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.
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Enter values and click Calculate to see results
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 | Loan Type | PMI Required | Best For |
|---|---|---|---|
| 3% | Conventional 97 | Yes | First-time buyers, low savings |
| 3.5% | FHA Loan | Yes (MIP) | Lower credit scores |
| 5% | Conventional | Yes | Minimum conventional |
| 10% | Conventional | Yes | Better rates, lower PMI |
| 20% | Conventional | No | Avoid PMI, best rates |
| 25%+ | Conventional/Jumbo | No | Best rates, investment properties |
PMI typically costs 0.5-1% of loan amount annually and can be removed once you reach 20% equity.
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)
| Term | Rate | Monthly P&I | Total Interest |
|---|---|---|---|
| 15 years | 6.5% | $2,618 | $171,240 |
| 30 years | 7% | $1,996 | $418,560 |
The 15-year saves $247,000 in interest but costs $622 more per month.
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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