Mortgage Calculator

How Our Mortgage Calculator Works

Our free mortgage calculator helps you estimate your monthly payment by considering:

• Home Price: The purchase price of the property
• Down Payment: Typically 10-20% of home price
• Interest Rate: Current market rates (varies by lender)
• Loan Term: 15 or 30 years most common
• Property Tax: Annual tax divided by 12
• Home Insurance: Required by lenders
• PMI: Private mortgage insurance if down payment < 20%

Why Use Our Calculator?

Complete Picture: Unlike basic calculators, we include taxes, insurance, and PMI to show your true monthly cost.

Amortization Schedule: See how much goes to interest vs principal each year.

Private: No signup required. Your data stays on your device.

Accurate: Uses standard mortgage formulas for reliable estimates.

Understanding Your Monthly Payment (PITI)

Lenders bundle four costs into a single monthly mortgage payment, often abbreviated PITI: Principal, Interest, Taxes, and Insurance. Most first-time buyers underestimate their true monthly cost by focusing only on principal and interest.

• Principal: The portion that pays down your actual loan balance.
• Interest: What you pay the lender for borrowing the money — highest early in the loan, shrinking over time as the balance drops.
• Taxes: Property taxes, usually collected monthly and held in escrow, then paid to your local government on your behalf.
• Insurance: Homeowners insurance (required by nearly all lenders) and, if your down payment is under 20%, private mortgage insurance (PMI) as well.

Early in a 30-year loan, most of each payment goes toward interest rather than principal — this is normal, and it's why an amortization schedule (like the one this calculator generates) is worth reviewing before you commit to a loan term.

Tips for Getting the Best Mortgage Rate

• Shop multiple lenders: Rates can vary meaningfully between lenders for the same borrower — getting quotes from at least 3-4 is standard advice from consumer finance regulators.
• Improve your credit score before applying: Even a modest score improvement can lower your rate, and a lower rate compounds into significant savings over a 30-year term.
• Consider your down payment size: Putting down 20% avoids PMI entirely; even smaller increases toward that threshold can reduce your monthly cost.
• Compare loan terms, not just rates: A 15-year loan usually carries a lower rate than a 30-year loan but a higher monthly payment — run both through this calculator to see the real tradeoff.
• Lock your rate once you're comfortable: Rates can move while you're shopping for a home; a rate lock protects the number you budgeted around.

Guides

The calculator gives you a number. These explain what to do with it.