How to Use Our Mortgage Calculator
Our free mortgage calculator helps you estimate your monthly mortgage payment and determine how much house you can afford. Simply enter your home price, down payment, loan term, and interest rate to get an instant calculation of your monthly payment including principal, interest, taxes, and insurance (PITI).
Monthly Payment Calculator
Use the monthly payment calculator to estimate your mortgage payment based on:
- Home Price: The total purchase price of the property
- Down Payment: Amount you pay upfront (typically 10-20% of home price)
- Loan Term: Length of your mortgage (15, 20, 25, or 30 years)
- Interest Rate: Annual percentage rate (APR) for your mortgage
- Property Tax: Annual property tax amount
- Home Insurance: Annual homeowners insurance premium
Home Affordability Calculator
The purchase budget calculator helps you determine the maximum home price you can afford based on your desired monthly payment. This reverse mortgage calculator is perfect for first-time homebuyers who want to set a realistic budget.
Understanding Mortgage Payments
Your total monthly mortgage payment typically includes four main components, often referred to as PITI:
Principal and Interest
The principal is the amount you borrowed to buy your home, while interest is what you pay the lender for borrowing the money. Early in your mortgage term, most of your payment goes toward interest. Over time, more of your payment goes toward principal.
Property Taxes
Property taxes are assessed by local governments and vary by location. These are typically collected monthly with your mortgage payment and held in an escrow account.
Homeowners Insurance
Lenders require homeowners insurance to protect their investment. Your insurance premium is usually collected monthly and held in escrow.
Private Mortgage Insurance (PMI)
If your down payment is less than 20%, you'll likely need to pay PMI, which protects the lender if you default on your loan. PMI can be removed once you reach 20% equity in your home.
Mortgage Calculator Tips
Factors That Affect Your Mortgage Rate
- Credit Score: Higher scores typically qualify for better rates
- Down Payment: Larger down payments often result in lower rates
- Loan Term: Shorter terms usually have lower rates but higher monthly payments
- Debt-to-Income Ratio: Lower ratios indicate better ability to repay
- Loan Type: Conventional, FHA, VA, and USDA loans have different rate structures
How to Lower Your Monthly Payment
- Increase your down payment to reduce the loan amount
- Choose a longer loan term (though this increases total interest paid)
- Improve your credit score before applying
- Shop around with multiple lenders for the best rates
- Consider paying points to buy down your interest rate
Frequently Asked Questions
What is a good debt-to-income ratio for a mortgage?
Most lenders prefer a debt-to-income ratio of 43% or lower, though some may accept up to 50% depending on other factors like credit score and down payment.
How much should I put down on a house?
While 20% is traditional, many loans allow for lower down payments. FHA loans require as little as 3.5% down, while VA loans may require no down payment for eligible veterans.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but lower total interest costs. A 30-year mortgage has lower monthly payments but higher total interest over the life of the loan.
What's included in closing costs?
Closing costs typically range from 2-5% of the loan amount and include appraisal fees, title insurance, loan origination fees, and other settlement costs.
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