How is my monthly mortgage payment calculated?

Your monthly mortgage payment is calculated using the loan amount (principal), annual interest rate, and loan term. The formula accounts for both principal and interest, spreading the total cost evenly over your repayment period. Your actual payment may also include escrow amounts for property taxes and insurance.

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

A 15-year mortgage has higher monthly payments but you'll pay much less total interest (often 50% less than a 30-year loan) and own your home outright in half the time. A 30-year mortgage has lower monthly payments but you'll pay significantly more interest over the life of the loan.

How much house can I afford with my budget?

A common rule is that your housing costs (including mortgage, taxes, and insurance) should not exceed 28% of your gross monthly income. Use our calculator to find a monthly payment that fits this guideline, then work backwards to determine your maximum home price.

Should I pay points to get a lower interest rate?

Paying points (prepaid interest) can lower your interest rate, but you need to calculate the break-even point. If you plan to stay in the home long enough to recoup the cost through lower monthly payments, paying points might make financial sense.

What other costs should I budget for beyond the mortgage payment?

Beyond principal and interest, budget for property taxes (1-3% of home value annually), homeowners insurance ($100-300/month typically), private mortgage insurance if down payment is under 20%, and HOA fees if applicable. These can add $500-1000+ to your monthly housing costs.

How does my credit score affect my mortgage rate?

Your credit score significantly impacts your mortgage rate. Borrowers with excellent credit (740+) typically qualify for the best rates, while those with poor credit (below 620) may face higher rates or difficulty qualifying. Improving your credit score before applying can save thousands over the loan term.

Mortgage Calculator

Navigate homeownership confidently with comprehensive mortgage calculations including monthly payments, total interest, and detailed amortization schedules. Essential for home buyers, refinancing strategies, and loan comparisons with precise financial projections and interactive breakdowns.

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Common loan amounts for quick mortgage estimation

Loan Details & Terms

Enter loan amount, interest rate, and repayment term

Loan Amount ($)

Interest Rate (%)

Loan Term (years)

Mortgage Basics: Monthly payments include principal (loan amount) and interest. Shorter terms mean higher payments but less total interest.

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