Mortgage Calculator
Calculate your monthly mortgage payment based on home price, down payment, interest rate, and loan term. See a full amortization schedule.
How Is This Calculated?
The mortgage payment is calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1] Where: • M = Monthly payment • P = Principal loan amount (home price minus down payment) • r = Monthly interest rate (annual rate ÷ 12) • n = Total number of payments (years × 12) This formula ensures each monthly payment covers both interest and principal, gradually paying off the loan over the full term.
Frequently Asked Questions
How much should I put down on a house?
Conventional wisdom suggests 20% to avoid private mortgage insurance (PMI). However, many loan programs accept 3-5% down. A larger down payment means lower monthly payments and less interest paid over the life of the loan.
What is a good mortgage interest rate?
Mortgage rates vary based on economic conditions, your credit score, loan type, and down payment. Check current rates from multiple lenders. Even a 0.25% difference can save thousands over the life of a 30-year mortgage.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significantly on total interest. A 30-year mortgage has lower payments, giving you more monthly flexibility. Use this calculator to compare both options.
What is included in a mortgage payment?
A mortgage payment typically includes principal, interest, property taxes, and homeowner's insurance (PITI). This calculator shows principal and interest. Your actual payment may be higher when taxes and insurance are included.
How can I lower my mortgage payment?
You can lower payments by: making a larger down payment, choosing a longer loan term, shopping for a lower interest rate, improving your credit score before applying, or buying a less expensive home.