Mortgage Calculator
Calculate your monthly mortgage payment, total interest, and full amortization schedule instantly.
Loan Details
How Mortgage Payments Work
Your monthly mortgage payment typically consists of four parts, often abbreviated as PITI: Principal, Interest, Taxes, and Insurance. If your down payment is less than 20%, you'll also pay Private Mortgage Insurance (PMI).
The Mortgage Payment Formula
The monthly principal and interest payment is calculated as:
M = P × [r(1+r)^n] / [(1+r)^n - 1]Where M is the monthly payment, P is the loan amount, r is the monthly interest rate, and n is the total number of payments.
30 vs 15 Year Mortgages
A 30-year mortgage gives you lower monthly payments but you pay significantly more in interest over the life of the loan. On a $320,000 loan at 6.5%, you'd pay about $408,000 in interest over 30 years vs only $182,000 over 15 years.
How Much House Can You Afford?
A common rule is that your total monthly housing costs (PITI) should not exceed 28% of your gross monthly income. Your total debt payments (including the mortgage) should stay below 36% of your income.
Frequently Asked Questions
What is PMI and when do I have to pay it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It typically costs 0.5%-1% of your loan amount per year. You can request PMI removal once you reach 20% equity.
Should I make a 20% down payment?
20% lets you avoid PMI and reduces your monthly payment. But putting less down means more cash for emergencies and investments. The right answer depends on your full financial picture.
What's a good mortgage rate in 2026?
In 2026, average 30-year fixed mortgage rates are typically between 6% and 7.5%. Rates depend on your credit score, down payment, and current Federal Reserve policy.
How can I lower my monthly payment?
You can lower your payment by: making a larger down payment, choosing a longer loan term, improving your credit score for a better rate, or shopping around with multiple lenders.