#mc-container {
background-color: #ffffff;
border: 1px solid #e2e8f0;
border-radius: 12px;
padding: 30px;
box-shadow: 0 4px 6px -1px rgba(0, 0, 0, 0.1), 0 2px 4px -1px rgba(0, 0, 0, 0.06);
margin-bottom: 40px;
}
.mc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.mc-grid {
grid-template-columns: 1fr;
}
}
.mc-input-group {
margin-bottom: 15px;
}
.mc-label {
display: block;
font-size: 14px;
font-weight: 600;
color: #4a5568;
margin-bottom: 8px;
}
.mc-input {
width: 100%;
padding: 12px;
border: 1px solid #cbd5e0;
border-radius: 6px;
font-size: 16px;
color: #2d3748;
box-sizing: border-box;
transition: border-color 0.2s;
}
.mc-input:focus {
outline: none;
border-color: #4299e1;
box-shadow: 0 0 0 3px rgba(66, 153, 225, 0.2);
}
.mc-button {
width: 100%;
background-color: #2b6cb0;
color: white;
border: none;
padding: 14px;
font-size: 16px;
font-weight: 700;
border-radius: 6px;
cursor: pointer;
transition: background-color 0.2s;
margin-top: 10px;
}
.mc-button:hover {
background-color: #2c5282;
}
#mc-results {
margin-top: 30px;
padding: 20px;
background-color: #f7fafc;
border-radius: 8px;
display: none;
}
.mc-result-row {
display: flex;
justify-content: space-between;
padding: 10px 0;
border-bottom: 1px solid #e2e8f0;
font-size: 15px;
color: #4a5568;
}
.mc-result-row:last-child {
border-bottom: none;
}
.mc-main-result {
text-align: center;
margin-bottom: 20px;
padding-bottom: 20px;
border-bottom: 2px solid #e2e8f0;
}
.mc-main-amount {
font-size: 36px;
font-weight: 800;
color: #2b6cb0;
display: block;
}
.mc-main-label {
font-size: 14px;
color: #718096;
text-transform: uppercase;
letter-spacing: 0.5px;
}
.mc-error {
color: #e53e3e;
font-size: 14px;
margin-top: 10px;
text-align: center;
display: none;
}
.mc-article h2 {
font-size: 24px;
color: #2d3748;
margin-top: 30px;
margin-bottom: 15px;
border-bottom: 2px solid #edf2f7;
padding-bottom: 10px;
}
.mc-article h3 {
font-size: 20px;
color: #4a5568;
margin-top: 25px;
margin-bottom: 10px;
}
.mc-article p {
line-height: 1.6;
color: #4a5568;
margin-bottom: 15px;
}
.mc-article ul {
margin-bottom: 20px;
padding-left: 20px;
color: #4a5568;
line-height: 1.6;
}
.mc-article li {
margin-bottom: 8px;
}
function calculateMortgage() {
var homePrice = parseFloat(document.getElementById('homePrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTerm = parseFloat(document.getElementById('loanTerm').value);
var propertyTax = parseFloat(document.getElementById('propertyTax').value);
var homeInsurance = parseFloat(document.getElementById('homeInsurance').value);
var errorMsg = document.getElementById('errorMsg');
var resultsDiv = document.getElementById('mc-results');
if (isNaN(homePrice) || isNaN(downPayment) || isNaN(interestRate) || isNaN(loanTerm) || isNaN(propertyTax) || isNaN(homeInsurance) ||
homePrice < 0 || downPayment < 0 || interestRate < 0 || loanTerm <= 0 || propertyTax < 0 || homeInsurance < 0) {
errorMsg.style.display = 'block';
resultsDiv.style.display = 'none';
return;
}
errorMsg.style.display = 'none';
// Core Calculations
var loanAmount = homePrice – downPayment;
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var monthlyPI = 0;
// Handle zero interest case
if (interestRate === 0) {
monthlyPI = loanAmount / numberOfPayments;
} else {
// Formula: M = P[r(1+r)^n]/[(1+r)^n – 1]
var x = Math.pow(1 + monthlyRate, numberOfPayments);
monthlyPI = (loanAmount * x * monthlyRate) / (x – 1);
}
var monthlyTax = propertyTax / 12;
var monthlyIns = homeInsurance / 12;
var totalMonthly = monthlyPI + monthlyTax + monthlyIns;
var totalPaymentAmount = monthlyPI * numberOfPayments;
var totalInterest = totalPaymentAmount – loanAmount;
// Calculate Payoff Date
var today = new Date();
var payoffYear = today.getFullYear() + parseInt(loanTerm);
var monthNames = ["Jan", "Feb", "Mar", "Apr", "May", "Jun", "Jul", "Aug", "Sep", "Oct", "Nov", "Dec"];
var payoffDateString = monthNames[today.getMonth()] + " " + payoffYear;
