Mortgage Calculator — Monthly Payment, Amortization & More

Loan Details

Home Price

Down Payment

Loan Term

Interest Rate

Property Tax / yr

Home Insurance / yr

HOA Fee / mo

Monthly Payment

$—

per month

Principal & Interest —

Property Tax —

Home Insurance —

HOA —

Loan Amount —

Total Interest —

Total Cost —

Amortization Schedule

See how each payment is split between principal and interest over the life of your loan.

Monthly P&I

—

Total Interest

—

Total Paid

—

Month	Payment	Principal	Interest	Balance

Refinance Calculator

Compare your current mortgage with a new loan and see exactly how much you'll save.

Current Mortgage

Current Balance

Current Rate

Remaining Term

New Mortgage

New Rate

New Term

Closing Costs

Refinance Analysis

	Current	New
Monthly Payment	—	—
Monthly Savings	—
Total Interest	—	—
Break-even Point	—
Lifetime Savings	—

How Much House Can I Afford?

Based on your income and debts, we'll calculate the maximum home price you can comfortably afford.

Your Financial Picture

Annual Gross Income

Monthly Debt Payments

Down Payment

Interest Rate

Loan Term

Affordability Result

Max Home Price

—

Conservative Aggressive

Max Monthly Payment —

Front-end DTI —

Back-end DTI —

Recommended Income —

How to Use the Mortgage Calculator

Enter your home price, down payment, loan term, and interest rate. The calculator instantly shows your monthly payment broken down into principal and interest. Switch tabs to see the full amortization schedule, compare refinance options, or check how much house you can afford based on your income.

Understanding Your Mortgage Payment

Your monthly mortgage payment typically includes principal (paying down your loan balance), interest (lender's fee), property taxes (escrowed), and homeowner's insurance (PMI if down payment is under 20%). This calculator shows the principal + interest portion. Add 1–2% of home value annually for taxes and insurance for a realistic total payment estimate.

Current Mortgage Rates (2025)

Mortgage rates in 2025 remain elevated compared to the historic lows of 2020–2021 but have pulled back from the 8% peak seen in late 2023. The 30-year fixed rate is hovering around 6.5–7.0%, while 15-year fixed rates are near 6.0–6.5%.

Loan Type	Rate (May 2025)	Monthly Payment (per $100k)	Best For
30-Year Fixed	6.75%	$649	Buyers who want lower monthly payments
15-Year Fixed	6.10%	$852	Buyers who want to pay less interest overall
5/1 ARM	6.20%	$613	Buyers planning to sell or refinance within 5 years
FHA (30-Year)	6.50%	$632	First-time buyers with 3.5% down
VA (30-Year)	6.25%	$616	Eligible veterans and active military

How Much House Can You Afford?

The standard rule is to keep your total housing costs (principal, interest, taxes, insurance) below 28% of your gross monthly income — the front-end DTI ratio. Lenders also look at your total debt payments (including car loans, student loans, credit cards) staying below 36–43% of gross income.

Annual Income	Max Monthly Payment (28%)	Estimated Home Price (6.75%, 30yr, 10% down)
$60,000	$1,400	~$195,000
$80,000	$1,867	~$260,000
$100,000	$2,333	~$325,000
$120,000	$2,800	~$390,000
$150,000	$3,500	~$490,000

Down Payment: How Much Do You Need?

The minimum down payment depends on the loan type. Conventional loans require as little as 3% for first-time buyers, but putting down less than 20% triggers Private Mortgage Insurance (PMI), typically 0.5–1.5% of the loan amount per year. FHA loans allow 3.5% down with a credit score of 580+.

A larger down payment lowers your monthly payment, eliminates PMI, and often qualifies you for a better interest rate. On a $350,000 home, going from 5% to 20% down saves roughly $180/month in PMI alone — over $2,100 per year.

Types of Mortgage Loans Explained

Not all mortgages are the same. The right loan type depends on your credit score, down payment, military status, and where you're buying. Here's a breakdown of the most common mortgage programs available to US buyers in 2025:

Loan Type	Min Down Payment	Min Credit Score	Who It's For	PMI Required?
Conventional	3%–20%	620+	Most buyers with good credit	Yes, if <20% down
FHA	3.5% (580+ score)	500+	First-time buyers, lower credit	Yes (MIP, lifetime)
VA	0%	No minimum	Veterans, active military, spouses	No
USDA	0%	640+	Rural/suburban buyers, income limits	No (annual fee applies)
Jumbo	10%–20%	700+	High-cost areas, loans above $766,550	Varies by lender

Conventional loans are the most common and offer the most flexibility, especially if you have a credit score above 700 and can put 20% down. FHA loans are popular with first-time buyers because of the lower credit score threshold, but note that FHA requires mortgage insurance for the life of the loan if your down payment is under 10%. VA loans are one of the best deals in finance — no down payment, no PMI, and competitive rates — but require qualifying military service. USDA loans are often overlooked; they cover a surprisingly large portion of the US (not just farms), and income limits are higher than many buyers expect.

7 Proven Ways to Get a Lower Mortgage Rate

Your mortgage rate isn't fixed — lenders calculate it based on your financial profile. Here's how to position yourself for the lowest possible rate before you apply:

1. Raise your credit score to 740+

Borrowers with scores of 740 or above receive the best rates. Even going from 680 to 720 can shave 0.25–0.5% off your rate — worth tens of thousands over a 30-year loan. Pay down revolving debt and avoid new credit inquiries for 6 months before applying.

