Mortgage Calculator
Estimate your monthly mortgage payment based on your home price, down payment, loan term, interest rate, and other costs like taxes and insurance.
How to Use the Mortgage Calculator
In the calculator above, fill out the following fields to estimate your monthly mortgage payment based on your loan amount, interest rate, and other homeownership costs.
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Home Price
- Enter the expected purchase price of the home.
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Down Payment
- Input either a dollar amount or percentage of the purchase price. A higher down payment reduces the size of your loan.
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Loan Term
- Choose how long you'll take to repay the loan. Common options include 15, 20, and 30 years.
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Interest Rate
- Use the current average or your lender's quote.
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Property Taxes
- Input an estimate based on local tax rates or default values.
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Homeowners Insurance
- Estimate the annual premium, typically 0.5% to 1% of the home's value.
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PMI
- Required if your down payment is less than 20%.
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HOA Fees
- Enter monthly dues if the property is part of a homeowners association.
What's Included in a Mortgage Payment
A mortgage payment covers more than just repaying the loan; it includes several recurring housing costs that can vary by location and loan type.
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Principal
- The portion of your payment that reduces the loan balance.
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Interest Rate
- The lender's charge for borrowing the money.
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Property Taxes
- Local taxes based on the assessed value of the home.
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Homeowners Insurance
- Protects the home against damage or loss.
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PMI
- Private mortgage insurance applies if your down payment is below 20%.
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HOA Fees
- Monthly dues in managed communities or condo associations.
Try Different Mortgage Scenarios
One of the most powerful uses of a mortgage calculator is testing how different financial decisions can affect your monthly payment.
You can use the calculator to:
- Compare a 15-year vs. 30-year loan to see how monthly payments and total interest differ.
- Adjust your down payment to see whether you can eliminate PMI.
- Change the interest rate to evaluate how credit score or market shifts affect affordability.
- Include or remove taxes, insurance, or HOA fees to plan for total monthly costs.
Understanding the Loan Term and Interest Rate
The length of your loan and the interest rate you receive are two of the biggest factors in determining your monthly payment and total loan cost.
Shorter loan terms like 15 years have higher monthly payments but cost less overall because you pay less interest. Longer terms like 30 years lower the payment but increase the total interest paid. Your interest rate depends on your credit score, loan type, and market conditions.
Fixed-Rate vs Adjustable-Rate Mortgages (ARMs)
Choosing between a fixed-rate and adjustable-rate mortgage depends on your financial plans and how long you expect to own the home.
A fixed-rate mortgage keeps your rate and payment stable for the life of the loan. An adjustable-rate mortgage (ARM) offers a lower initial rate that adjusts over time. ARMs may suit short-term buyers or those planning to refinance, but they come with the risk of future rate increases.
How Much Should You Spend on a Mortgage?
Determining how much you can safely spend on a mortgage depends on your income, debt, and financial goals.
28/36 Rule
The 28/36 rule is a financial guideline that suggests spending no more than 28% of your gross monthly income on housing and 36% on all debts.
Example: If your gross monthly income is $6,000, 28% would be $1,680. Your total debt limit of 36% would be $2,160.
Mortgage Amortization Explained
Amortization is the process of repaying your mortgage over time through regular monthly payments that cover both principal and interest.
In the early years, most of your payment goes toward interest. Over time, more of the payment goes toward reducing the loan balance. An amortization schedule shows how your loan balance changes over time.
How to Lower Your Mortgage Payment
There are several strategies to reduce your mortgage payment without compromising your home purchase goals.
You can use the calculator to:
- Increase your down payment to reduce the loan amount.
- Choose a longer loan term to spread payments out.
- Compare lenders to find lower interest rates.
- Avoid PMI by putting down at least 20%.
- Consider buying in an area with lower taxes or insurance costs.
- Explore down payment assistance programs if you're a first-time buyer.
Common Mortgage Questions (FAQ)
These frequently asked questions help clarify important details about mortgages and monthly payments.
What does a mortgage payment include?
It typically includes principal, interest, property taxes, homeowners insurance, and—if required—PMI and HOA fees.
How much should I spend on a home?
Use income-based rules like the 28/36 rule or limit housing costs to 25% of take-home pay. A calculator can help estimate how much you can afford.
What is PMI and when can I remove it?
PMI is private mortgage insurance required on most loans with less than 20% down. It can usually be removed once you reach 20% equity in your home.
How does APR differ from interest rate?
The interest rate is the cost of borrowing money. APR includes that rate plus lender fees and closing costs for a more complete view of total loan cost.
Can I get a mortgage without a credit score?
Yes, through manual underwriting. You'll need to provide proof of income, rent history, and other financial information.
What's the difference between prequalification and preapproval?
Prequalification is a quick estimate based on self-reported info. Preapproval involves document verification and is a stronger signal to sellers.
Learn More about Mortgages
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The ins and outs of VA loans
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What is escrow?
"Escrow" is one of the many confusing terms hurled at consumers during the homebuying process, and it takes on a different meaning depending on which stage you are in.
What is escrow?
An escrow account keeps your money safe during one of the biggest financial transactions of your life. There are two kinds of escrow accounts: one when you buy and another when you take out a mortgage.When your offer is accepted, escrow is the deposit you put down, often called "earnest money."Usually, it’s 1 pe
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May 16, 2025
How big should your down payment be? Hint: It doesn't have to be 20%.
A down payment is when you pay a fraction of the cost of a home upfront and take out a loan to cover the rest.
You don’t have to put 20% down on a house
A common misconception is that 20% is the standard down payment on a house. That’s not the case, according to Melissa Cohn, regional vice president at William Raveis Mortgage.Instead, depending on what kind of mortgage you take out and what kind of homebuyer you are, you can pay as little as 3.5% down. And if you’re taking a mortgage from the