A mortgage calculator helps you estimate your monthly home loan payment. By entering the home price, down payment, interest rate, and loan term, you get an instant breakdown of what your monthly costs will be. This includes principal (the amount you borrowed), interest (the cost of borrowing), property taxes, and home insurance.

Understanding Your Mortgage Payment

Your monthly mortgage payment typically consists of four parts, often called PITI:

Principal — The portion that pays down the original loan amount.
Interest — The cost charged by the lender for borrowing money.
Taxes — Annual property taxes divided into monthly installments.
Insurance — Homeowner's insurance to protect your property.

Tips for a Lower Mortgage Payment

If your estimated monthly payment is higher than you'd like, consider these options: making a larger down payment to avoid private mortgage insurance (PMI), improving your credit score to qualify for a lower interest rate, choosing a longer loan term, or looking for homes in areas with lower property taxes.

Frequently Asked Questions

How much house can I afford? A common rule of thumb is that your monthly housing costs should not exceed 28% of your gross monthly income. Use this calculator to test different scenarios.

What is a good down payment? Putting 20% down is ideal because it lets you avoid private mortgage insurance (PMI), which can add hundreds of dollars to your monthly payment.

Should I choose a 15-year or 30-year mortgage? A 15-year loan has higher monthly payments but much lower total interest over the life of the loan. A 30-year loan has lower monthly payments but costs more overall.