Mortgage Calculator

🏠 Mortgage Calculator

What Is a Mortgage Calculator?

A mortgage calculator helps you estimate your monthly home loan payments , including principal, interest, taxes, and insurance (often referred to as PITI). It’s an essential tool for homebuyers, real estate investors , and anyone planning to finance a home.

Before speaking to a lender or making an offer on a house, use this calculator to understand what you can afford—and avoid surprises later.

🧮 How to Use This Calculator

Enter the following values to get your results:

1. Home Price – Total cost of the property you want to buy.

2. Down Payment – How much money you're paying upfront (either as an amount or percentage).

3. Loan Term – Common terms are 15, 20, or 30 years.

4. Interest Rate – The annual rate on your mortgage (APR).

5. Property Tax (Annual) – Optional, but helps calculate realistic monthly payment.

6. Homeowners Insurance (Annual) – Optional insurance estimate.

7. (Optional) HOA Fees – For homes in communities with Homeowners Associations.

Click “Calculate” to get:

• Your monthly payment

• A full breakdown of principal, interest, taxes, insurance, and fees

• Total loan cost over time

📊 Example Breakdown

Let’s say:

• Home Price: $350,000

• Down Payment: $70,000 (20%)

• Interest Rate: 6.5%

• Term: 30 years

• Property Tax: $3,000/year

• Insurance: $1,200/year

• HOA Fees: $50/month

👉 Your estimated monthly payment would be:

• Principal & Interest: ~$1,771

• Taxes: $250

• Insurance: $100

• HOA Fees: $50
  Total Monthly Payment: ~$2,171

💡 Why Monthly Payment Isn’t Just “Principal + Interest”

Many first-time buyers forget that property taxes, insurance, and fees can add hundreds of dollars to your monthly housing costs. Our calculator includes these to give you a real-world snapshot of your future budget.

It also helps you:

• Compare 15-year vs 30-year mortgages

• Understand how interest rate changes affect payments

• Adjust down payment scenarios and see the impact instantly

🧠 Mortgage Planning Tips

• Aim for 20% down: Avoids PMI (Private Mortgage Insurance) and lowers monthly payments.

• Get pre-approved before shopping: Know your realistic price range.

• Factor in closing costs: Usually 2–5% of the purchase price.

• Don’t forget maintenance: Budget for home repairs and unexpected expenses.

• Stay under 28% of income: Financial experts recommend your monthly housing cost should be less than 28% of your gross monthly income.

❓ Frequently Asked Questions (FAQs)

1. What’s included in a mortgage payment?

Typically:

• Principal – The loan amount

• Interest – The lender's charge for borrowing

• Taxes – Local property taxes

• Insurance – Homeowner’s insurance

• HOA Fees – If applicable

2. What is PMI?

Private Mortgage Insurance is often required if your down payment is less than 20%. It protects the lender, not you, and can add $50–$200/month to your payment.

3. How does a lower interest rate affect my payment?

Even a 0.5% lower interest rate can save you tens of thousands of dollars over a 30-year loan. Always shop around for the best rate!

✅ Final Thoughts

Buying a home is one of the biggest financial decisions you’ll make. Use our Mortgage Calculator to explore different scenarios, compare options, and understand what your real monthly payment will be.

The more informed you are, the more confident you’ll feel when signing on the dotted line.