Mortgage Calculator

Calculate your monthly mortgage payment with taxes, insurance, PMI, and HOA fees. Get instant results and understand your total homeownership costs.

What is a Mortgage Calculator?

A mortgage calculator is a powerful financial tool that estimates your monthly mortgage payments based on key inputs like home price, down payment, interest rate, and loan term. It also factors in additional costs such as property taxes, homeowners insurance, PMI (private mortgage insurance), and HOA fees to give you a complete picture of your monthly housing expenses.

This calculator provides detailed breakdowns of principal and interest payments, total costs over the life of the loan, amortization schedules, and payoff dates. It's an essential tool for homebuyers to assess affordability, compare different loan scenarios, and plan their budget without impacting their credit score.

Whether you're a first-time homebuyer, looking to refinance, or planning to make extra payments to save on interest, our mortgage calculator helps you make informed decisions about one of the biggest financial commitments of your life.

How to Use This Calculator

Enter the home price you're considering purchasing.
Input your down payment as a percentage or dollar amount (typically 20% to avoid PMI).
Select your loan term (15 or 30 years are most common).
Enter the annual interest rate (check current rates from lenders).
Optionally include property taxes, home insurance, PMI, and HOA fees for a complete monthly payment estimate.
Click 'Calculate Payment' to see your results, including monthly payment breakdown and total interest over the loan term.

Latest Mortgage Insights & Best Practices

Current Rate Environment: As of 2024-2025, mortgage rates remain elevated compared to historic lows. Use this calculator with current published rates from sites like mortgagecalculator.org to get accurate estimates.

PMI Considerations: If your down payment is less than 20%, you'll likely need PMI, which typically costs 0.3-1.9% of the loan amount annually. This is automatically removed once you reach 80% LTV (loan-to-value ratio).

Bi-Weekly Payments: Making bi-weekly payments instead of monthly can help you pay off your mortgage faster and save significantly on interest over the life of the loan.

Best practices include entering accurate data based on your expected APR and annual taxes/insurance, testing multiple scenarios (different rates, extra payments, loan terms), and including all escrow items for a realistic monthly payment estimate.

Remember that calculator results are educational estimates only and don't account for future rate changes or personal financial shifts. Always verify specifics with professional lenders and tax advisors for your location.

Understanding Mortgage Components

Principal & Interest

The principal is the amount you borrow, while interest is what the lender charges you to borrow that money. In the early years of your mortgage, most of your payment goes toward interest. As you pay down the principal, more of your payment goes toward reducing the loan balance.

Property Taxes

Property taxes are typically 0.5-2% of your home's value annually and vary by location. These are often collected monthly as part of your mortgage payment and held in an escrow account, then paid to your local government on your behalf.

Homeowners Insurance

Homeowners insurance protects your home and belongings from damage or theft. Lenders require this coverage, and premiums vary based on location, home value, and coverage level. Like property taxes, this is often included in your monthly mortgage payment.

Private Mortgage Insurance (PMI)

PMI is required when your down payment is less than 20% of the home's value. It protects the lender if you default on the loan. PMI typically costs 0.3-1.9% of the original loan amount per year and is automatically removed once you reach 20% equity (80% LTV).

HOA Fees

If you're buying a condo, townhouse, or home in a planned community, you may have to pay Homeowners Association (HOA) fees. These cover maintenance of common areas, amenities, and sometimes utilities. HOA fees can range from $100 to $700+ per month.

Frequently Asked Questions

How much house can I afford?

A general rule is that your monthly housing costs (including mortgage, taxes, and insurance) shouldn't exceed 28% of your gross monthly income. Use this calculator along with your income and debt information to determine a comfortable price range.

What's the difference between pre-qualification and pre-approval?

Pre-qualification is an estimate of how much you might be able to borrow based on self-reported financial information. Pre-approval is a more formal process where a lender verifies your finances and commits to lending you a specific amount. This calculator helps with pre-qualification.

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

A 15-year mortgage has higher monthly payments but significantly lower total interest costs. A 30-year mortgage has lower monthly payments but higher total interest. Use this calculator to compare both scenarios and see which fits your budget and goals.

How can I lower my monthly payment?

You can lower your monthly payment by: making a larger down payment (20%+ to avoid PMI), choosing a longer loan term, securing a lower interest rate, or buying mortgage points to reduce your rate. Test these scenarios in the calculator to see the impact.

What is an escrow account?

An escrow account is a separate account held by your lender where a portion of your monthly payment is deposited to cover property taxes and homeowners insurance. The lender then pays these bills on your behalf when they're due.

How do extra payments affect my mortgage?

Making extra payments toward your principal can significantly reduce the total interest you pay and shorten your loan term. Even small additional payments can save thousands of dollars over the life of the loan. Consider making one extra payment per year or adding a fixed amount to each monthly payment.