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Calculate your monthly mortgage payment including principal, interest, property taxes, homeowners insurance, PMI, and HOA fees. Get a complete breakdown of your home loan costs.
$60,000
This calculator provides estimates only. Actual mortgage terms, rates, and costs may vary based on your credit profile, lender policies, property location, and market conditions. Property taxes and insurance costs are estimates and vary by location. PMI rates and removal requirements may differ by lender. For binding quotes and personalized terms, consult mortgage lenders directly.
Calculations assume fixed-rate mortgages with standard amortization. Adjustable-rate mortgages (ARMs), interest-only loans, and other specialized products may have different payment structures. Always verify all rates, fees, and terms with your lender before making financial decisions.
A mortgage calculator is a financial planning tool that calculates your monthly home loan payment, including principal, interest, property taxes, insurance, PMI, and HOA fees. Enter your home price, down payment, interest rate, and loan term to see your complete monthly housing costs, total interest paid, and full amortization schedule. Essential for home buyers planning their purchase budget and comparing different loan scenarios.
Use our mortgage calculator to make informed home buying decisions:
Fixed-Rate Mortgage - Interest rate remains constant for the entire loan term (15, 20, or 30 years), providing predictable monthly payments and protection from rate increases
Adjustable-Rate Mortgage (ARM) - Interest rate changes periodically based on market conditions, typically starting with a lower rate than fixed mortgages but carrying the risk of payment increases
Interest-Only Mortgage - Pay only interest for an initial period (5-10 years), then begin paying principal and interest. Lower initial payments but no equity building during the interest-only phase
FHA Loan - Government-backed loan allowing down payments as low as 3.5% with more lenient credit requirements, ideal for first-time buyers but requires mortgage insurance premiums
VA Loan - Available to veterans and active military, offering 0% down payment, no PMI, and competitive rates. Requires VA funding fee but provides excellent terms for qualified borrowers
Monthly Payment - Your total PITI payment (Principal, Interest, Taxes, Insurance) plus PMI and HOA fees. This is the amount due each month to your lender and escrow account
Total Cost of Ownership - The complete amount you'll pay over the loan's lifetime, including the home price, all interest, property taxes, insurance, and fees
Total Interest - The cumulative interest paid over the entire loan term. This can equal or exceed your original loan amount on 30-year mortgages
Amortization Schedule - A detailed breakdown of every payment showing how much goes to principal versus interest. Early payments are mostly interest; later payments are mostly principal
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 (years × 12). Property taxes, insurance, and PMI are added to this base payment.
A general rule is that your monthly housing payment (PITI + HOA) should not exceed 28% of your gross monthly income, and your total debt payments should stay below 36%. For example, with a $6,000 monthly income, target a maximum $1,680 housing payment and $2,160 total debt. However, consider your lifestyle, savings goals, and job stability. Use this calculator to test different home prices and down payments to find your comfortable payment range. Remember to account for maintenance costs (1-2% of home value annually), utilities, and furnishings beyond your mortgage payment.
The ideal down payment is 20% of the home's purchase price. This threshold eliminates PMI (saving $100-300+ monthly), qualifies you for better interest rates (potentially 0.25-0.5% lower), demonstrates financial stability to lenders, and builds instant equity. However, many successful homeowners put down less: FHA loans require just 3.5%, conventional loans 3-5%, and VA loans 0%. If putting down less than 20%, ensure you can comfortably afford the PMI premium and higher monthly payment. Build an emergency fund of 3-6 months expenses before buying, regardless of your down payment size.
This depends on your financial priorities and cash flow. A 15-year mortgage has significantly higher monthly payments (roughly 50% more) but saves enormously on interest - often $100,000-200,000+ on a typical home. Choose 15-year if: you can comfortably afford higher payments, want to be mortgage-free faster, are close to retirement, or plan to stay in the home long-term. Choose 30-year if: you need lower payments for cash flow flexibility, want to invest the difference in higher-return opportunities, are stretching your budget, or value financial flexibility. A middle ground: take a 30-year mortgage but make extra principal payments when you can, maintaining payment flexibility during tight months.
