Calculate mortgage payments instantly. Estimate monthly home loan payments including principal, interest, taxes, insurance, and PMI. See complete amortization schedule.
Enter your desired home price and down payment amount
Set your interest rate and choose loan term (15 or 30 years)
Add property tax, insurance, and HOA fees for accurate total
View your monthly payment breakdown and amortization schedule
Pro Tip: A 20% down payment helps you avoid PMI (Private Mortgage Insurance) costs.
PMI Required: Your down payment is less than 20%
Total Monthly Payment
$0
Including taxes & insurance
Principal & Interest
$0
Base loan payment
Loan Amount
$0
Total Interest
$0
Total Paid
$0
Payoff Date
-
| Year | Principal | Interest | Total Paid | Balance |
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Your interest rate significantly impacts your monthly payment and total loan cost. Even a 0.5% difference can save or cost you tens of thousands over the loan term.
Small changes in your mortgage strategy can lead to significant savings over time.
A mortgage is a loan specifically used to purchase real estate. When you take out a mortgage, you're borrowing money from a lender (usually a bank or credit union) to buy a home. The property itself serves as collateral for the loan, meaning if you fail to make payments, the lender can foreclose on the property.
Your monthly mortgage payment typically consists of four main components, often referred to as PITI:
The amount borrowed to purchase the home. Each payment reduces this balance.
The cost of borrowing money, calculated as a percentage of the remaining principal.
Annual taxes assessed by local government, usually paid monthly through escrow.
Homeowners insurance protects against damage; PMI protects the lender if down payment < 20%.
The monthly mortgage payment for principal and interest is calculated using this formula:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ-1]
Where:
M = Monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (loan term in years × 12)
For a $300,000 loan at 6% annual interest for 30 years:
The interest rate remains constant throughout the loan term. Most common terms are 15 and 30 years.
Pros: Predictable payments, protection from rate increases
Cons: Higher initial rates than ARMs, less flexibility
Interest rate adjusts periodically based on market conditions. Common types include 5/1, 7/1, and 10/1 ARMs.
Pros: Lower initial rates, potential for rate decreases
Cons: Payment uncertainty, potential for significant increases
Government-backed loan with lower down payment requirements (as low as 3.5%).
Pros: Lower down payment, easier qualification
Cons: Mortgage insurance required, loan limits apply
Available to eligible veterans, service members, and surviving spouses with no down payment required.
Pros: No down payment, no PMI, competitive rates
Cons: VA funding fee, eligibility requirements
Amortization is the process of paying off a loan through regular payments over time. In the early years of a mortgage, most of your payment goes toward interest. As time progresses, more of each payment goes toward reducing the principal balance.
💡 Pro Tip: Making just one extra mortgage payment per year can reduce a 30-year mortgage by approximately 4-6 years and save tens of thousands in interest.
Refinancing can save you money, but it's not always the right choice. Consider refinancing when:
A rate reduction of 0.75% or more typically justifies refinancing costs
Better credit can qualify you for lower rates than your original loan
Moving from an ARM to fixed-rate or from 30-year to 15-year term
If your home value has increased, refinancing can eliminate PMI
Remember: Calculate the break-even point by dividing closing costs by monthly savings. If you plan to stay in your home longer than this period, refinancing likely makes sense.