🏠 Mortgage Calculator

Understanding Your Mortgage Payments

Buying a home is one of the largest financial decisions you'll make. This comprehensive mortgage calculator helps you understand exactly what you'll pay each month, how much interest you'll pay over the life of the loan, and how different strategies can save you money. Whether you're a first-time homebuyer or considering refinancing, this tool provides the insights you need to make informed decisions.

What This Calculator Shows You

• Monthly Payment: Your principal and interest payment, plus estimates for property taxes, insurance, and PMI if applicable
• Total Interest Paid: The total amount of interest you'll pay over the life of the loan
• Amortization Schedule: A month-by-month breakdown showing how each payment is split between principal and interest
• Extra Payment Impact: How making additional payments can shorten your loan term and save thousands in interest
• Refinancing Analysis: Whether refinancing makes financial sense based on closing costs and new interest rates

Key Mortgage Terms Explained

• Principal: The original loan amount you borrow
• Interest Rate: The annual percentage rate (APR) charged by the lender
• Loan Term: The length of time to repay the loan (typically 15 or 30 years)
• PMI (Private Mortgage Insurance): Required if your down payment is less than 20% of the home value
• Property Taxes: Annual taxes based on your home's assessed value (varies by location)
• Homeowners Insurance: Insurance coverage for your property (typically 0.25-0.5% of home value annually)

Strategies to Save Money

Make Extra Payments: Even small additional payments can significantly reduce your total interest. For example, adding $100 per month to a $300,000 mortgage at 4.5% can save over $30,000 in interest and pay off the loan 4 years early.

Consider Shorter Terms: A 15-year mortgage typically has a lower interest rate and saves substantial interest, though monthly payments are higher. Use this calculator to compare different loan terms.

Refinance When Rates Drop: If interest rates drop significantly below your current rate, refinancing may save money even after accounting for closing costs. Our break-even calculator shows exactly when refinancing pays off.

Important Considerations

This calculator provides estimates based on standard formulas. Actual payments may vary based on your specific loan terms, property taxes in your area, insurance costs, and whether you're required to pay PMI. Always consult with a mortgage professional for exact figures before making financial decisions. Property taxes and insurance are estimates - actual amounts depend on your location and coverage choices.