Mortgage Calculator
Estimate your monthly home loan payments.
20.0% of home price
Additional Costs
This estimate does not include property taxes, homeowners insurance, or HOA fees, which are typically bundled into a monthly escrow payment. These can add $200–$800+ to your final monthly bill.
Understanding Your Mortgage
A mortgage is likely the largest financial commitment you'll ever make. Even a small difference in your interest rate can save or cost you tens of thousands of dollars over the life of the loan.
Principal vs. Interest
In the early years of your mortgage, the majority of your monthly payment goes toward paying off the interest. As the loan progresses, more of your payment begins to go toward the principal (the actual balance of the home). This process is known as amortization.
Tips for Lower Payments
- Bigger Down Payment: Aiming for 20% down eliminates the need for Private Mortgage Insurance (PMI), saving you $100–$300 per month.
- Improve Your Credit: A higher credit score qualifies you for lower interest rates, significantly reducing your monthly payment.
- Shorten the Term: A 15-year mortgage usually has a lower interest rate than a 30-year one, though the monthly payments will be higher.
The "Hidden" Costs
"Rule of thumb: Budget 1% of your home's value annually for maintenance and repairs. If you buy a $400k home, expect to spend $4k/year on upkeep."
How to Use
- Enter the Home Price you are looking at.
- Input your Down Payment. The calculator will show you the percentage of the total price.
- Select your Loan Term (30 years is most common).
- Enter the current Interest Rate offered by your lender.
- Review the Monthly Payment and the total amount of interest you'll pay over the life of the loan.
Frequently Asked Questions
What is a fixed-rate mortgage?
A fixed-rate mortgage ensures your interest rate stays the same for the entire life of the loan, protecting you from future market rate hikes.
What is PMI?
Private Mortgage Insurance (PMI) is usually required if your down payment is less than 20%. it protects the lender if you default on the loan.
Can I pay my mortgage off early?
Yes, most modern mortgages allow for extra principal payments, which can drastically reduce the total interest you pay and shorten the loan by years.
How much house can I afford?
A common rule is the 28/36 rule: your mortgage payment shouldn't exceed 28% of your gross monthly income, and total debt shouldn't exceed 36%.