Mortgage Calculator
Calculate your monthly mortgage payments, total interest, and full PITI costs. Compare 15-year vs 30-year mortgages and see how down payment affects your payment.
How to Use This Calculator
Our mortgage calculator helps you understand your monthly payment and total cost of homeownership. Follow these steps for accurate results:
- Enter the home's purchase price - this is the total cost of the property you're considering.
- Input your down payment percentage (default is 20%). Putting down less than 20% typically requires PMI.
- Select your loan term - 30 years is most common, but 15-year mortgages have higher payments with much less total interest.
- Enter the interest rate you've been quoted or expect based on current market rates.
- Optionally, click 'Show Advanced Options' to include property taxes, homeowner's insurance, and HOA fees for a complete PITI payment estimate.
Why This Matters
Buying a home is likely the largest financial decision you'll ever make. Understanding your monthly mortgage payment helps you budget accurately and avoid becoming 'house poor' - where too much income goes toward housing. A mortgage calculator lets you experiment with different scenarios before committing to a purchase, helping you find a home price that fits your financial situation.
- Compare different home prices to see how they affect your monthly budget
- Understand the true cost of a mortgage including total interest paid over the loan term
- See how different down payment amounts affect your payment and PMI requirements
- Plan ahead by calculating PITI (Principal, Interest, Taxes, Insurance) for a complete picture
- Compare 15-year vs 30-year mortgages to see interest savings versus payment affordability
Worked Examples
First-Time Homebuyer
Sarah is buying her first home for $350,000 with 10% down at 6.5% interest on a 30-year mortgage.
Comparing Loan Terms
Mike is comparing 15-year vs 30-year mortgages for a $400,000 home with 20% down ($320,000 loan) at 6% interest.
Full PITI Calculation
The Johnsons are buying a $500,000 home with 20% down at 6.25%. Property tax is 1.2%, insurance is $200/month, and HOA is $150/month.
Common Mistakes to Avoid
- Only looking at the monthly P&I payment without including taxes, insurance, and HOA - your actual payment will be significantly higher.
- Forgetting about PMI when putting down less than 20% - this can add $100-300+ to your monthly payment.
- Not shopping around for interest rates - even 0.25% difference can save thousands over the loan term.
- Stretching to afford more house than you can comfortably pay - aim for housing costs under 28% of gross income.
- Ignoring closing costs (typically 2-5% of loan amount) when calculating how much cash you need.