Mortgage Payment Calculator
$
$
%
30 Years
20 Years
15 Years
10 Years
$
$
$
$
Your Estimated Monthly Payment
$0.00
Principal & Interest:
$0.00
Property Taxes:
$0.00
Home Insurance:
$0.00
PMI:
$0.00
HOA Fees:
$0.00
Loan Amount:
$0.00
Total Interest Paid:
$0.00
Understanding Your Mortgage Calculation
Purchasing a home is one of the most significant financial decisions you will make. This Mortgage Payment Calculator helps you estimate your monthly financial commitment by factoring in principal, interest, taxes, and insurance (often referred to as PITI).
Key Components of Your Monthly Payment
- Principal: The portion of your payment that goes toward paying down the loan balance.
- Interest: The cost of borrowing money, calculated based on your interest rate and remaining loan balance.
- Property Taxes: Taxes assessed by your local government, typically based on the value of your property. These are often collected by the lender in an escrow account.
- Homeowners Insurance: Insurance that covers damages to your home and liability. Like taxes, this is often paid through escrow.
- PMI (Private Mortgage Insurance): Usually required if your down payment is less than 20% of the home's value. It protects the lender if you default.
How Interest Rate Affects Your Payment
Even a small difference in interest rates can have a massive impact on your monthly payment and the total cost of the loan. For example, on a $300,000 loan, a 1% increase in interest rate can increase your monthly payment by hundreds of dollars and your total interest paid by over $60,000 over the life of a 30-year loan.
30-Year vs. 15-Year Mortgages
While a 30-year mortgage offers lower monthly payments, a 15-year mortgage will save you significantly on interest. Use the "Loan Term" dropdown in the calculator above to compare how the term length changes your monthly obligation and total interest costs.
Tips for Lowering Your Payment
To reduce your monthly mortgage burden, consider increasing your down payment to avoid PMI, shopping around for a lower interest rate, or purchasing points to buy down your rate. Additionally, improving your credit score before applying can qualify you for better terms.