Mortgage Calculator
Calculate your monthly mortgage payment including taxes, insurance, PMI, and HOA fees
How to Use This Mortgage Calculator
- Enter your home price (the total purchase price of the property)
- Input your down payment as a dollar amount or percentage
- Select your loan term (15, 20, or 30 years are most common)
- Enter the interest rate (check current rates with your lender)
- Toggle 'Include Taxes & Costs' to add property taxes, insurance, and PMI
- Click 'Calculate Mortgage' to see your monthly payment breakdown
Example: For a $350,000 home with 20% down ($70,000) at 6.5% interest for 30 years, your monthly principal and interest payment would be $1,769. Add taxes and insurance for the full picture.
Tip: Try different down payment amounts to see how they affect your monthly payment and total interest paid.
Why Use a Mortgage Calculator?
A mortgage calculator helps you make informed decisions before one of the biggest purchases of your life.
- Determine how much house you can afford before starting your search
- Compare 15-year vs 30-year loan terms to see interest savings
- Calculate the impact of different down payment amounts
- Understand how interest rate changes affect your payment
- Plan for total housing costs including taxes, insurance, and PMI
- Decide whether to refinance your current mortgage
Understanding Your Results
Your monthly payment should fit comfortably within your budget. Lenders typically follow the 28/36 rule.
| Result | Meaning | Action |
|---|---|---|
| Below 28% of income | Comfortable | You're in a strong position to afford this home |
| 28-36% of income | Stretching | Consider a larger down payment or lower price |
| Above 36% of income | Risky | Look at less expensive homes or wait to save more |
Meaning: Comfortable
Action: You're in a strong position to afford this home
Meaning: Stretching
Action: Consider a larger down payment or lower price
Meaning: Risky
Action: Look at less expensive homes or wait to save more
Note: The 28/36 rule means housing costs under 28% and total debt under 36% of gross monthly income.
About Mortgage Calculator
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, and n is number of payments.
Current Standards: Most lenders require a minimum 620 credit score for conventional loans. FHA loans may accept 580+. A 20% down payment avoids PMI (Private Mortgage Insurance).
Frequently Asked Questions
How accurate is this mortgage calculator?
This calculator provides accurate estimates for principal and interest based on standard amortization formulas. For taxes and insurance, add approximately 1-2% of home value annually. Your actual payment may vary slightly based on lender-specific fees and local tax rates.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significant interest over the loan life. A 30-year mortgage offers lower monthly payments and more flexibility. Use this calculator to compare both scenarios with your specific numbers.
How much house can I actually afford?
Aim for a total monthly payment (including taxes and insurance) under 28% of your gross monthly income. For a household earning $100,000/year, that's about $2,333/month maximum for housing costs.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5-1% of the loan amount annually. PMI can be removed once you reach 20% equity in your home.
How does the interest rate affect my total cost?
On a $300,000 loan over 30 years, the difference between 6% and 7% interest is about $200/month and over $70,000 in total interest. Even small rate differences add up significantly over time.