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Plan your home purchase with our comprehensive mortgage calculator. Calculate monthly payments, total interest, and see a detailed amortization schedule including property tax, insurance, and PMI.
Enter home price, down payment, and interest rate to calculate your mortgage
A mortgage is likely the largest financial commitment most people make in their lifetime. Understanding how mortgage payments are calculated, how interest affects your total cost, and how different loan terms impact your monthly budget is essential for making informed home-buying decisions.
Our mortgage calculator uses the standard amortization formula to determine your monthly principal and interest payment. It also accounts for additional costs like property taxes, homeowners insurance, HOA fees, and PMI (Private Mortgage Insurance required when your down payment is less than 20%). This gives you a complete picture of your actual monthly housing cost.
Your down payment percentage significantly affects your mortgage in multiple ways. A 20% down payment eliminates PMI, reduces your loan amount and total interest paid, and often qualifies you for better interest rates. Even small changes in interest rates can have huge impacts over the life of a 30-year loan—a 1% rate difference on a $300,000 mortgage can cost over $60,000 in additional interest.
Consider comparing 15-year versus 30-year mortgages. While 15-year loans have higher monthly payments, they typically offer lower interest rates and save enormous amounts in total interest. Use our calculator to explore different scenarios and find the mortgage structure that best fits your financial goals.
Pre-qualification is an informal estimate of what you can borrow. Pre-approval involves credit checks and documentation review, providing a firm commitment from a lender. Pre-approval strengthens your offer when buying.
20% down eliminates PMI and often gets better rates, but many successful buyers put down 3-10%. Consider your cash reserves, other debts, and whether saving more delays homeownership benefits.
15-year mortgages have higher monthly payments but lower rates and save massive interest. 30-year loans offer flexibility and lower payments. Consider your income stability, other financial goals, and retirement timeline.