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Mortgage Calculator – Calculate Monthly Home Loan Payments

Estimate your monthly mortgage payment, total interest paid, and full amortization schedule based on home price, down payment, rate, and loan term.

Results

Enter values and click Calculate to see results

Understanding Mortgage Payments
What goes into your monthly payment

Your mortgage payment isn't just principal and interest. Most lenders require escrow for property taxes and homeowners insurance. This is called PITI – Principal, Interest, Taxes, Insurance. Some loans also include PMI (private mortgage insurance) if your down payment is under 20%.

The calculator shows principal and interest only. Add 1-2% of home value annually for property taxes (varies by location), 0.3-0.5% for insurance, and 0.5-1% for PMI if applicable. A $300,000 home might add $400-700/month beyond the base payment.

PITI Breakdown Example

Principal & Interest: $1,500

Property Taxes: $350

Homeowners Insurance: $100

PMI (if <20% down): $150

Total Monthly: $2,100

Down Payment Guidelines
How much should you put down?
Down PaymentLoan TypePMI RequiredBest For
3%Conventional 97YesFirst-time buyers, low savings
3.5%FHA LoanYes (MIP)Lower credit scores
5%ConventionalYesMinimum conventional
10%ConventionalYesBetter rates, lower PMI
20%ConventionalNoAvoid PMI, best rates
25%+Conventional/JumboNoBest rates, investment properties

PMI typically costs 0.5-1% of loan amount annually and can be removed once you reach 20% equity.

15-Year vs 30-Year Mortgage
Choosing the right loan term

15-Year Mortgage

  • • Lower interest rates (typically 0.5-1% less)
  • • Build equity faster
  • • Pay off home sooner
  • • Much less total interest
  • • Higher monthly payment
  • • Less flexibility in budget

30-Year Mortgage

  • • Lower monthly payment
  • • More budget flexibility
  • • Qualify for more house
  • • Tax deduction lasts longer
  • • Higher interest rates
  • • Much more total interest paid

Example: $300,000 Loan at 6.5% (15yr) vs 7% (30yr)

TermRateMonthly P&ITotal Interest
15 years6.5%$2,618$171,240
30 years7%$1,996$418,560

The 15-year saves $247,000 in interest but costs $622 more per month.

Frequently Asked Questions

How much house can I afford?
The 28/36 rule: housing costs shouldn't exceed 28% of gross monthly income, total debt (including housing) shouldn't exceed 36%. On $5,000/month income, that's $1,400 for housing, $1,800 total debt. Lenders may allow up to 43-50% but that's risky.
What's a good mortgage rate?
"Good" depends on market conditions. As of recent years, anything under 6% is excellent, 6-7% is average, above 7% is high. Your rate depends on credit score, down payment, debt-to-income ratio, and loan type. Shop multiple lenders – rates can vary by 0.5% or more.
Should I pay points to lower my rate?
Points are prepaid interest – 1 point costs 1% of loan amount and typically reduces rate by 0.25%. Break-even is usually 4-7 years. If you'll keep the loan longer, points save money. If you'll refinance or sell sooner, skip points.
What's the difference between APR and interest rate?
Interest rate is what you pay on the loan balance. APR includes interest plus fees (origination, points, etc.) spread over the loan term. APR is always higher and shows the true cost. Compare APRs when shopping lenders, not just interest rates.
When does PMI go away?
PMI automatically terminates at 78% loan-to-value (22% equity) based on original value. You can request removal at 80% LTV (20% equity) with an appraisal. FHA loans have MIP for the life of the loan if down payment was under 10%.

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