Mortgage PaymentCalculator
Calculate your estimated monthly mortgage payment based on home price, down payment, interest rate, and loan term. Plan your home purchase with confidence.
Enter Your Details
Optional: Property Taxes & Insurance
Estimated Monthly Payment
$0
Principal & Interest only
Total Monthly (with taxes/insurance)
$650
Loan Summary
This calculator provides estimates for informational purposes only. Actual rates and payments may vary. Contact us for a personalized quote based on your specific situation.
Smart Mortgage Tips
Understanding these key factors can help you make better mortgage decisions and potentially save thousands over the life of your loan.
20% Down Payment
Putting 20% down eliminates Private Mortgage Insurance (PMI), saving you hundreds monthly.
Rate Impact
Even 0.5% lower rate on a $400K loan saves over $40,000 in interest over 30 years.
15 vs 30 Year
15-year mortgages have higher payments but save significant interest over the loan life.
Include All Costs
Remember to budget for property taxes, insurance, HOA fees, and maintenance.
Understanding Your Mortgage Payment
Your monthly mortgage payment is one of the most important financial commitments you will make. Understanding how it is calculated and what factors affect it helps you make informed decisions about your home purchase.
The principal and interest portion of your payment is determined by three main factors: the loan amount (home price minus down payment), the interest rate, and the loan term. A larger down payment means a smaller loan and lower monthly payment. A lower interest rate reduces the cost of borrowing. A shorter term means higher payments but less total interest paid.
Beyond principal and interest, your actual monthly payment typically includes property taxes and homeowners insurance (often held in escrow by your lender). If your down payment is less than 20%, you may also pay Private Mortgage Insurance (PMI) until you reach 20% equity.
Payment Breakdown (PITI)
- Principal
The portion that pays down your loan balance
- Interest
The cost of borrowing money from the lender
- Taxes
Property taxes, typically escrowed monthly
- Insurance
Homeowners insurance and possibly PMI
Mortgage Calculator FAQs
How is my monthly mortgage payment calculated?
Your monthly payment is calculated using the loan amount, interest rate, and loan term. The formula accounts for both principal and interest, creating equal monthly payments over the life of the loan. This calculator shows principal and interest only—your actual payment will also include property taxes and insurance.
What is included in a mortgage payment?
A typical mortgage payment includes four components (PITI): Principal (paying down the loan), Interest (the cost of borrowing), Taxes (property taxes, often escrowed), and Insurance (homeowners insurance and possibly PMI). This calculator focuses on principal and interest with optional estimates for taxes and insurance.
How much house can I afford?
Most lenders recommend your total housing payment (including taxes and insurance) not exceed 28% of your gross monthly income. Your total debt payments should not exceed 36-43% of income. For a personalized assessment, contact us for pre-approval.
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% on conventional loans. PMI typically costs 0.5-1% of the loan amount annually and can be removed once you reach 20% equity.
How do interest rates affect my payment?
Interest rates significantly impact your monthly payment and total cost. For example, on a $400,000 loan, a 1% rate difference can mean over $200/month and $80,000+ in total interest over 30 years.
Ready to Get Your Actual Rate?
This calculator provides estimates. For an accurate rate quote based on your credit, income, and property, get pre-approved with Legend Realty today.