Mortgage Calculator
Calculate your monthly payments, total interest, and loan breakdown
Our comprehensive mortgage calculator helps you estimate monthly payments, understand total costs, and plan your home purchase. Input your loan details to see a complete breakdown of principal, interest, taxes, and insurance (PITI). Whether you're a first-time homebuyer or refinancing, this calculator provides accurate estimates to help make informed decisions about your mortgage.
Understanding Your Mortgage Payment
Principal & Interest
The base loan payment that goes toward your loan balance and interest charges. Early payments are mostly interest, while later payments are mostly principal.
Property Taxes
Annual property taxes are typically divided into monthly payments and held in escrow by your lender. These vary by location and property value.
Insurance
Includes homeowner's insurance and possibly Private Mortgage Insurance (PMI) if your down payment is less than 20%.
Escrow Account
A separate account where your lender holds funds for taxes and insurance, ensuring these important payments are made on time.
Down Payment Guide
20% or More Down Payment
- Avoid PMI requirements
- Lower monthly payments
- Better interest rates
- More equity upfront
FHA Loans (3.5% - 10%)
- Lower credit score requirements
- Mandatory mortgage insurance
- Good for first-time buyers
- Higher overall costs
Tips for Lower Mortgage Payments
Before Applying
- Improve your credit score
- Save for a larger down payment
- Pay off existing debts
- Research different lenders
During Application
- Compare multiple loan offers
- Negotiate closing costs
- Consider different loan terms
- Lock in your interest rate
Understanding Mortgage Terms
APR vs. Interest Rate
While the interest rate represents the cost of borrowing the principal loan amount, APR includes both the interest rate and other loan costs such as broker fees, discount points, and some closing costs.
Fixed vs. Adjustable Rates
Fixed-rate mortgages maintain the same interest rate throughout the loan term, while adjustable-rate mortgages (ARMs) have rates that can change periodically based on market conditions.
Points and Credits
Mortgage points are fees paid directly to the lender at closing in exchange for a reduced interest rate. One point costs 1% of your mortgage amount and typically reduces your rate by 0.25%.