Mortgage Calculator

Your monthly mortgage payment is calculated using the principal (loan amount), interest rate, and loan term. It may also include property taxes, homeowners insurance, and private mortgage insurance (PMI) if applicable. The formula used is based on amortization, which spreads payments evenly over the loan term.

A 15-year mortgage has higher monthly payments but you'll pay less interest overall and own your home faster. A 30-year mortgage has lower monthly payments but you'll pay more interest over the life of the loan. The right choice depends on your financial situation and goals.

PMI (Private Mortgage Insurance) is typically required when your down payment is less than 20% of the home's purchase price. It protects the lender in case you default on the loan. PMI can add 0.5% to 1% of the loan amount to your annual mortgage costs.

A larger down payment reduces your loan amount, which means lower monthly payments and less interest paid over the life of the loan. It may also help you qualify for a lower interest rate and avoid PMI if your down payment is 20% or more of the home's value.

Beyond your mortgage payment, consider closing costs (2-5% of home price), moving expenses, home maintenance and repairs, property taxes, homeowners insurance, HOA fees (if applicable), and utilities. It's wise to budget 1-2% of your home's value annually for maintenance.

Yes, you can typically pay off your mortgage early by making extra payments toward the principal. However, some mortgages have prepayment penalties, so check your loan terms. Even small additional payments can significantly reduce the total interest paid and shorten the loan term.