Mortgage Calculator
Calculate your monthly mortgage payment with principal, interest, taxes, and insurance included.
Calculate Your Mortgage
Estimate your monthly payment and total cost
Additional Costs (Optional)
Your Monthly Payment
$2,245
30-year fixed at 6.500%
$1,770
per month
$350
per month
$125
per month
$0
per month
Loan Summary
$280,000
Loan Amount
$637,125
Total Payments
$357,125
Total Interest
80%
Loan-to-Value
How to Use This Calculator
Enter the home price - the total purchase price of the property you're considering. This is the amount before any down payment.
Specify your down payment amount. The calculator will show the percentage automatically. A 20% down payment avoids PMI requirements.
Adjust the interest rate to match current market rates or the rate your lender has quoted you. Even small rate differences significantly impact total cost.
Include optional costs like property tax, insurance, and HOA fees to see your true monthly housing cost.
Understanding Your Results
Monthly payment shows your total housing cost including principal, interest, taxes, insurance, and HOA fees. This is what you'll actually pay each month.
Total interest is the total amount you'll pay in interest over the life of the loan. A shorter term or lower rate reduces this significantly.
Loan-to-value (LTV) ratio shows what percentage of the home value you're borrowing. Lower LTV means more equity and potentially better rates.
15-Year vs 30-Year Mortgage
A 15-year mortgage typically offers interest rates 0.5-0.75% lower than 30-year loans. While monthly payments are higher, you'll pay significantly less interest over the life of the loan and build equity faster.
A 30-year mortgage has lower monthly payments, giving you more flexibility in your budget. This can be advantageous if you invest the difference or need cash flow for other goals.
Example: On a $300,000 loan at 7% interest, a 15-year mortgage costs $2,696/month with $185,000 total interest. A 30-year mortgage costs $1,996/month but $418,000 total interest - more than double.
Tips for First-Time Home Buyers
Get pre-approved first. A mortgage pre-approval shows sellers you're serious and tells you exactly how much house you can afford before you start shopping.
Don't forget closing costs. Budget 2-5% of the loan amount for closing costs on top of your down payment. On a $300,000 home, that's $6,000-$15,000 extra.
Consider all costs. Your mortgage payment isn't your only expense. Factor in property taxes, insurance, maintenance (1-2% of home value annually), and potential HOA fees.
Shop around for rates. Getting quotes from 3-5 lenders can save you thousands over the life of your loan. Even a 0.25% rate difference matters significantly.
Frequently Asked Questions
How is monthly mortgage payment calculated?
Monthly mortgage payment is calculated using the amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan amount, r is the monthly interest rate, and n is the number of payments. This gives you the principal and interest portion. Add property tax, insurance, and HOA for your total monthly payment.
How much down payment do I need for a house?
While 20% down payment is traditional to avoid PMI, you can put down as little as 3-5% for conventional loans or 0% for VA loans. A larger down payment means lower monthly payments and less interest paid over time.
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI typically costs 0.5-1% of the loan amount annually and can be removed once you reach 20% equity.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significantly on interest. A 30-year mortgage has lower payments but costs more over time. Choose based on your monthly budget and long-term financial goals.
How much house can I afford on my salary?
A common guideline is the 28/36 rule: spend no more than 28% of gross monthly income on housing costs, and no more than 36% on total debt. On a $75,000 salary, that's about $1,750/month for housing, which supports roughly a $300,000-$350,000 home depending on rates and down payment.
What credit score do I need to buy a house?
Minimum credit scores vary by loan type: FHA loans require 580+ (or 500 with 10% down), conventional loans typically need 620+, and the best rates go to borrowers with 740+. Higher scores mean lower interest rates and significant savings over the life of the loan.
What are closing costs and how much should I expect?
Closing costs are fees paid when finalizing your mortgage, typically 2-5% of the loan amount. They include appraisal fees, title insurance, attorney fees, and prepaid items like property taxes and insurance. On a $300,000 loan, expect $6,000-$15,000 in closing costs.
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