2. Increase your down payment

A larger down payment reduces the lender's risk. At 20% or more, you typically qualify for better pricing tiers and eliminate PMI. Going from 10% to 20% down on a $400,000 home can improve your rate by 0.125–0.25%.

3. Shop at least 3–5 lenders

Studies show borrowers who get 5 quotes save an average of $3,000 over the life of the loan compared to those who get just one. Rate-shop within a 14-day window so multiple inquiries count as a single credit pull. Compare the APR (not just the rate) since it includes fees.

4. Choose a shorter loan term

15-year mortgages typically carry rates 0.5–0.75% lower than 30-year loans because the lender's money is at risk for half as long. If your budget allows the higher payment, you save significantly in both rate and total interest.

5. Reduce your debt-to-income ratio

Pay off a car loan or credit card balance before applying. Dropping your back-end DTI from 42% to 35% can move you into a lower risk tier, unlocking better rates and potentially higher loan amounts.

6. Consider buying discount points

One discount point costs 1% of the loan and typically buys down the rate by 0.25%. Break-even is usually 4–6 years. If you plan to stay in the home long-term, points are worth it. Use our calculator's inputs to model different rate scenarios.

7. Lock your rate at the right time

Rate locks typically last 30–60 days. Lock when rates drop — don't try to time the market perfectly. Ask your lender about float-down options that let you capture a lower rate if it falls after you lock.

What to Expect at Closing

Closing (also called settlement) is the final step in buying a home. It typically happens 30–60 days after your offer is accepted. Here's what you need to bring and what to expect:

Closing costs range from 2–5% of the loan amount. On a $350,000 home with a $280,000 loan, expect $5,600–$14,000 in fees including: origination fee (0.5–1% of loan), appraisal ($400–$700), title insurance (~$1,000), recording fees ($25–$250), prepaid interest (depending on closing date), and the first year's homeowner's insurance.

What to bring: Government-issued photo ID, a cashier's check or wire transfer for the closing amount (personal checks are usually not accepted), and your final loan documents to review. Read everything carefully — compare the final Closing Disclosure to the Loan Estimate you received three days before closing.

After closing: Your first mortgage payment is typically due on the 1st of the month following one full calendar month after your closing date. For example, if you close on July 15, your first payment is due September 1. Use our calculator to confirm your payment amount and review the full amortization schedule so you know exactly how your loan will pay down over time.

Frequently Asked Questions

Everything about mortgage calculations and home buying.

How is the monthly mortgage payment calculated?

Your monthly P&I payment = Loan Amount × [r(1+r)ⁿ / ((1+r)ⁿ−1)], where r = monthly interest rate and n = total number of payments. Your full monthly payment also includes property tax, homeowners insurance, and HOA fees.

What is a good mortgage interest rate?

As of 2025–2026, a 30-year fixed rate around 6–7% is considered average. Below 6% is excellent. Rates depend on your credit score, down payment, loan type, and lender. Always get multiple quotes.

How much should I put as a down payment?

The traditional recommendation is 20% to avoid PMI (Private Mortgage Insurance). However, FHA loans allow as little as 3.5% down. A higher down payment means lower monthly payments and less interest paid overall.

What is an amortization schedule?

An amortization schedule shows exactly how each monthly payment is divided between principal (reducing your loan balance) and interest. In early years, most of your payment goes to interest. Over time, more goes to principal.

When does refinancing make sense?

Refinancing generally makes sense if you can lower your rate by at least 0.5–1%, you plan to stay in the home long enough to recoup closing costs (break-even point), and you have good credit and sufficient equity.

What is DTI and why does it matter?

DTI (Debt-to-Income ratio) is your total monthly debt payments divided by gross monthly income. Lenders prefer a front-end DTI under 28% (housing costs) and back-end DTI under 36–43% (all debts). Higher DTI means higher lending risk.

What's the difference between 15-year and 30-year mortgage?

A 15-year mortgage has higher monthly payments but you pay significantly less interest overall and build equity faster. A 30-year mortgage has lower monthly payments but costs more in total interest. Choose based on your cash flow and financial goals.

How much house can I afford?

A common rule is the 28/36 rule: spend no more than 28% of gross monthly income on housing costs, and no more than 36% on all debt. For example, at $80,000/year ($6,667/month), your max housing budget is about $1,867/month. Include taxes, insurance, and HOA in this figure.

What is PMI and how can I avoid it?

PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home's value. It typically costs 0.5–1.5% of the loan amount per year. You can avoid PMI by putting 20% down, or request removal once you reach 20% equity.

What credit score do I need to get a mortgage?

Conventional loans typically require a credit score of 620 or higher. FHA loans accept scores as low as 580 (with 3.5% down) or even 500 (with 10% down). The best rates go to borrowers with scores of 740 or above.

What are closing costs and how much are they?

Closing costs typically range from 2–5% of the loan amount and include lender fees, appraisal, title insurance, attorney fees, and prepaid items like homeowners insurance. On a $300,000 home, expect $6,000–$15,000 in closing costs.

Should I pay points to lower my mortgage rate?

Paying one discount point costs 1% of the loan amount and typically lowers your rate by 0.25%. Calculate your break-even point: divide the point cost by your monthly savings. If you plan to stay in the home past the break-even (usually 4–7 years), points are worth it.