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:

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.