Mortgage Calculator

Calculate your monthly mortgage payment, total interest, and compare different loan scenarios. Get accurate estimates for your home purchase planning.

Annuity Loan: Fixed monthly payment throughout the loan. Interest portion decreases over time.

Total purchase price of the property

Amount you pay upfront • Loan amount will be $240,000

Extra amount paid every month

How It Works

1. Enter Home Price

Start by entering the total price of the home you want to purchase. This is the full purchase price before any down payment.

2. Add Down Payment

Enter your down payment amount. A larger down payment reduces your loan amount and monthly payments. Most lenders require at least 3-20% down.

3. Set Interest Rate

Enter the annual interest rate offered by your lender. Current rates vary based on market conditions, credit score, and loan type.

4. Choose Loan Term

Select your loan term (typically 15 or 30 years). Shorter terms mean higher monthly payments but less total interest paid.

Examples

Example 1: 30-Year Fixed Mortgage

Home Price: $400,000 Down Payment: $80,000 (20%) Loan Amount: $320,000 Interest Rate: 7.0% Loan Term: 30 years Monthly Payment: $2,129.21 Total Interest Paid: $446,516.57 Total Amount Paid: $766,516.57 With a 20% down payment, you avoid PMI (Private Mortgage Insurance) and get better interest rates.

Example 2: 15-Year Fixed Mortgage

Home Price: $400,000 Down Payment: $80,000 (20%) Loan Amount: $320,000 Interest Rate: 6.5% Loan Term: 15 years Monthly Payment: $2,787.74 Total Interest Paid: $181,792.92 Total Amount Paid: $501,792.92 A 15-year mortgage has higher monthly payments but saves $264,723 in interest compared to a 30-year term.

Frequently Asked Questions

What is included in a mortgage payment?

A typical mortgage payment includes four components (PITI): Principal (loan amount), Interest (cost of borrowing), property Taxes, and home Insurance. Some mortgages also include PMI (Private Mortgage Insurance) if your down payment is less than 20%.

How much should my down payment be?

While the traditional down payment is 20% of the home price, many loan programs accept as little as 3-5%. A 20% down payment avoids PMI and typically secures better interest rates. However, smaller down payments can help you buy sooner if you have limited savings.

What is a good mortgage interest rate?

Mortgage rates change daily based on economic conditions. As of 2024, rates typically range from 6-8% for conventional loans. Your specific rate depends on your credit score, down payment, loan type, and current market conditions. Shop around with multiple lenders to find the best rate.

Should I choose a 15-year or 30-year mortgage?

A 30-year mortgage has lower monthly payments but costs more in total interest. A 15-year mortgage builds equity faster and saves significantly on interest but requires higher monthly payments. Choose based on your budget, financial goals, and how long you plan to stay in the home.

How accurate is this mortgage calculator?

This calculator provides accurate estimates for principal and interest payments. However, your actual payment may vary based on property taxes, homeowners insurance, HOA fees, and PMI. Contact a lender for an official pre-approval and exact payment details.