Mortgage Calculator

Calculate mortgage payments including principal, interest, taxes, and insurance (PITI). Compare loan terms, analyze amortization schedules, and plan home financing.

Mortgage Calculator

Calculate monthly mortgage payments, analyze affordability, and view amortization schedules

Loan Details

Purchase price of the home

%

$70,000

%

Additional Costs

$250 per month

$100 per month

%

Required if down payment < 20% (LTV > 80%)

Additional principal payment

Affordability Check

Before taxes and deductions

Mortgage Summary

Total Monthly Payment

$2,120

Principal, Interest, Taxes, Insurance

Loan Amount

$280,000

80.0% LTV

Total Interest

$357,125

Over life of loan

Monthly Payment Breakdown

Principal & Interest:$1,770
Property Tax:$250
Home Insurance:$100
Total Monthly:$2,120

Affordability Analysis

Housing Ratio: 26.5% of income
Monthly Income: $8,000
Recommended: Keep housing costs below 28% of income
Status: Excellent - Well within guidelines

Payoff Information

Payoff Date: July 2055
Total Cost: $707,125
Total of Payments: $637,125

1Understanding Mortgage Basics

See the true cost of homeownership beyond monthly payments. Compare 15 vs 30-year terms, visualize interest savings with extra payments, and understand how rate changes impact your budget. In today's financial landscape, understanding how to properly calculate and manage mortgage is crucial for making informed decisions that can significantly impact your financial future. This comprehensive guide will walk you through everything you need to know, from basic concepts to advanced strategies that financial professionals use.

What You Need to Know

Before diving into calculations, it's essential to understand the key components and terminology. This knowledge will help you make more accurate calculations and better financial decisions. Key factors include interest rates, payment terms, fees, and various financial regulations that may apply to your specific situation.

Common Mistakes to Avoid

Many people make costly errors when dealing with mortgage. These include: • Not considering all associated fees and costs • Failing to account for tax implications • Overlooking the impact of timing on calculations • Using outdated rates or incorrect assumptions • Not comparing multiple scenarios


2Making Smart Financial Decisions

Using this calculator effectively can help you optimize your financial strategy and potentially save thousands of dollars over time.

When to Use This Calculator

This tool is particularly valuable when: • Planning major financial decisions • Comparing different options or scenarios • Negotiating better terms or rates • Evaluating the long-term impact of financial choices • Creating budgets and financial projections

Maximizing Your Results

To get the most value from your calculations: 1. Always use current, accurate data 2. Consider multiple scenarios 3. Factor in all related costs 4. Think long-term, not just immediate impact 5. Consult with professionals for complex situations


3Money-Saving Strategies

Discover proven strategies to reduce costs and optimize your financial decisions.

Reducing Total Costs

Strategic approaches to minimize expenses: • Compare multiple options and providers • Negotiate better terms and rates • Time your decisions for optimal market conditions • Take advantage of special programs or incentives • Consider tax implications and benefits

Long-term Planning

Think beyond immediate needs: • Project future scenarios • Build in flexibility for changes • Create contingency plans • Review and adjust regularly • Seek professional advice for complex situations

This comprehensive guide is regularly updated to ensure accuracy. Last reviewed: 7/25/2025

Frequently Asked Questions

Are the mortgage rates shown real-time?

Yes! We display live mortgage rates from official economic data sources, updated daily. Current rates shown include 30-year and 15-year fixed mortgages. You can click "Use Rate" to apply the current market rate to your calculation.

What is included in my monthly mortgage payment?

Your payment typically includes Principal, Interest, property Taxes, and Insurance (PITI). Some loans also include PMI (Private Mortgage Insurance) and HOA fees.

How does the loan term affect my payment?

15-year mortgages have higher monthly payments but less total interest. 30-year mortgages have lower payments but more total interest over the loan life. Our calculator shows current rates for both terms.

When should I refinance my mortgage?

Consider refinancing when rates drop 0.5-1% below your current rate, your credit improves significantly, or you want to change loan terms. Check our live rates to see if refinancing makes sense.

What credit score do I need for a mortgage?

Most conventional loans require a minimum credit score of 620. FHA loans accept scores as low as 580 with 3.5% down, or 500 with 10% down. Better scores get better rates.

How much should I put down on a house?

20% down avoids PMI and gets better rates. However, many loans accept less: FHA (3.5%), VA (0%), USDA (0%), and conventional (3-5%). Consider your financial situation.

What is PMI and when can I remove it?

Private Mortgage Insurance protects lenders when you put down less than 20%. You can request removal at 20% equity (80% LTV), and it automatically terminates at 22% equity.