🏠 Mortgage Calculator
Estimate your monthly payment, total interest, and view a full amortization schedule.
How to Use the Mortgage Calculator
Enter your home price, down payment amount, annual interest rate, and loan term to instantly see your estimated monthly principal and interest payment. For a complete picture, also fill in property tax, homeowners insurance, HOA fees, and PMI (required when your down payment is under 20%).
Understanding Your Monthly Payment (PITI)
Your full monthly housing cost is often referred to as PITI — an acronym for Principal, Interest, Taxes, and Insurance. Lenders use your total PITI payment when calculating your debt-to-income (DTI) ratio to determine whether you qualify for the loan.
- Principal: The portion of each payment that reduces your loan balance
- Interest: The lender's fee for lending you money, expressed as an annual percentage rate
- Taxes: Property taxes collected monthly and held in an escrow account
- Insurance: Homeowners insurance, also typically escrowed
- PMI: Private Mortgage Insurance — required by most lenders when your down payment is less than 20% of the home price
where r = monthly rate, n = number of payments
30-Year vs. 15-Year Mortgage: Which Is Right for You?
| Factor | 30-Year Fixed | 15-Year Fixed |
|---|---|---|
| Monthly Payment | Lower | Higher (~35–40% more) |
| Total Interest Paid | Significantly more | Dramatically less |
| Interest Rate | Slightly higher | Usually 0.5–0.75% lower |
| Equity Build-up | Slower | Faster |
| Best For | Maximum monthly cash flow | Minimizing total cost |
How to Interpret the Amortization Schedule
The amortization table shows every payment broken down into principal and interest. In the early years, the majority of each payment goes toward interest — this is why making extra principal payments in the first few years of a mortgage can save thousands of dollars and shorten your loan term significantly.
Tips for Getting the Best Mortgage Rate
- Check and improve your credit score before applying — even a 20-point increase can lower your rate
- Get quotes from at least 3–5 lenders and compare APRs, not just stated rates
- Consider paying discount points to permanently reduce your interest rate if you plan to stay long-term
- Lock in your rate once you find a favorable quote — mortgage rates can change daily
- Avoid opening new credit accounts or taking on new debt during the mortgage process