Your total monthly mortgage payment includes several components: 1) Principal & Interest (P&I) - calculated using the standard amortization formula based on your loan amount, interest rate, and term. This portion is constant on fixed-rate mortgages. 2) Property Taxes - typically 1/12 of your annual property tax bill, escrowed by your lender. Varies by location (0.5-2.5% of home value annually). 3) Homeowners Insurance - 1/12 of your annual premium, also escrowed. Required by all lenders. 4) PMI - if down payment is less than 20%, typically 0.3-1.5% of original loan amount annually. 5) HOA Fees - if applicable, paid separately or escrowed. This complete payment is often called PITI (Principal, Interest, Taxes, Insurance).
PMI (Private Mortgage Insurance) protects the lender if you default on your loan. It's required when your down payment is less than 20% (loan-to-value ratio above 80%). PMI costs 0.3-1.5% of your original loan amount annually ($50-300+ monthly on a $300,000 loan). You pay PMI until your loan balance reaches 78% of the home's original value, at which point it's automatically removed. You can request removal at 80% LTV. To eliminate PMI faster: make extra principal payments, request a new appraisal if your home has appreciated significantly, or refinance once you have 20% equity. FHA loans have mortgage insurance for the life of the loan (unless you put down 10%+, then 11 years), while VA loans have no PMI at all.
Total interest depends on your loan amount, interest rate, and term length. On a 30-year $300,000 mortgage at 6.5% interest, you'll pay approximately $384,000 in interest - more than the original loan amount. On a 15-year term at the same rate, you'd pay only $158,000 in interest - a $226,000 savings. Every 1% increase in interest rate costs tens of thousands over a 30-year loan. The good news: you can dramatically reduce interest by making extra principal payments, refinancing to a lower rate when possible, or choosing a shorter loan term. Use this calculator's amortization schedule to see exactly how much interest you'll pay and how extra payments impact the total.
Lenders typically use the 28/36 rule: your housing payment should be ≤28% of gross income, and total debt payments ≤36%. However, this is just a starting point. Consider: your job stability, savings cushion (maintain 3-6 months emergency fund), other financial goals (retirement, children's education), lifestyle priorities, and comfort with debt. A conservative approach is to ensure your mortgage payment (PITI + HOA) is less than 25% of your take-home pay, leaving room for maintenance, utilities, savings, and unexpected expenses. If you're stretching to the maximum lender approval, you may be house-poor with little financial flexibility. Use this calculator to model different scenarios and stress-test with higher property taxes or insurance costs.
Closing costs typically range from 2-5% of the home's purchase price ($6,000-15,000 on a $300,000 home). They include: 1) Loan origination fees (0.5-1% of loan amount), 2) Appraisal ($400-600), 3) Title insurance and search ($1,000-2,000), 4) Attorney fees ($500-1,500), 5) Home inspection ($300-500), 6) Credit report and underwriting fees ($300-500), 7) Recording fees and transfer taxes (varies by location), 8) Prepaid property taxes and insurance (2-6 months). Some lenders offer 'no closing cost' loans where they cover these fees in exchange for a slightly higher interest rate (typically 0.25% higher). This can make sense if you plan to refinance within 5-7 years. Always request a Loan Estimate within 3 days of applying to see your specific closing costs.
The best time to buy a home depends on your personal circumstances more than market timing. Buy when: you have stable income and job security, you've saved a solid down payment (ideally 20%) plus emergency fund, you plan to stay in the area for 5+ years (to absorb closing costs and build equity), you can comfortably afford the monthly payment, and you're emotionally ready for homeownership responsibilities. Market conditions matter less than your personal readiness. If current interest rates are high, you can refinance later when rates drop - but you can't go back and buy at today's home prices if they increase. As the saying goes: 'Marry the house, date the rate.' Focus on finding the right home at a payment you can afford, knowing you can refinance if rates improve. Use this calculator to model different rate scenarios.