Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, property taxes, and homeowners insurance. Our free calculator helps you understand the true cost of homeownership.
Mortgage Calculator
Calculate monthly payments with taxes, insurance, and PMI
Loan Details
Amortization Schedule
Monthly Payment Breakdown
Amortization Schedule (Balance Over Time)
Monthly Payment
Total Estimated Monthly Payment
📚 Learn More About Mortgages
📊 Understanding Mortgage Basics
A mortgage payment includes Principal (loan amount), Interest (cost of borrowing), Taxes (property tax), and Insurance (homeowners insurance) - known as PITI.
Example: On a $300,000 loan at 7% for 30 years, your monthly payment is ~$2,000 (P&I only), plus taxes and insurance.
🏠 Fixed vs ARM Mortgages
Interest rate stays the same for the entire loan term. Predictable payments, ideal for long-term ownership.
Rate changes after initial fixed period (5/1, 7/1 ARM). Lower initial rate but riskier long-term.
💰 Down Payment Impact
Putting down 20% avoids PMI (Private Mortgage Insurance), which costs 0.5-1.5% of loan amount annually. That's $125-375/month on a $300K loan!
Pro tip: Even if you can't do 20%, putting down more reduces your monthly payment and total interest paid.
📈 Amortization Explained
In early years, most of your payment goes to interest. Over time, more goes to principal. This is amortization.
Year 1: ~80% interest, 20% principal
Year 15: ~50% interest, 50% principal
Year 30: ~10% interest, 90% principal
⚠️ Common Mistakes
- Only looking at monthly payment (ignore total interest)
- Not shopping around for rates (0.5% = $30K+ difference)
- Maxing out budget (become "house poor")
- Forgetting closing costs (2-5% of loan)
- Not getting pre-approved before house hunting
✅ Best Practices
- Get pre-approved before shopping
- Compare rates from 3+ lenders
- Consider 15-year for lower total interest
- Make extra principal payments when possible
- Keep housing costs under 28% of income
- Save 20% down to avoid PMI
How to Use This Mortgage Calculator
Enter Home Details
Input home price, down payment amount, loan term (15 or 30 years), and interest rate.
Add Taxes & Insurance
Enter annual property tax and homeowners insurance to see your complete PITI payment.
Review & Compare
View your monthly payment, total interest, and amortization schedule. Try different scenarios to find the best option.
Frequently Asked Questions
How much house can I afford?
Use the 28/36 rule: housing costs shouldn't exceed 28% of gross monthly income, and total debt shouldn't exceed 36%. For example, with $100,000 annual income ($8,333/month), your max housing payment is $2,333/month. This includes principal, interest, taxes, insurance, and HOA fees. Lenders may approve more, but staying within these limits helps avoid being "house poor."
What is PMI and how do I avoid it?
PMI (Private Mortgage Insurance) protects the lender if you default. It's required when your down payment is less than 20% and costs 0.5-1.5% of the loan amount annually ($125-375/month on a $300K loan). Avoid it by putting down 20%, or remove it once you reach 20% equity through payments or home appreciation. PMI automatically terminates at 22% equity.
Should I get a 15-year or 30-year mortgage?
15-year mortgages have higher monthly payments but lower interest rates (typically 0.5-0.75% less) and you'll pay far less total interest. 30-year mortgages have lower monthly payments, giving you more flexibility, but you'll pay significantly more interest over time. Choose 15-year if you can afford higher payments and want to build equity faster. Choose 30-year for lower payments and more financial flexibility.
How much can I save with extra payments?
Extra payments go directly to principal and can save tens of thousands in interest. On a $300,000 loan at 7% for 30 years, paying just $200 extra per month saves $82,000 in interest and pays off the loan 7 years early! Even small extra payments make a big difference. Always specify that extra payments should go to principal, not future payments.