Mortgage Calculator

Calculate your estimated monthly mortgage payment including taxes, insurance, and other housing costs.

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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 property itself serves as collateral for the loan.

✓ You borrow money to buy a home
✓ Make monthly payments over 15-30 years
✓ Build equity as you pay down the loan

Key Components of Your Monthly Payment

Principal

P

The original amount borrowed from the lender. Each monthly payment includes a portion that reduces your principal balance.

Interest

I

The cost of borrowing money, expressed as a percentage rate. Your interest payment is typically higher in the early years of your mortgage.

Property Taxes

T

Annual taxes charged by your local government, usually between 0.5% and 2.5% of your home's value, often collected monthly with your mortgage payment.

Insurance

I

Includes homeowners insurance and, if required, private mortgage insurance (PMI) when your down payment is less than 20%.

Smart Mortgage Tips

1

Make a Larger Down Payment

A larger down payment reduces your monthly payments and could help you avoid PMI. Aim for at least 20% if possible.

2

Improve Your Credit Score

A better credit score can help you secure a lower interest rate, potentially saving thousands over the life of your loan.

3

Consider Total Costs

Remember to factor in property taxes, insurance, maintenance, and possible HOA fees when budgeting for your home.

4

Compare Loan Terms

While 30-year mortgages are common, a 15-year term means higher payments but significant interest savings.

Common Mortgage Questions

While some loans allow down payments as low as 3.5%, a 20% down payment is ideal as it helps you avoid PMI, get better rates, and have lower monthly payments.
Key factors include your credit score, down payment size, loan term, loan type, and current market conditions.
Private Mortgage Insurance (PMI) protects the lender if you default on your loan. It's typically required when your down payment is less than 20%.
Yes, most mortgages allow early payoff. Making extra payments can significantly reduce your total interest costs, but check if your loan has any prepayment penalties.