Mortgage Calculator
Estimate your monthly mortgage payments with our easy-to-use tool.
Your Estimated Payment
$1,769.73
Understanding Your Mortgage Payment
Your monthly mortgage payment is typically made up of four parts: principal, interest, taxes, and insurance (often abbreviated as PITI). Our calculator focuses on the Principal and Interest (P&I), which are the core components of your loan repayment.
- Principal: The amount of money you borrowed from the lender. Each payment you make reduces your principal balance.
- Interest: The cost of borrowing the money, expressed as a percentage rate. In the early years of your loan, a larger portion of your payment goes toward interest.
Frequently Asked Questions (FAQ)
What is a mortgage?
A mortgage is a loan used to purchase a home or other type of real estate. The property itself serves as collateral, meaning if the borrower fails to make payments, the lender can take possession of the property.
How does the loan term affect my payment?
A shorter loan term (e.g., 15 years) will result in a higher monthly payment, but you will pay significantly less total interest over the life of the loan. A longer term (e.g., 30 years) has a lower monthly payment, making it more affordable month-to-month, but you'll pay much more in interest.
What is a down payment?
A down payment is the initial, upfront portion of the home's purchase price that you pay out of pocket. Lenders typically require a down payment as it reduces their risk. A larger down payment can lead to a smaller loan amount and a lower monthly payment.
What type of payment does this calculator use?
This calculator computes payments for a fixed-rate, principal and interest loan, which is the most common type of mortgage in the United States. With this loan structure, your monthly payment for principal and interest remains the same for the entire loan term, providing you with a predictable budget. Other payment types, such as level principal payments, are extremely rare in the US personal mortgage market.