How to Calculate Your Mortgage
Fill in your details below. Here's what to enter:
- Home price
- Your down payment amount
- Loan length - pick 15, 20, or 30 years
- Interest rate
- Annual property tax
- Annual insurance cost
- HOA fees
What's in Your Monthly Payment
Principal and Interest Breakdown
Principal is the loan amount; interest is what the lender charges you for borrowing it. Early on, most of your payment goes to interest. Later, you're paying down the actual loan.
Property Tax
Property tax goes to local government based on your home's value. Lenders collect it monthly so you don't miss the payment and risk losing your house.
Insurance
Insurance covers damage to the home - you can't get a mortgage without it. Most lenders collect the yearly premium in 12 monthly payments.
Your Total Payment Each Month
Add up principal, interest, property tax, insurance, and HOA fees. That's your total payment.
Before You Buy
- Put down 20% to skip PMI
- Shorter loans = higher payment but way less interest
- Compare rates from 3+ lenders
- Budget 1-2% yearly for maintenance
- Pre-approval makes your offer stronger
Mortgage Terms Explained
What's an Escrow Account?
An escrow account holds money for your property tax and insurance. Your lender collects extra money each month and puts it in this account. When tax and insurance bills come due, they pay them from the escrow. It's required by most lenders.
Fixed vs Adjustable Rate
Fixed rate means your interest rate never changes. You'll pay the same amount for 15 or 30 years. Adjustable rate (ARM) starts lower but can go up or down based on market rates. Most people pick fixed because it's predictable.
Closing Costs
Closing costs are fees you pay when buying a house. Usually 2-5% of the home price. These cover things like appraisal, title search, and lender fees. You pay them upfront at closing. Some lenders let you roll them into the loan.
Questions People Ask
What's in the monthly payment?
Principal, interest, property tax, and home insurance. Add HOA fees if your property has them.
What's PMI and when do I pay it?
Private Mortgage Insurance. You'll pay it if your down payment is under 20% of the home price. Once you've paid down the loan to 80% of the home's value, PMI drops off.
15 or 30 year loan - which is better?
With 30 years, your monthly payment is lower. With 15 years, you pay off the house faster and save on interest, but each payment is bigger.
How much down payment do I need?
20% down skips PMI. You can put down less, though. Minimum down payment depends on the loan type.
What interest rate should I use for this calculator?
Use the rate your lender quoted you. Rates depend on your credit score and shift constantly with the market.
About This Calculator
This calculator shows your monthly mortgage payment. It includes the loan payment, property tax, insurance, and fees. Interest rates change constantly. Use your lender's current rate for the most accurate number. Final payment depends on your specific loan terms.