Calculate Your Mortgage
What is a Mortgage Calculator?
A mortgage calculator is a free online tool that helps estimate monthly mortgage payments for home loans. This comprehensive home loan calculator includes all components of your payment: principal, interest, property taxes, homeowners insurance, PMI (Private Mortgage Insurance), and HOA fees. Together, these components are often referred to as PITI (Principal, Interest, Taxes, Insurance).
Our mortgage payment calculator helps compare 15-year and 30-year mortgage options, shows how down payment affects PMI requirements, and provides a detailed amortization schedule. Whether calculating payments for a first home purchase or refinancing, this calculator gives accurate estimates to help with financial planning and home affordability decisions.
15-Year vs 30-Year Mortgage Comparison
| Feature | 30-Year Mortgage | 15-Year Mortgage |
|---|---|---|
| Monthly Payment | ✓ Lower (more affordable) | ✗ Higher (less affordable) |
| Interest Rate | Typically 0.5-0.75% higher | ✓ Lower rate |
| Total Interest Paid | ✗ Much higher (60% more) | ✓ Significantly lower |
| Equity Building | Slower | ✓ Much faster |
| Loan Payoff | 360 months (30 years) | ✓ 180 months (15 years) |
| Best For | First-time buyers, tight budgets, long-term ownership | High earners, older buyers, quick equity building |
Down Payment Guide
20% Down Payment Benefits
- No PMI required (saves $100-300/month)
- Lower interest rates
- Smaller loan and monthly payments
- Instant equity in your home
- Stronger offer in competitive markets
Less Than 20% Down Options
- 3-5%: Conventional loans (first-time buyers), requires PMI
- 3.5%: FHA loans (lower credit scores accepted), requires MIP
- 0%: VA loans (veterans/military), no PMI required
- 0%: USDA loans (rural areas), no PMI required
- 10-15%: Often shortens PMI requirement duration
Average first-time buyer down payment: 8-13%
Tips to Lower Your Mortgage Payment
Improve Your Credit Score
Higher credit scores (740+) qualify for the best interest rates. Each 0.5% rate reduction can save $50-100+/month.
Make a Larger Down Payment
20% down eliminates PMI and reduces loan amount. Even 10% extra down can save significantly on monthly costs.
Shop Multiple Lenders
Compare at least 3-5 lenders. Rates can vary by 0.5-1%, potentially saving thousands over the loan life.
Buy Discount Points
Pay upfront to permanently lower your rate. Makes sense if you plan to stay in the home 5+ years.
Remove PMI Early
Request PMI removal once you reach 20% equity through payments or home value appreciation.
Consider Property Tax Appeals
If your home is over-assessed, appeal to lower property taxes, which directly reduces monthly payments.
Frequently Asked Questions About Mortgage Calculator
How do I calculate my mortgage payment?
To calculate your mortgage payment, use the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of months. Your total monthly payment includes Principal + Interest + Property Taxes + Homeowners Insurance + PMI (if applicable) + HOA fees. Our mortgage calculator does this automatically.
What is PMI and when is it required?
PMI (Private Mortgage Insurance) is insurance that protects the lender if you default on your loan. PMI is typically required when your down payment is less than 20% of the home's purchase price. PMI costs 0.5% to 1.5% of the loan amount annually. Once you reach 20% equity in your home, you can request to have PMI removed.
Should I choose a 15-year or 30-year mortgage?
30-year mortgages have lower monthly payments but higher total interest paid. 15-year mortgages have higher monthly payments but lower interest rates and you pay significantly less interest overall (often 60% less than a 30-year mortgage). Choose 30-year for affordability, 15-year to build equity faster and save on interest. Use our mortgage calculator to compare both options.
Do I really need to put 20% down?
No, you don't need 20% down to buy a house. Many loan programs allow 3-5% down, and some (like VA and USDA loans) allow 0% down. However, putting 20% down eliminates PMI, lowers your monthly payment, and often gets you better interest rates. The average first-time buyer puts down 8-13%.
What is included in my monthly mortgage payment?
Your monthly mortgage payment typically includes PITI: Principal (loan repayment), Interest (lender's fee), property Taxes (paid to local government), and Insurance (homeowners insurance). If you put less than 20% down, PMI is added. If your home has HOA fees, those are also included. Use our calculator to see the complete breakdown.
How can I lower my mortgage payment?
You can lower your mortgage payment by: 1) Making a larger down payment to reduce principal, 2) Improving your credit score for better interest rates, 3) Choosing a 30-year term instead of 15-year, 4) Shopping multiple lenders for the best rate, 5) Buying a less expensive home, or 6) Waiting for interest rates to drop. Our mortgage calculator helps compare these scenarios.