This mortgage calculator will help you estimate your monthly mortgage payments based on the home price, down payment, loan term, and interest rate. It provides a detailed breakdown of the principal and interest components of each payment and can include additional costs like property taxes and insurance. It also includes the ability to add extra payments and see the impact.
Your mortgage payment and other information will update automatically as you enter and change your mortgage details.
If you have any issues or suggestions about this calculator, let us know.
Mortgage Calculator Help Guide
Inputs
- Home Price: The total purchase price of the home you’re interested in buying.
- Down Payment ($ and %): The amount of money you will pay upfront towards the purchase of the home. You can input this as either a dollar amount or as a percentage of the home price.
- Loan Term (years): The duration over which you will repay the loan, typically in years.
- Interest Rate (%): The annual interest rate of the mortgage.
- Property Tax (Yearly): The annual property tax amount. This is optional and is used for a more comprehensive monthly payment estimate.
- Home Insurance (Yearly): The yearly cost of insurance for the home. This is also optional.
- HOA Fees (Monthly): Monthly or yearly homeowner association fees, if applicable.
- PMI (Monthly): Private Mortgage Insurance, if required, typically when the down payment is less than 20% of the home price.
- Extra Payments: You can choose to add monthly or annual monthly payments. These payments will impact your total monthly payment and your total loan interest, and will also shorten you payoff period.
Outputs
- Total Monthly Payment: The total amount you will pay each month, including principal, interest, and any additional costs like taxes, insurance, HOA fees, and PMI.
- Monthly Principal & Interest: This shows the portion of your monthly payment that goes towards repaying the loan (principal) and the interest on the loan.
- Total Loan Interest: The total amount of interest you will pay over the entire term of the loan.
- Taxes, Fees & Insurance: If you have entered any values for taxes fees and insurance they will increase your total payment and the amounts will be displayed in the outputs.
- Extra Payment Impact
- Years to Pay Off – The number of years and months until the loan is paid in full. The more extra you pay, the sooner the loan will be paid off.
- Total Interest Saved – The amount of interest you avoid paying by making extra payments.
- Amortization Schedule: A detailed table showing the breakdown of each monthly payment into principal and interest components, as well as the remaining balance after each payment.
- Loan Balance Chart: A graphical representation of how your loan balance decreases over the term of the mortgage.
Frequently Asked Mortgage Questions
How do I qualify for a mortgage?
Qualification depends on your income, credit history, employment history, debt levels, down payment, and the property’s value.
What is the difference between a fixed-rate and an adjustable-rate mortgage?
A fixed-rate mortgage has a constant interest rate and monthly payments that never change. An adjustable-rate mortgage (ARM) has a rate that may change at specific times and intervals.
What are closing costs?
Closing costs are fees associated with finalizing a mortgage. They can include appraisal fees, title insurance, and attorney fees, among others.
How large of a mortgage can I afford?
This depends on your income, existing debt, credit history, and other financial factors. Lenders typically use a debt-to-income ratio to determine this.
Lenders typically look at your DTI to assess your ability to manage monthly payments and repay debts. A DTI ratio of 36% is commonly recommended, but some lenders may allow higher ratios. This ratio includes all debt payments, not just the mortgage.
A common rule of thumb is that your mortgage payment should not exceed 28% of your gross monthly income. This includes the principal, interest, property taxes, and homeowner’s insurance.
What documents do I need to apply for a mortgage?
Common documents include proof of income, tax returns, credit history, and identification.
What is pre-approval, and should I get pre-approved?
Pre-approval is a lender’s initial evaluation of your creditworthiness. It’s beneficial as it gives you a better idea of how much you can borrow and shows sellers that you are a serious buyer.
What is the difference between interest rate and APR?
The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate. The annual percentage rate (APR) includes the interest rate and any additional costs or prepaid finance charges.
What is private mortgage insurance (PMI)?
PMI is a type of insurance that protects the lender if you stop making payments on your loan. It’s typically required if your down payment is less than 20% of the home’s value.
Can I refinance my mortgage?
Yes, refinancing is the process of obtaining a new mortgage to reduce monthly payments, lower your interest rates, take cash out of your home for large purchases, or change mortgage companies.
How long does the mortgage process take?
The process can vary but typically takes from a few weeks to a couple of months, depending on various factors like loan type, documentation, and appraisal times.
What types of mortgages are available?
Common types include conventional loans, FHA loans, VA loans, and USDA loans, each with its own qualifications and rules.
Can I pay off my mortgage early?
Usually yes, though some lenders may charge a prepayment penalty.
What should I consider when choosing a mortgage lender?
Consider factors like interest rates, fees, customer service, and the lender’s reputation. It’s often beneficial to shop around and compare offers from multiple lenders.
