Mortgage Calculator
Estimate. Compare. Mortgage Made Easy.
Loan Details
Results
| Loan Amount | $0.00 |
| Down Payment | $0.00 |
| Loan Term | 0 years |
| Interest Rate | 0% |
| Property Tax Rate | 1.2% |
| Property Tax | $0.00/month |
| Home Insurance | $0.00/month |
| PMI | $0.00/month |
Understanding Your Mortgage
What is a Mortgage?
A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral for the loan. The borrower agrees to pay back the loan amount plus interest over a set period of time through regular monthly payments.
Key Mortgage Terms
- Principal: The original amount of money you borrow to buy your home.
- Interest: The cost of borrowing money, expressed as a percentage rate.
- Term: The length of time you have to repay the loan (typically 15 or 30 years).
- Amortization: The process of paying off your loan through regular payments over time.
- Down Payment: The initial payment you make when purchasing a home, usually a percentage of the home price.
How Mortgage Payments Work
Each mortgage payment consists of four components, often referred to as PITI:
- Principal: The portion that reduces your loan balance.
- Interest: The cost of borrowing the money.
- Taxes: Property taxes that are often collected with the payment.
- Insurance: Homeowner's insurance (and possibly PMI if your down payment was less than 20%).
This calculator focuses on principal and interest payments. In the early years of your mortgage, most of your payment goes toward interest. As time passes, more of your payment goes toward reducing the principal.
How Interest Rates Affect Your Payment
Even small differences in your interest rate can significantly impact your monthly payment and the total amount you'll pay over the life of the loan. For example:
- A $300,000 loan at 3.5% for 30 years would have a monthly payment of $1,347 and total interest of $184,968.
- The same loan at 4.5% would have a monthly payment of $1,520 and total interest of $247,220.
That's a difference of $173 per month and $62,252 in total interest!
The Power of Additional Payments
Making even small additional principal payments can significantly reduce the total interest you pay and shorten your loan term. For example, adding $100 to each monthly payment on a $300,000 loan at 4% could save you $33,000 in interest and pay off your loan 4 years early.
How to Use This Mortgage Calculator
This tool helps you estimate your monthly mortgage payments, total interest, and the full cost of homeownership. Follow these steps:
- Home Price ($): Enter the total purchase price of the home you're buying.
- Down Payment: Enter how much you plan to pay upfront. You can enter the dollar amount directly or adjust the percentage slider to calculate it automatically.
- Loan Term (years): Select the length of your mortgage loan (e.g., 15, 20, 30 years).
- Interest Rate (%): Use the slider to input the annual interest rate you expect to receive from your lender.
- Property Tax Rate (%): Input your local annual property tax rate (often 0.5% - 2.5% depending on region).
- Home Insurance ($/year): Add an estimate for your annual homeowner's insurance premium.
- PMI (%): If your down payment is less than 20%, enter the Private Mortgage Insurance (PMI) rate (commonly 0.3%-1.5%).
- Start Date: Choose the expected starting month of your mortgage.
- Click "Calculate Mortgage": The results section will display:
- Principal & Interest: Your core loan repayment per month.
- Total Monthly Payment: Includes taxes, insurance, and PMI if applicable.
- Total Interest: How much you'll pay in interest over the full term.
- Total Cost: The total cost of the home including all payments.
- Summary Table: A breakdown of loan details like term, interest, and insurance.
- Review Detailed Results: Scroll to view:
- Amortization Schedule: Yearly breakdown of interest, principal, and remaining balance.
- Payment Breakdown Chart: Visual summary of your cost distribution.
- Export to PDF: Click the "Export to PDF" button to download a full report of your mortgage calculation.
Tip: Adjust down payment and loan term to see how it affects your monthly payment and interest paid.
Frequently Asked Questions
It helps you estimate monthly costs, plan your budget, and make better financial decisions when buying or refinancing a home.
Principal, interest, property taxes, homeowners insurance, and possibly PMI (if your down payment is under 20%).
PMI (Private Mortgage Insurance) protects the lender if you default on your loan. It's usually required if you put down less than 20%.
- Increase your down payment
- Choose a longer loan term
- Shop for a lower interest rate
- Remove PMI by refinancing or paying down principal
Yes! You can enter estimates for property taxes and insurance to get a full picture of your monthly costs.