Mortgage Calculator
Estimate your monthly mortgage payments, total interest, and view a full amortization schedule. Enter your home price, down payment, interest rate, and loan term to get a detailed breakdown of your monthly payments.
Understanding Mortgage Payments
A mortgage payment typically consists of four components, known as PITI: Principal, Interest, Taxes, and Insurance. Understanding each component helps you budget effectively and compare loan offers from different lenders.
How Mortgage Amortization Works
In the early years of a mortgage, most of your monthly payment goes toward interest rather than reducing the principal balance. As you pay down the loan, the interest portion decreases and more of your payment goes toward principal. This process is called amortization, and understanding it can help you decide whether refinancing or making extra payments makes sense.
Key Factors That Affect Your Mortgage
- Down payment size: A larger down payment reduces your loan amount and may eliminate the need for private mortgage insurance (PMI).
- Interest rate: Even a 0.25% difference in rate can save tens of thousands of dollars over the life of the loan.
- Loan term: A 15-year mortgage has higher monthly payments but significantly lower total interest compared to a 30-year term.
- Property location: Property tax rates vary significantly by state and municipality, affecting your total monthly payment.
How to Use This Calculator
Enter the home price, your planned down payment, the offered interest rate, and your loan term. You can also include annual property tax and insurance estimates for a more accurate total monthly payment figure. The calculator will display your payment breakdown, total interest over the life of the loan, and a complete amortization schedule.