Mortgage Calculator
Calculate monthly payments, total interest, and amortization schedule for your home loan.
Calculate your monthly mortgage payment and see the breakdown of principal, interest, taxes, and insurance.
Monthly Payment Breakdown
See how your loan balance decreases over time with an amortization schedule.
| Year | Principal Paid | Interest Paid | Total Paid | Remaining Balance |
|---|
Compare different loan options to find the best mortgage for your needs.
Loan Option 1
Loan Option 2
Understanding Mortgage Payments
Your monthly mortgage payment typically consists of four components, often referred to as PITI:
Principal
This is the amount that goes toward paying off the original loan amount (the principal). Early in your mortgage, a smaller portion of your payment goes to principal, but this amount increases over time.
Interest
This is the cost of borrowing money from the lender. Early in your mortgage, a larger portion of your payment goes to interest, but this amount decreases over time.
Taxes
Property taxes are typically collected by your lender and held in an escrow account until they're due to be paid to your local government.
Insurance
This includes homeowners insurance and, if required, private mortgage insurance (PMI). Like property taxes, these are often collected by your lender and held in escrow.
Factors That Affect Your Mortgage Payment
Loan Amount
The amount you borrow after your down payment. A larger down payment means a smaller loan amount and lower monthly payments.
Interest Rate
The percentage charged by the lender for borrowing the money. Even a small difference in interest rate can significantly impact your monthly payment and total interest paid over the life of the loan.
Loan Term
The length of time you have to repay the loan. Common terms are 30, 20, and 15 years. Shorter terms typically have higher monthly payments but lower total interest costs.
Private Mortgage Insurance (PMI)
If your down payment is less than 20% of the home's value, you'll typically be required to pay PMI, which protects the lender if you default on the loan. PMI usually costs between 0.5% and 1% of the loan amount annually.
Types of Mortgages
Fixed-Rate Mortgage
The interest rate remains the same for the entire term of the loan, providing predictable monthly payments. This is the most common type of mortgage and is ideal for those planning to stay in their home for a long time.
Adjustable-Rate Mortgage (ARM)
The interest rate is fixed for an initial period (e.g., 5, 7, or 10 years) and then adjusts periodically based on market conditions. ARMs typically start with lower rates than fixed-rate mortgages but carry the risk of higher rates later.
FHA Loan
Insured by the Federal Housing Administration, these loans have more flexible qualification requirements and lower down payment options (as low as 3.5%). They require mortgage insurance premiums for the life of the loan in most cases.
VA Loan
Available to eligible veterans, active-duty service members, and some military spouses. VA loans often require no down payment and have competitive interest rates.
USDA Loan
Designed for rural and some suburban homebuyers with low to moderate incomes. USDA loans may require no down payment for eligible borrowers.
Jumbo Loan
Exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. Jumbo loans typically have stricter qualification requirements and higher interest rates.
Frequently Asked Questions
How much house can I afford?
A common rule of thumb is that your monthly housing costs (including mortgage, taxes, and insurance) should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36% of your gross monthly income.
What is an amortization schedule?
An amortization schedule shows how each mortgage payment is applied to principal and interest over the life of the loan. It demonstrates how your loan balance decreases over time and how the proportion of principal to interest changes with each payment.
How can I lower my monthly mortgage payment?
You can lower your monthly payment by making a larger down payment, extending the loan term, finding a lower interest rate, or eliminating PMI by reaching 20% equity in your home.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage typically has a lower interest rate and significantly reduces the total interest paid, but has higher monthly payments. A 30-year mortgage has lower monthly payments but costs more in total interest over the life of the loan. The best choice depends on your financial situation and goals.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate of how much you might be able to borrow based on self-reported information. Pre-approval is a more formal process where the lender verifies your financial information and credit history to determine how much they're willing to lend you.