Home Financing

Mortgage Calculator

Calculate your monthly mortgage payments, view detailed amortization schedules, and plan your home financing with confidence.

Calculate Your Mortgage

Enter your loan details below

Calculate your monthly mortgage payment based on loan amount, interest rate, and term.
$
$
%
%
0% 5% 10% 15%

Your Mortgage Breakdown

Enter your loan details to see monthly payments, total interest, and amortization schedule

Mortgage Tips & Insights

1

Save for a Larger Down Payment

Aim for at least 20% down to avoid PMI and secure better interest rates. Every extra dollar reduces your loan amount and monthly payment.

2

Improve Your Credit Score

A higher credit score can save you thousands in interest. Pay bills on time, reduce debt, and check your credit report for errors.

3

Shop Around for Rates

Compare offers from multiple lenders. Even a 0.25% difference in interest rate can save you thousands over the life of the loan.

4

Consider Shorter Loan Terms

A 15-year mortgage typically has lower interest rates and saves significantly on total interest, though monthly payments are higher.

5

Make Extra Payments

Even small extra payments toward principal can shorten your loan term by years and save thousands in interest.

6

Understand All Costs

Factor in property taxes, insurance, HOA fees, and maintenance costs. Your total housing cost should be below 28% of gross income.

Frequently Asked Questions

Your monthly mortgage payment is calculated using the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is principal (loan amount), r is monthly interest rate (annual rate ÷ 12), and n is number of payments (years × 12). This covers principal and interest. Additional costs like property tax, insurance, HOA fees, and PMI are added separately.

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's purchase price. PMI typically costs 0.5% to 1% of the loan amount annually, divided into monthly payments. You can request PMI removal once you've paid down the loan to 80% of the home's original value or current appraised value.

30-year mortgage: Lower monthly payments, more flexibility, but higher total interest paid. 15-year mortgage: Higher monthly payments, but significantly lower total interest (often 50% less) and faster equity building. Choose based on your budget, financial goals, and how long you plan to stay in the home. A 30-year mortgage offers more flexibility if you invest the difference.

An amortization schedule is a table showing each mortgage payment broken down into principal and interest portions. Early payments are mostly interest, while later payments are mostly principal. This schedule shows your loan balance after each payment and helps you understand how much equity you're building over time. It's useful for planning extra payments or refinancing decisions.

Use the 28/36 rule: Your housing costs (mortgage, taxes, insurance) should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. Lenders also consider your debt-to-income ratio (DTI), credit score, employment history, and assets. Use our affordability calculator to determine your maximum home price based on your income and debts.

Consider refinancing when: 1) Interest rates drop by at least 0.5-1%, 2) Your credit score has improved significantly, 3) You want to switch from ARM to fixed-rate, 4) You want to shorten your loan term, or 5) You need to access home equity. Calculate your break-even point by dividing closing costs by monthly savings. Refinancing typically makes sense if you'll stay in the home beyond the break-even point.

Closing costs typically range from 2-5% of the loan amount and include: origination fees, appraisal fees, title insurance, attorney fees, recording fees, and prepaid items (property taxes, homeowners insurance). For a $300,000 loan, expect $6,000-$15,000 in closing costs. Some lenders offer "no closing cost" loans, but this usually means higher interest rates or costs rolled into the loan.

Extra payments go directly toward principal, reducing your loan balance faster and saving significant interest. For example, adding $100/month to a $240,000, 30-year loan at 6.5% saves over $40,000 in interest and pays off the loan 5 years early. Make sure to specify "apply to principal" when making extra payments. Even one extra payment per year can make a substantial difference over time.