Mortgage Calculator
Calculate monthly mortgage payments, total interest paid, and view a detailed amortization schedule.
How to Calculate Mortgage Payments
A mortgage payment consists of principal and interest (P&I), plus property taxes and insurance. The monthly P&I payment is calculated using the formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments.
Fixed vs Variable Rate
A fixed-rate mortgage keeps the same interest rate for the entire loan term, providing predictable monthly payments. A variable (adjustable) rate mortgage starts with a lower rate that can change periodically, which means your payment could increase or decrease over time.
Tips for First-Time Buyers
Aim for a down payment of at least 20% to avoid private mortgage insurance (PMI). Keep your total housing costs below 28% of your gross monthly income. Shop around for the best interest rates and consider getting pre-approved before house hunting. Factor in closing costs, which typically range from 2-5% of the home price.
FAQ
What is included in a monthly mortgage payment?
A typical mortgage payment includes principal, interest, property taxes, and homeowner's insurance (PITI).
How much house can I afford?
A common guideline is the 28/36 rule: spend no more than 28% of gross income on housing and 36% on total debt.