Calculate your monthly mortgage payments, total interest, and amortization schedule - Plan your home purchase with confidence and compare loan options
Use our mortgage calculator to instantly estimate monthly payments, total interest, and amortization by entering home price, down payment, loan term, interest rate, taxes, insurance, and HOA fees. Example: $350,000 home, 20% down, 30-year loan at 6.5% → ~$2,200/month including PITI. Extra principal payments, bi-weekly payments, and refinancing can save tens of thousands. Key tips: 20% down avoids PMI, 15-year loans cut interest, credit 720+ gets best rates, budget 1-2% of home value/year for maintenance, compare lenders and APR, and avoid big purchases before closing.
Buying a home is one of the biggest financial decisions you'll ever make. This mortgage calculator helps you understand exactly what you'll pay each month and over the life of your loan. Let me walk you through how to use it effectively.
This is the total purchase price of the home you're considering. For example, if you're looking at a $350,000 home, enter that amount. Don't subtract your down payment here - the calculator will do that for you. Need help determining what you can afford? Try our Home Affordability Calculator.
The amount you'll pay upfront. Traditionally, 20% is recommended to avoid PMI (Private Mortgage Insurance), but many buyers put down less. On a $350,000 home, 20% would be $70,000. The calculator shows you what percentage you're putting down. If you're saving for a down payment, check out our Savings Goal Calculator to plan your timeline.
How long you'll take to pay off the mortgage. 30 years is most common because it has lower monthly payments, but 15-year mortgages save you significantly on interest. A 20-year term is a middle ground option. Use our Loan Calculator to compare different term lengths side by side.
The annual interest rate on your loan. As of 2025, rates typically range from 6% to 8% depending on your credit score, down payment, and market conditions according to Freddie Mac's Primary Mortgage Market Survey. Even a 0.5% difference can mean tens of thousands of dollars over the life of the loan. Check current rates at Bankrate or NerdWallet.
Annual property taxes vary widely by location. In Texas, you might pay 1.8% of home value annually ($6,300 on a $350,000 home), while in Hawaii it might be only 0.3% ($1,050). Check your local rates online or ask your real estate agent. For detailed property tax information by state, visit Investopedia's Property Tax Guide.
Annual homeowners insurance typically costs $1,000-$2,000 for most homes, but varies based on location, home value, and coverage. Coastal areas and regions prone to natural disasters cost more. Get quotes from multiple insurers to find the best rate.
If you're buying a condo or in a planned community, you'll likely pay monthly Homeowners Association fees. These can range from $50 to $500+ per month depending on amenities and services provided.
Your total monthly payment includes four main components, often called PITI:
In the early years of your mortgage, most of your payment goes toward interest. As time goes on, more goes toward principal. This is called amortization. See the detailed breakdown with our Amortization Calculator.
The total interest you'll pay over the life of the loan can be shocking. On a $280,000 loan at 6.5% for 30 years, you'll pay approximately $355,000 in interest - more than the original loan amount! Calculate your total interest costs with our Interest Calculator.
This is why:
Sarah is buying her first home in Austin, Texas. Here's her situation:
Result:
Sarah will pay $754,200 in interest over 30 years. However, once she reaches 20% equity, she can remove PMI, saving $157/month.
Mike and Jennifer are selling their starter home and buying a larger house. They have:
Result:
They'll pay $510,080 in interest over 30 years. No PMI required because they put 20% down.
Let's compare the same $300,000 loan at 6.5% interest:
30-Year Mortgage:
15-Year Mortgage:
The Difference: By paying $717 more per month, you save $212,220 in interest and own your home 15 years sooner! This is why many financial advisors recommend 15-year mortgages if you can afford the higher payment.
When I bought my first home, I was overwhelmed by the process. Here's what to expect:
Conventional Loans:
FHA Loans:
VA Loans:
USDA Loans:
Jumbo Loans:
Fixed-Rate Mortgage:
Adjustable-Rate Mortgage (ARM):
Example: A 5/1 ARM has a fixed rate for 5 years, then adjusts annually. If you're certain you'll sell within 5 years, you could save thousands with the lower initial rate.
