Questions

A common guideline is 3-4.5 times your annual household income for the purchase price. Keep total housing costs (mortgage, taxes, insurance) under 28% of gross monthly income.
A 15-year mortgage saves dramatically on interest and builds equity faster. A 30-year provides lower required payments and more cash-flow flexibility. Choose 30-year if you will invest the difference; choose 15 if you want to be debt-free faster.
This shows principal and interest only. Property taxes, homeowners insurance, HOA fees, and PMI (if applicable) are not included. These typically add $300-$800+ per month depending on your location.
Refinancing makes sense when the new rate is at least 0.75-1% lower than your current rate, you plan to stay long enough to recoup closing costs, and your credit score qualifies you for a better deal.

This calculator provides estimates for educational purposes only. Actual results depend on your specific financial situation, lender terms, and market conditions. Consult a qualified financial advisor before making major financial decisions.

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Apr 22, 2026

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