Mortgage Calculator
Estimate payments, compare loan types, and apply current market rates
Calculator
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Extra Payments
Loan Details
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Monthly Costs
PMI (Private Mortgage Insurance)
Required when down payment is <20%
Property Tax
Estimated annual property tax
Homeowner's Insurance
Annual home insurance premium
HOA Fees
Monthly homeowner association dues
Current Mortgage Rates
AI-sourced market estimates · Updated on load
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⚠️ Rates shown are AI-estimated averages for informational purposes only and may not reflect exact lender offers. Always contact lenders directly for official rate quotes. Your actual rate depends on credit score, LTV, property type, and lender policies.
Side-by-Side Comparison
Compare 15 vs 20 vs 30-year loans at current settings
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Loan Term Breakdown
Extra Payment Analysis
See how additional payments reduce your total cost and payoff time
Additional Monthly Payment
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$
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Monthly Payment
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Principal + Interest + Extras
Loan Amount
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Interest Rate
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Total Interest
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Total Cost
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Principal
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Interest
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Tax + Ins + PMI
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Amortization Schedule
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Mortgage Calculator Components
A mortgage usually includes the following key components. These are also the basic components of a mortgage calculator.
Loan amount: the amount borrowed from a lender or bank. In a mortgage, this amounts to the purchase price minus any down payment. The maximum loan amount one can borrow normally correlates with household income or affordability.
Down payment: the upfront payment of the purchase, usually a percentage of the total price. This is the portion of the purchase price covered by the borrower. Typically, mortgage lenders want the borrower to put 20% or more as a down payment. In some cases, borrowers may put down as low as 3%. If the borrowers make a down payment of less than 20%, they will be required to pay private mortgage insurance (PMI). Borrowers need to hold this insurance until the loan's remaining principal dropped below 80% of the home's original purchase price. A general rule-of-thumb is that the higher the down payment, the more favorable the interest rate and the more likely the loan will be approved.
Loan term: the amount of time over which the loan must be repaid in full. Most fixed-rate mortgages are for 15, 20, or 30-year terms. A shorter period, such as 15 or 20 years, typically includes a lower interest rate.
Interest rate: the percentage of the loan charged as a cost of borrowing. Mortgages can charge either fixed-rate mortgages (FRM) or adjustable-rate mortgages (ARM). Interest rates remain the same for the term of the FRM loan. The calculator above calculates fixed rates only. For ARMs, interest rates are generally fixed for a period of time, after which they will be periodically adjusted based on market indices. ARMs transfer part of the risk to borrowers. Therefore, the initial interest rates are normally 0.5% to 2% lower than FRM with the same loan term. Mortgage interest rates are normally expressed in Annual Percentage Rate (APR), sometimes called nominal APR or effective APR. It is the interest rate expressed as a periodic rate multiplied by the number of compounding periods in a year. For example, if a mortgage rate is 6% APR, it means the borrower will have to pay 6% divided by twelve, which comes out to 0.5% in interest every month.
What’s included in a mortgage payment?
Principal: The amount you borrow from a lender to pay for a home before any interest is added. It is the total financed amount on which interest accumulates.
Interest: The cost to borrow money from the lender. It’s typically calculated as a percentage set by your lender, based on market rates, and paid in addition to the principal amount.
Property taxes: These are yearly taxes determined by the local government. They are a percentage of your home’s value and are often used to fund local schools and hospitals.
Mortgage insurance: Insurance paid for by a buyer that protects the lender (not the buyer) if mortgage payments stop. It may be required if your down payment is less than 20%.
Homeowners insurance: The amount of insurance you will need to pay to cover any damage to your home. Rates are determined by several factors, including home size, age, location, and deductible amount.
Homeowners association (HOA) or condo fees: If you buy a condo or a home that has an HOA, you will pay a fee for services that may include landscaping , exterior maintenance, water, sewer, etc. These fees are usually collected on a monthly basis.
FYI:
You do not need to include property taxes or insurance in your mortgage payment. They are added in for the "convenience" reasons so you do not forget or miss paying them. However, they also increase your overall payment and therefore, increase interest charged as well on the total.