How to Use This Mortgage Calculator
Enter your home price, down payment percentage, interest rate, and loan term. The calculator instantly shows your estimated monthly payment broken down into principal and interest, property taxes, and homeowner's insurance.
What Does a Mortgage Payment Include?
Your monthly mortgage payment typically has four components, often called PITI:
- Principal — The portion that reduces your loan balance
- Interest — The cost of borrowing, paid to the lender
- Taxes — Property taxes collected monthly and held in escrow
- Insurance — Homeowner's insurance, and PMI if your down payment is under 20%
How Much House Can I Afford?
A common rule of thumb is that your total housing costs should not exceed 28% of your gross monthly income. So if you earn $6,000/month, aim to keep your mortgage payment under $1,680/month.
How Does the Interest Rate Affect My Payment?
Even a 0.5% difference in interest rate can significantly change your monthly payment and the total amount you pay over the life of the loan. Use the rate slider above to see the impact on your payment.
Q: What is a good mortgage interest rate?
A good mortgage rate depends on the market, your credit score, loan type, and down payment. Generally, the higher your credit score and down payment, the lower your rate will be. Compare rates from at least 3–5 lenders before choosing.
Q: How much should I put as a down payment?
A 20% down payment lets you avoid Private Mortgage Insurance (PMI), which can add $100–$300/month to your payment. However, many loans allow as little as 3–3.5% down. Use the slider to compare different down payment scenarios.