Mortgage Calculator

Plan your home purchase with our easy-to-use mortgage calculator. Estimate your monthly payments, see how much interest you'll pay over time, and understand the complete breakdown of your mortgage.

Mortgage Details

$
$50,000 $2,000,000
$
%
0% 90%
%
0.5% 15%

Additional Monthly Costs (Optional)

$
$
$

Mortgage Summary

Monthly Principal & Interest

$1,216

Total Monthly Payment

$1,516

(including taxes & insurance)

Total Loan Amount

$240,000

Total Payment

$437,760

Total Interest

$197,760

Down Payment

$60,000

Loan to Value

80%

Payment Breakdown

Payment Component Amount
Principal & Interest $1,216
Property Tax $300
Home Insurance $100
HOA Fees $0
Total Monthly Payment $1,516

Amortization Schedule

Year Payment Principal Interest Total Interest Balance

Understanding Your Mortgage

What is a Mortgage?

A mortgage is a loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property serves as collateral to secure the loan.

Key Mortgage Terms

Principal

The original amount of the loan, which decreases as you make payments.

Interest Rate

The percentage charged by the lender for borrowing the money.

Down Payment

The initial payment you make when buying a home, usually a percentage of the purchase price.

Loan Term

The length of time you have to repay the loan, typically 15, 20, or 30 years.

Amortization

The process of paying off your mortgage through regular payments over time.

Escrow

An account where funds are held for property taxes and insurance premiums.

How to Use This Calculator

  1. Enter the home price you're considering purchasing.
  2. Set your expected down payment amount or percentage.
  3. Select your loan term (the number of years to repay).
  4. Enter the interest rate you expect to receive from your lender.
  5. Optionally, add any additional costs like property tax, home insurance, and HOA fees.
  6. Click the Calculate Mortgage button to see your results!

Tips for Lower Mortgage Payments

  • Improve your credit score to qualify for better interest rates.
  • Make a larger down payment to reduce the loan amount.
  • Consider a longer loan term (though you'll pay more interest over time).
  • Shop around with multiple lenders to find the best rate.
  • Consider paying points to lower your interest rate if you plan to stay in the home long-term.
  • Look into first-time homebuyer programs that may offer better rates or down payment assistance.

Frequently Asked Questions

What factors affect my mortgage rate?

Your mortgage interest rate is influenced by several factors, including your credit score, down payment amount, loan term, loan type, current market conditions, and the lender you choose. Generally, a higher credit score and larger down payment will result in a better interest rate.

How much should I save for a down payment?

While 20% is often cited as the ideal down payment to avoid private mortgage insurance (PMI), there are many loan programs that allow for much smaller down payments. FHA loans require as little as 3.5%, and some VA and USDA loans offer zero down payment options for eligible borrowers.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage typically has a lower interest rate and significantly reduces the total interest paid over the life of the loan. However, the monthly payments will be higher than with a 30-year mortgage. A 30-year mortgage offers lower monthly payments but will cost more in total interest over time. Choose based on your financial situation and long-term goals.

What's the difference between pre-qualification and pre-approval?

Pre-qualification is an informal estimate of how much you might be able to borrow based on information you provide. Pre-approval is a more formal process where the lender verifies your financial information and credit history and provides a specific loan amount for which you qualify. Pre-approval carries more weight when making an offer on a home.

How accurate is this mortgage calculator?

This calculator provides estimates based on the information you input. While it's designed to be as accurate as possible, actual mortgage terms, interest rates, and fees may vary based on your specific situation, the lender you choose, and current market conditions. Always consult with a mortgage professional for personalized advice.

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