Use our free mortgage calculator to estimate your monthly mortgage payment, including principal, interest, taxes, insurance, and PMI.
Based on national average rates
Property taxes are based on your home's assessed value. Annual property taxes are typically 0.5% to 2.5% of a home's value.
Amount: $2,400/year (0.8% of home value)
Homeowners insurance protects your property against damage. Most lenders require this insurance as a condition of your loan.
Amount: $1,200/year (approximately 0.4% of home value)
Amortization refers to the gradual repayment of a mortgage through regular, equal payments over time. Initially, most of your payment goes toward interest, but as your loan matures, an increasing portion is applied to the principal balance until the debt is completely paid off at the end of your loan term.
As of April 2025
| Principal paid | $295 |
| Total interest paid | $1,900 |
| Loan balance | $339,705 |
Optional: Make extra payments
By adding extra payments, you can pay off your loan and save on interest.
See how extra payments can help you save
This table shows how your loan balance changes over time as you make payments. Click the icon next to any year to view monthly payment details.
| Date | Principal | Interest | Remaining balance |
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Our free mortgage calculator helps you estimate your monthly mortgage payment, including principal and interest, taxes, insurance, and PMI. Use this calculator to determine how much house you can afford and plan your home buying budget. Whether you're a first-time homebuyer or looking to refinance, this mortgage payment calculator gives you the information you need to make informed decisions.
To get an accurate mortgage payment estimate, follow these steps:
The monthly mortgage payment (principal and interest) is calculated using this formula:
M = P[r(1+r)^n]/[(1+r)^n-1]
Where:
For a deeper understanding, Investopedia explains mortgage calculations with helpful examples.
The principal is the amount you borrow, and interest is what the lender charges for lending you money. Your monthly payment goes toward both, with more going to interest at the beginning of your loan and more to principal later on. The Consumer Financial Protection Bureau provides additional guidance on understanding mortgage payments.
Property taxes are levied by local governments and vary by location. They typically range from 0.5% to 2.5% of your home's assessed value annually. Lenders often collect these monthly as part of your mortgage payment and hold them in escrow until they're due. The IRS offers information on the tax deductibility of property taxes.
Homeowners insurance protects your property against damage and liability. Most mortgage lenders require you to have coverage as a condition of your loan. Annual premiums typically range from $300 to $1,000 or more, depending on your home's value and location. The National Association of Insurance Commissioners provides guidance on choosing appropriate coverage.
If your down payment is less than 20% of the home's purchase price, lenders typically require PMI. This insurance protects the lender if you default on your loan. PMI usually costs between 0.3% and 1.5% of your loan amount annually. Read more about PMI from the Consumer Financial Protection Bureau.
If your home is in a community with a homeowners association (HOA), you'll pay monthly or annual fees. These fees cover maintenance of common areas, amenities, and sometimes utilities. They can range from $100 to $700+ per month depending on the community and services provided. HUD provides information on HOAs and their role in community living.
Making extra payments toward your mortgage principal can save you thousands of dollars in interest and help you pay off your loan years earlier. Even small additional payments can make a big difference over time. Use our calculator to see how much you could save with different extra payment scenarios.
With a fixed-rate mortgage, your interest rate remains the same for the entire loan term. This provides payment stability and makes budgeting easier. The most common terms are 30 years, 20 years, and 15 years. Freddie Mac's Primary Mortgage Market Survey tracks average fixed mortgage rates over time.
ARMs offer a fixed interest rate for an initial period (commonly 3, 5, 7, or 10 years), then adjust periodically based on market indexes. These loans typically start with lower rates than fixed-rate mortgages but carry the risk of increasing later. The Consumer Financial Protection Bureau explains how ARM adjustments work.
Federal Housing Administration (FHA) loans are government-backed mortgages designed for buyers with lower credit scores or smaller down payments. They require as little as 3.5% down but include mandatory mortgage insurance premiums. Visit the HUD website for official FHA loan information.
Department of Veterans Affairs (VA) loans are available to service members, veterans, and eligible surviving spouses. They often require no down payment or mortgage insurance and typically offer competitive interest rates. Learn more about eligibility and benefits from the official VA home loans page.
U.S. Department of Agriculture (USDA) loans help low to moderate-income borrowers buy homes in eligible rural areas. These loans may require no down payment but include guarantee fees. Check USDA's Rural Development site for program details and eligibility maps.
A common guideline is that your monthly mortgage payment (including principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income. Your total debt payments (including mortgage, car loans, student loans, etc.) should not exceed 36% of your gross income. Use our calculator to estimate affordability based on your down payment, interest rate, and other costs. NerdWallet offers a detailed affordability calculator with additional factors to consider.
While 20% is traditionally recommended to avoid PMI, many buyers today put down less. FHA loans require as little as 3.5%, and some conventional loans accept 3-5% down payments. A larger down payment reduces your loan amount, monthly payment, and total interest paid. However, it's important to maintain an emergency fund even after making your down payment. Chase Bank provides guidance on down payment considerations.
Your credit score significantly impacts the interest rate you'll qualify for. Higher scores typically result in lower rates, which can save you thousands over the life of your loan. For example, the difference between a 670 and 740 credit score could mean a 0.5% difference in your rate, which adds up substantially over 30 years. FICO's loan savings calculator demonstrates the impact of different credit scores on mortgage rates.
Pre-qualification is an informal estimate of how much you might be able to borrow based on self-reported information. Pre-approval is a more formal process where the lender verifies your financial information and credit history to determine how much they're willing to lend you. A pre-approval letter strengthens your offer when buying a home. Rocket Mortgage explains the key differences between these two terms.
For conventional loans, you can typically request PMI cancellation once your loan balance reaches 80% of your home's original value. Lenders are required to automatically terminate PMI when your balance reaches 78% of the original value, provided you're current on payments. FHA loans have different rules for mortgage insurance premiums, which may last for the entire loan term depending on your down payment. The CFPB provides detailed information on PMI removal requirements.
A 15-year mortgage typically offers lower interest rates and substantial interest savings over the life of the loan. However, the monthly payments are higher. A 30-year mortgage provides lower monthly payments but costs more in total interest. Consider your budget, financial goals, and how long you plan to stay in the home when deciding. Forbes Advisor compares the pros and cons of each term length.
Closing costs include various fees associated with finalizing your mortgage, typically ranging from 2% to 5% of the loan amount. These may include lender fees, appraisal fees, title insurance, attorney fees, recording fees, and prepaid items such as property taxes and homeowners insurance. Some of these costs can be negotiated, and some lenders offer credits or "no closing cost" options (usually in exchange for a higher interest rate). Zillow provides a breakdown of typical closing costs.
Mortgage points (or discount points) are fees paid to the lender at closing in exchange for a reduced interest rate. One point costs 1% of your mortgage amount. Whether points are worth it depends on how long you plan to stay in the home. If you'll keep the mortgage long enough for the monthly savings to exceed the upfront cost, paying points may make sense.