Mortgage Calculator
Calculate home loan payments with taxes, insurance, and PMI
Loan Details
Additional Costs
30-Year Fixed
Most popular mortgage with stable payments
Pros:
- Lower monthly payments
- Predictable payments
- More cash flow
Cons:
- Higher total interest
- Slower equity building
15-Year Fixed
Faster payoff with higher monthly payments
Pros:
- Lower total interest
- Faster equity building
- Lower rates
Cons:
- Higher monthly payments
- Less cash flow
ARM (5/1)
Adjustable rate mortgage with initial fixed period
Pros:
- Lower initial rates
- Good for short-term ownership
Cons:
- Rate uncertainty
- Payment can increase
FHA Loan
Government-backed loan with lower down payment
Pros:
- Lower down payment (3.5%)
- Easier qualification
Cons:
- Mortgage insurance required
- Loan limits apply
Starter Home
Family Home
First-Time Buyer
Lender Fees
Third-Party Fees
Government Fees
Prepaid Items
Monthly Payment
Calculate principal, interest, taxes, insurance, and PMI
Amortization Schedule
Detailed payment breakdown by month and year
Total Cost Analysis
See total interest and lifetime cost of the loan
Affordability Analysis
Understand what you can afford with different scenarios
- Calculate affordability before house hunting
- Compare different loan terms and rates
- Plan for monthly budget including all costs
- Understand the impact of down payment size
- Evaluate refinancing opportunities
- Compare ARM vs fixed-rate mortgages
- Plan for PMI removal timeline
- Budget for property taxes and insurance
28% Rule
Your monthly housing payment should not exceed 28% of gross monthly income
36% Rule
Total monthly debt payments should not exceed 36% of gross monthly income
Emergency Fund
Maintain 3-6 months of expenses in savings after down payment
Down Payment
Save at least 20% to avoid PMI, or explore low down payment programs
Shop Around
Compare rates from multiple lenders. Even 0.25% difference can save thousands over the loan term.
Improve Credit Score
Higher credit scores qualify for better rates. Pay down debt and fix errors before applying.
Consider Points
Buying discount points can lower your rate if you plan to stay in the home long-term.
Understanding Mortgages
Your monthly mortgage payment consists of principal (paying down the loan balance) and interest (the cost of borrowing). Early payments go mostly toward interest, while later payments pay down more principal.
This amortization structure means you build equity slowly at first, then more rapidly as the loan matures.
Private Mortgage Insurance (PMI) is required when you put down less than 20%. It protects the lender if you default, typically costing 0.3% to 1.5% of the loan amount annually.
PMI can be removed when you reach 20% equity through payments or home appreciation, potentially saving hundreds per month.