Mortgage Calculator
By admin
Published
Use the calculator above to estimate your monthly mortgage payment by entering your loan amount, interest rate, and term. The result shows your principal & interest payment plus estimated taxes and insurance (PITI), helping you budget for homeownership costs.
How mortgages are calculated
Your monthly payment is determined by this standard formula:
- Principal: Loan amount spread over the term
- Interest: Annual rate divided by 12 months
- Taxes/Insurance: Typically 1-1.5% of home value annually
Example: A $300,000 loan at 6.5% for 30 years would have:
| Principal & Interest | $1,896 |
| Taxes (1%) | $250 |
| Insurance (0.5%) | $125 |
| Total Payment | $2,271 |
What affects your payment
- Interest rates: Current averages range from 6.0-7.5% (2026)
- Loan term: 15-year loans cost more monthly but save long-term
- Down payment: <20% down usually requires PMI (0.3-1.5% of loan)
- Property taxes: Vary by county from 0.5-2.5% of assessed value
- Loan type: FHA loans include 1.75% upfront MIP fee
Tips to lower your payment
- Improve your credit score: Rates drop ~0.25% per 20-point increase above 680
- Consider buying points: Pay 1% of loan to reduce rate by ~0.25%
- Shop insurance providers: Bundling home/auto can save 15-25%
- Appeal high tax assessments: 35% of successful appeals reduce bills by 10%+
- Recast your mortgage: Some lenders let you re-amortize after large principal payments
Common questions
Why does my payment change after closing?
Escrow adjustments for taxes/insurance often cause first-year payment variations. Lenders must cover potential shortages.
How much house can I afford?
Most lenders cap payments at 28-31% of gross monthly income. Our calculator helps test different price ranges against your budget.