// Display Results
document.getElementById('monthlyTotal').innerText = formatCurrency(totalMonthly);
document.getElementById('monthlyPI').innerText = formatCurrency(monthlyPI);
document.getElementById('monthlyTax').innerText = formatCurrency(monthlyTax);
document.getElementById('monthlyIns').innerText = formatCurrency(monthlyIns);
document.getElementById('loanAmountResult').innerText = formatCurrency(loanAmount);
document.getElementById('totalInterestResult').innerText = formatCurrency(totalInterest);
document.getElementById('payoffDate').innerText = payoffDateString;
resultsDiv.style.display = 'block';
}
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
Understanding Your Mortgage Estimate
Using a mortgage calculator is the first essential step in the home-buying journey. It allows you to transform a large, intimidating home price into a manageable monthly budget item. This tool helps you understand exactly where your money is going—split between principal, interest, taxes, and insurance (often referred to as PITI).
While the "Home Price" is the headline number, your Interest Rate and Loan Term significantly impact the total cost of the loan. Even a small difference of 0.5% in your interest rate can save (or cost) you tens of thousands of dollars over the life of a 30-year mortgage.
Components of Your Monthly Payment
Most first-time homebuyers are surprised that their monthly check to the bank is for more than just the loan repayment. Here is a breakdown of what makes up the total figure calculated above:
- Principal: The portion of the payment that goes directly toward paying down the debt owed on the home.
- Interest: The fee charged by the lender for borrowing the money. In the early years of a mortgage, a large percentage of your payment goes toward interest rather than principal.
- Property Taxes: An annual tax levied by your local government, usually based on the assessed value of the property. Lenders often collect this monthly and pay it on your behalf.
- Homeowner's Insurance: Insurance that protects your home against damages like fire or theft. Like taxes, this is often escrowed into your monthly payment.
How to Lower Your Monthly Payments
If the estimated payment above is higher than your budget allows, consider these strategies:
- Increase Your Down Payment: Putting more money down reduces the principal loan amount, which lowers your monthly obligation and reduces total interest paid.
- Extend the Loan Term: Opting for a 30-year term instead of a 15-year term will lower monthly payments, though you will pay more interest over the life of the loan.
- Shop for Lower Rates: Your credit score heavily influences the interest rate offered. Improving your credit score before applying can secure a lower rate.
- Reassess Your Budget: Look for homes in areas with lower property taxes or lower insurance costs to reduce the non-mortgage portion of your monthly bill.
Frequently Asked Questions
Does this calculator include PMI?
This specific calculator focuses on PITI (Principal, Interest, Taxes, and Insurance). Private Mortgage Insurance (PMI) is typically required if your down payment is less than 20% of the home's value. PMI costs generally range from 0.5% to 1% of the loan amount annually.
How accurate are online mortgage calculators?
Online calculators provide excellent estimates for planning purposes. However, your final monthly payment may vary slightly based on the specific day of the month you close, exact insurance premiums, and final tax assessments by your local municipality. Always consult with a loan officer for a precise quote.
What is a "good" interest rate?
Interest rates fluctuate daily based on economic factors and the bond market. A "good" rate is generally one that is at or below the current national average for your credit profile. It is advisable to compare quotes from at least three different lenders.