How is my monthly mortgage payment calculated?

Your monthly mortgage payment includes principal and interest (P&I), plus additional costs like property taxes, homeowner's insurance, PMI (if down payment is less than 20%), and HOA fees if applicable.

What is PMI and when is it required?

Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home's purchase price. PMI protects the lender if you default on the loan and can usually be removed once you reach 20% equity.

How does the loan term affect my payment?

A shorter loan term (like 15 years) results in higher monthly payments but less total interest paid over the life of the loan. A longer term (like 30 years) has lower monthly payments but more total interest.

Should I make extra payments on my mortgage?

Extra payments can significantly reduce the total interest paid and shorten your loan term. Even small additional payments applied to principal can save thousands in interest over the life of the loan.

🏠Mortgage Calculator

Calculate monthly mortgage payments, total interest, and see how different loan terms affect your home purchase

Loan Details

Home Price*

Purchase price of the home

Down Payment Type*

Down Payment (%)*

Percentage of home price

Loan Term*

Interest Rate*

Annual interest rate

Additional Costs

Property Tax (Annual)

Annual property tax amount

Home Insurance (Annual)

Annual homeowner's insurance premium

PMI (Monthly)

Private Mortgage Insurance (auto-calculated if down payment < 20%)

HOA Fees (Monthly)

Homeowner's Association fees

Extra Payments

Extra Monthly Payment

Additional principal payment each month

Understanding Your Mortgage

🏠 Key Components

Principal: The amount borrowed
Interest: Cost of borrowing money
Property Tax: Annual tax on your property
Insurance: Protects your home
PMI: Required if down payment < 20%
HOA: Community association fees

💡 Smart Tips

• Aim for 20% down to avoid PMI
• Extra payments reduce total interest
• Shorter terms = lower total interest
• Shop around for best interest rates
• Factor in closing costs (2-5%)
• Keep monthly payment under 28% of income

Mortgage Strategies

🎯 15-Year vs 30-Year

• 15-year: Higher monthly payment, less total interest
• 30-year: Lower monthly payment, more flexibility
• 15-year rates typically 0.5% lower

📊 Extra Payments

• Even small extra payments help
• $100/month can save years
• All extra goes to principal
• Can save thousands in interest

🔄 Refinancing

• Consider if rates drop 1%+
• Account for closing costs
• Calculate break-even point
• May reset loan term

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Understanding Your Mortgage Payment

What's Included

✓Principal & Interest (P&I)
✓Private Mortgage Insurance (PMI)
✓Property taxes (estimated)
✓Homeowner's insurance
✓HOA fees (if applicable)
✓Complete amortization schedule

Key Features

•Down payment as amount or percentage
•Automatic PMI calculation
•Extra payment scenarios
•Total interest over loan life
•Payoff date calculation

PMI Information

Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20%. PMI can usually be removed once you reach 20% equity in your home.

Important Note

This calculator provides estimates. Actual payments may vary based on loan terms, lender requirements, and local tax rates. Consult with a mortgage professional for personalized advice.