Even small extra payments make a huge difference. On a $300,000 loan at 6.5% for 30 years:
Use our Mortgage Payoff Calculator to see how extra payments impact your loan.
Instead of 12 monthly payments, make 26 bi-weekly payments (half your monthly amount every two weeks). You'll make one extra payment per year, which can:
If interest rates drop 0.75% or more below your current rate, refinancing might save you money. Calculate:
Example: Refinancing a $300,000 loan from 7% to 6% saves $179/month. With $6,000 in closing costs, you break even in 34 months. If you plan to stay longer, it's worth it. Use our Refinance Calculator to determine if refinancing makes sense for you.
Your credit score dramatically affects your interest rate and monthly payment. Example on $300,000 loan:
On a $300,000 loan, the difference between 6.5% and 8% is $337/month and $121,320 over 30 years! Improve your score by: paying bills on time, paying down credit cards, and not opening new credit. Use our FICO's Loan Savings Calculator to see the impact.
Don't accept the first offer. Get quotes from at least 3-5 lenders as recommended by the Consumer Financial Protection Bureau (CFPB):
Rates can vary by 0.5% or more between lenders - that's thousands of dollars! Compare offers using our Loan Comparison Calculator.
Pre-qualification is just an estimate. Pre-approval means the lender has verified your finances and committed to lending you money. Sellers take pre-approved buyers much more seriously.
Just because you're approved for $400,000 doesn't mean you should spend that much. Lenders don't know about your other financial goals, lifestyle expenses, or desire to save for retirement. A good rule: keep your housing payment under 28% of gross income.
Closing costs typically run 2-5% of the purchase price. On a $350,000 home, that's $7,000-$17,500! Budget for:
A $400-$600 inspection can save you from buying a money pit. I once almost bought a house with $30,000 in foundation issues that the inspection caught.
Don't buy a car, open new credit cards, or make large purchases between pre-approval and closing. Lenders re-check your credit right before closing, and new debt can kill your loan approval.
Budget 1-2% of home value annually for maintenance and repairs. On a $350,000 home, that's $3,500-$7,000 per year. Things break: roofs, HVAC systems, water heaters, appliances. Plan ahead with our Budget Calculator.
Lenders typically use this guideline recommended by CFPB:
Example: If you earn $80,000/year ($6,667/month):
If you have $300/month in car payments and $200/month in student loans, your maximum mortgage payment would be $1,900 ($2,400 - $500). Calculate your debt-to-income ratio with our DTI Calculator.
Many financial advisors recommend being more conservative:
With a fixed-rate mortgage, your payment stays the same, but the split between principal and interest changes dramatically.
Example: $300,000 loan at 6.5% for 30 years ($1,896 monthly payment)
Year 1:
Year 10:
Year 20:
Year 30:
Notice how in the first year, 86% of your payment is interest! By year 20, it's only 54%. This is why extra principal payments in the early years have such a huge impact.
Minimum scores vary: Conventional 620+, FHA 580+ (or 500+ with 10% down), VA 620+, USDA 640+. Higher scores (720+) get better rates. Learn more from FICO's Credit Score Guide.
20% down is ideal to avoid PMI, but FHA 3.5%, Conventional 3%, VA/USDA $0. Larger down payments lower monthly payments and interest. Use our Down Payment Calculator.
PMI protects the lender if you default. Costs 0.5-1% of loan annually. Avoid by putting 20% down, using VA loans, or piggyback loans. Request removal after 20% equity.
30-year: lower monthly, more interest. 15-year: higher monthly, less interest, faster equity. Choose based on your budget and goals.
PITI: Principal, Interest, Taxes, Insurance. May include PMI (<20% down) and HOA fees.
Most mortgages allow extra principal payments without penalties. Extra payments save interest and shorten the loan. Bi-weekly payments create one extra payment per year.
