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.
- Enter the home price — the total purchase price of the property.
- Set your down payment — most conventional loans require 3-20% down. The more you put down, the lower your monthly payment.
- Choose your interest rate — check current rates with your lender. The default is based on current market averages.
- 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.