Mortgage Calculator
Calculate monthly mortgage payments.
About the Mortgage Calculator
Calculate monthly mortgage payments.
Understanding Your Mortgage
A mortgage is likely the biggest financial commitment you will ever make. Our Mortgage Calculator is designed to help you understand your monthly payments, interest costs, and payoff timeline before you sign on the dotted line.
How to Use This Mortgage Calculator
- Loan Amount: Enter the total amount you plan to borrow (Home Price minus Down Payment).
- Interest Rate: Input your expected annual interest rate. Even a small difference of 0.5% can save you thousands over the life of the loan.
- Loan Term: Choose how long you will be paying. Standard terms are 15 or 30 years.
15-Year vs. 30-Year Mortgage
One of the most common questions homebuyers have is whether to choose a 15-year or 30-year term. Here is the breakdown:
- 30-Year Fixed: Lower monthly payments, but you pay significantly more interest over time. Best for budget flexibility.
- 15-Year Fixed: Higher monthly payments, but you build equity faster and pay far less interest. Best for total savings.
Factors Affecting Your Mortgage Payment
Your monthly payment is typically referred to as PITI:
- Principal: The money that goes towards paying down the loan balance.
- Interest: The cost of borrowing the money.
- Taxes: Property taxes paid to your local government (often included in escrow).
- Insurance: Homeowners insurance to protect the property (required by lenders).
Note: This calculator focuses on Principal and Interest. Be sure to budget extra for Taxes and Insurance.
Why Calculating Early Matters
Using a mortgage calculator helps you set a realistic budget. Many buyers fall in love with a house only to realize later that the monthly payments—including high interest rates—are uncomfortable. By running the numbers first, you can shop with confidence.