Mortgage Payment Calculator

How to Use This Mortgage Calculator

This free mortgage calculator helps you estimate your monthly mortgage payment, including principal, interest, property taxes, homeowner's insurance, and HOA fees.

1. Enter the home price — the total purchase price of the property.
2. Set your down payment — most conventional loans require 3-20% down. The more you put down, the lower your monthly payment.
3. Choose your interest rate — check current rates with your lender. The default is based on current market averages.
4. Select the loan term — 30-year terms have lower monthly payments; 15-year terms save significantly on interest.

Understanding Your Mortgage Payment

Your monthly mortgage payment typically includes four components, often called PITI:

• Principal — the portion that reduces your loan balance.
• Interest — the cost charged by the lender for borrowing money.
• Taxes — property taxes assessed by your local government, typically escrowed into your monthly payment.
• Insurance — homeowner's insurance that protects against damage and liability.

Tips for First-Time Home Buyers

• A larger down payment means smaller monthly payments and may help you avoid PMI (Private Mortgage Insurance).
• A 15-year mortgage typically has a lower interest rate than a 30-year, saving tens of thousands in interest.
• Don't forget to budget for closing costs, typically 2-5% of the loan amount.
• Get pre-approved before house hunting so you know exactly what you can afford.