Mortgage Calculator

Mortgage questions, answered

How is my monthly mortgage payment calculated?

The principal-and-interest portion comes from the standard amortization formula: it depends only on the amount you borrow, the interest rate, and the length of the loan. Your full monthly housing cost then adds property taxes, homeowners insurance, any HOA dues, and — if you put down less than 20% — mortgage insurance. This calculator shows each of those as a separate line so you can see what is actually driving the number.

How much should I put down on a house?

Twenty percent is the common benchmark because it typically avoids private mortgage insurance, but it is not a requirement. Many conventional loans allow 3–5% down, FHA loans 3.5%, and VA and USDA loans can allow zero down for buyers who qualify. A larger down payment lowers both your monthly payment and your total interest; a smaller one preserves cash. Try both in the calculator and compare the lifetime interest figures.

How much house can I afford?

A widely used guideline is that total housing costs stay near or below 28% of gross monthly income, and that all debt payments stay below about 36%. Lenders look at your full debt-to-income ratio, credit profile, and cash reserves, so the amount you are approved for and the amount that is comfortable are often different numbers. Use the estimated monthly total here as the figure to test against your own budget.

Does paying extra each month actually save money?

Yes, and usually far more than people expect. Extra payments go entirely to principal, so they reduce the balance that all future interest is charged on. On a 30-year loan, even a modest extra amount each month can cut years off the term and save a substantial share of the total interest. The amortization schedule on this page shows the effect of any extra amount you enter.

Why is so much of my early payment going to interest?

Interest is charged on the outstanding balance, which is at its highest at the start. Because the payment stays level, the interest share is largest in the first years and shrinks as the balance falls, while the principal share grows. The year-by-year table on this page shows exactly where that crossover happens for your loan.

Is this estimate a loan offer?

No. This is an illustration based on the figures you enter. Your actual rate depends on your credit, down payment, loan type, property, and market conditions at the time you lock, and taxes and insurance vary by property. Speak with a licensed lender for a rate quote and a pre-approval.