2-5% of purchase price. Includes origination fees, appraisal, title insurance, attorney fees, recording fees, prepaid taxes/insurance. Some costs are negotiable.
Pre-qualification: quick estimate, self-reported info. Pre-approval: lender verifies income, assets, credit. Pre-approval shows sellers you're serious.
Escrow holds money for taxes and insurance. Lender pays bills from escrow monthly, ensuring timely payments.
Request removal at 20% equity via payments, appreciation, or renovations. PMI automatically ends at 78% LTV.
Proof of income, assets, credit info, employment verification, ID, and property info. Self-employed: business tax returns, bank statements, CPA letter.
Typically 30-45 days. Faster for cash purchases. Delays may occur due to appraisal, inspection, title, or lender processing.
Rate lock guarantees your interest rate for a period (30-60 days) during processing. Use if rates are rising. Float-down options may allow adjustment.
Pay points (1% upfront reduces rate ~0.25%) if staying long-term. Break-even example: $3,000 upfront saves $47/month on $300,000 loan.
DTI = total monthly debts ÷ gross monthly income. Lower DTI = better rates. Lenders prefer <36% total, <28% housing.
Pre-qualification: rough estimate. Pre-approval: verified by lender. Conditional: approved pending conditions (appraisal, title, employment). Final approval after all conditions met.
Compare APR, loan estimate forms, interest rate, closing costs, points, loan term, loan type, monthly payment, and lender reputation. Shop 3-5 lenders within 14-45 days.
Late fees 1-30 days. 30+ days: credit impact. 90+ days: foreclosure risk. Contact lender immediately to avoid damage.
Yes, but requires 2 years self-employment records, tax returns, bank statements, CPA letter, strong credit, larger down payment.
Buyer takes over seller’s existing mortgage. Keeps same interest rate, balance, and terms. Popular for VA and FHA loans.
Pay half the monthly payment every 2 weeks → 26 half-payments = 13 monthly payments. Saves interest and pays off loan faster.
30-year fixed: 6.5-7.5%, 15-year fixed: 5.75-6.75%, 5/1 ARM: 6-7%, FHA: 6.25-7.25%, VA: 6-7%. Rates depend on credit, down payment, loan type.
Fixed-rate: same interest entire term, stable. ARM: lower initial rate, adjusts later. Good if selling before adjustment or expecting higher income.
Interest rate: cost to borrow. APR: includes fees + interest. Compare APRs to see true loan cost.
Higher credit score = lower interest rate. Example on $300,000 loan: 760+ = 6.5%, 660 = 7.25%. Lower scores cost more in interest.
FHA loans: backed by FHA, ideal for first-time buyers or lower credit scores. 580+ credit, 3.5% down, debt-to-income <43%. Requires mortgage insurance.
Guaranteed by VA for military. $0 down, no PMI, competitive rates, limited closing costs. Requires COE and service eligibility.
Refinance if rates drop 0.75-1%, want shorter term, remove PMI, or tap equity. Calculate break-even to ensure savings.
Loans above conforming limits ($766,550 in 2024). Usually 20% down, 700+ credit score, stricter requirements, higher rates.
Property Value × Tax Rate ÷ 12 = Monthly Tax. Rates vary by location: Texas 1.8%, California 0.76%, New Jersey 2.49%.
1-2% of home value annually. Example: $350,000 home = $3,500-$7,000/year. Includes repairs, appliances, utilities, landscaping.
Use this mortgage calculator to:
Remember, the house you can afford isn't necessarily the house you should buy. Leave room in your budget for savings, retirement, emergencies, and enjoying life. Your home should be a blessing, not a financial burden.
Take your time, run the numbers, and make a decision you'll be comfortable with for years to come. For more financial planning tools, explore our Investment Calculator, ROI Calculator, and Break-Even Calculator. Happy house hunting!
For additional mortgage information and current rates, visit these trusted sources:
