Mortgage Calculator
Everything You Need to Know to Buy Your Next Home with Confidence
How It Works
Using our mortgage calculator is simple. Just enter the following details:
Home Price – The total purchase price of the property.
Down Payment – The amount you’ll pay upfront (in dollars or percentage).
Loan Term – Choose your loan length (e.g., 15, 20, or 30 years).
Interest Rate – The annual percentage rate (APR) from your lender.
Property Taxes & Insurance (Optional) – Add estimated annual costs for more accurate results.
Why Use a Mortgage Calculator?
- Understand your true monthly costs
- Set a realistic home buying budget
- Compare different loan terms & interest rate
- Experiment with down payment amount
- Plan ahead for taxes and insurance
FAQs
1. How accurate is the mortgage calculator?
Our calculator provides a close estimate based on the numbers you input. For a fully accurate breakdown, it’s best to consult with a lender, who can factor in your credit score, debt-to-income ratio, and other financial details.
2. What is included in my monthly mortgage payment?
A typical monthly mortgage payment includes:
Principal – The portion of your payment that reduces the loan balance
Interest – What you pay the lender for borrowing the money
Taxes and Insurance – Optional, but recommended to include for a full picture
3. What is PMI and do I need to include it?
PMI (Private Mortgage Insurance) is required if your down payment is less than 20%. It protects the lender in case you default. Some calculators (including ours) offer an option to include estimated PMI in your monthly total.
4. How do taxes and insurance affect my payment?
Adding property taxes and homeowners insurance gives you a more accurate monthly cost. These are often rolled into your mortgage payment through an escrow account managed by your lender.
5. Should I use this before getting pre-approved?
Yes! This calculator helps you understand how much you may be comfortable spending. After using it, getting pre-approved will give you a firm number based on your financial situation.
6. What loan term should I choose — 15, 20, or 30 years?
The loan term affects both your monthly payment and the total interest paid over time:
15-Year Mortgage – Higher monthly payments but lower total interest. You build equity faster.
30-Year Mortgage – Lower monthly payments but more interest paid over the life of the loan.
20-Year or Custom Terms – A balance between the two.
7. Can I change my down payment amount later?
Yes, your down payment is flexible until you finalize your loan. A larger down payment reduces your loan amount, lowers monthly payments, and may help you avoid PMI. Try different down payment amounts in the calculator to see how it affects your payment.
8. How do interest rates affect my mortgage payment?
Even a small change in interest rate can make a big difference over time. For example, a 1% increase could add hundreds to your monthly payment or tens of thousands over the life of the loan. Use the calculator to test different rate scenarios and understand your options.