Mortgage Calculator
Calculate your monthly mortgage payments and see a detailed breakdown of your loan.
Loan Details
Payment Summary
Principal and interest only
Total amount you will pay over the loan term
Total interest paid over loan term
Note:
This calculation is an estimate. Additional costs like property taxes, insurance, and PMI are not included in this calculation.
Understanding Your Mortgage Payment
Your monthly mortgage payment typically consists of four main components, often referred to as PITI:
- Principal: The portion of your payment that goes toward paying off your loan balance.
- Interest: The cost of borrowing money, calculated as a percentage of your loan balance.
- Taxes: Property taxes are often collected monthly and held in escrow.
- Insurance: Both homeowners insurance and, if required, private mortgage insurance (PMI).
Our calculator focuses on principal and interest payments. Remember to budget for taxes and insurance separately.
Factors That Affect Your Monthly Payment
Down Payment
A larger down payment reduces your loan amount and monthly payments. A down payment of 20% or more helps you:
- • Avoid private mortgage insurance (PMI)
- • Get better interest rates
- • Build instant equity in your home
- • Have lower monthly payments
Interest Rate
Your interest rate has a significant impact on your monthly payment. Rates depend on:
- • Your credit score
- • Market conditions
- • Loan term
- • Down payment amount
Tips for Lower Monthly Payments
Improve Your Credit Score
A higher credit score can help you qualify for lower interest rates. Focus on:
- • Paying bills on time
- • Reducing credit utilization
- • Checking for errors
- • Limiting new credit applications
Save for Down Payment
A larger down payment offers several benefits:
- • Lower monthly payments
- • Better interest rates
- • No PMI requirement
- • More equity upfront
Compare Lenders
Shop around for the best mortgage terms:
- • Compare multiple offers
- • Check different loan types
- • Review all fees
- • Consider local lenders
Common Mortgage Terms Explained
- Annual Percentage Rate (APR)
- The total yearly cost of your mortgage, including interest and fees, expressed as a percentage.
- Amortization
- The gradual repayment of your loan through regular monthly payments of principal and interest.
- Escrow
- An account where funds are held for property taxes and insurance payments.
- Private Mortgage Insurance (PMI)
- Insurance required when your down payment is less than 20%, protecting the lender against default.
- Points
- Upfront fees paid to lower your interest rate, with one point equal to 1% of your loan amount.
- Loan-to-Value Ratio (LTV)
- The percentage of your home's value that you're borrowing through your mortgage.