Mortgage Calculator
Calculate your monthly mortgage payment, total interest paid, and overall cost for your home loan. Whether you're buying your first home or refinancing, our calculator helps you understand exactly what you'll pay.
Understanding Mortgage Payments
A mortgage payment typically includes four components: Principal (loan amount), Interest (cost of borrowing), Taxes (property taxes), and Insurance (homeowner's insurance). This is often called PITI.
The formula for monthly mortgage payments is: M = P[r(1+r)^n]/[(1+r)^n-1], where M is the monthly payment, P is the principal, r is the monthly interest rate, and n is the number of payments.
Understanding your mortgage payment helps you determine how much home you can afford, compare different loan options, and plan your financial future.
How to Use This Calculator
- Enter the home price or loan amount in dollars
- Input the annual interest rate (APR) as a percentage
- Select the loan term (15, 20, 25, or 30 years)
- Click "Calculate Mortgage" to see monthly payment, total paid, and interest cost
Tips for Getting the Best Mortgage Rate
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Improve Your Credit Score: A higher credit score (740+) typically qualifies you for the best rates. Pay down debts and make payments on time.
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Save for a Larger Down Payment: Putting 20% or more down reduces your loan amount, avoids PMI, and may qualify you for better rates.
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Shop Multiple Lenders: Compare rates from at least 3-5 lenders. Even small rate differences can save thousands over the loan term.
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Consider Points: If you plan to stay in the home long-term, paying discount points upfront can lower your rate and save money over time.