Mortgage Payment Calculator
Estimates monthly mortgage payments from loan amount, term, rate, taxes, and insurance
Total amount of the mortgage loan
Annual mortgage interest rate
Length of the mortgage in years
Optional annual property tax amount
Optional annual homeowners insurance amount
Enter loan details to calculate monthly payment
Monthly property tax portion
Monthly insurance portion
Combined monthly payment including tax and insurance
Total principal and interest paid over the loan term
Total interest paid over the loan term
Frequently Asked Questions
How is a monthly mortgage payment calculated?
The monthly payment uses the amortization formula: M = P * r(1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. Property taxes and insurance are added separately to get the total monthly cost.
How much house can I afford?
A common guideline is that your total monthly housing cost (mortgage, taxes, insurance) should not exceed 28% of your gross monthly income. Lenders also look at your total debt-to-income ratio, which should stay below 36-43% including all debts.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but much lower total interest cost. A 30-year mortgage has lower payments but you pay significantly more interest over time. For example, a $300,000 loan at 7% costs about $419,000 in interest over 30 years but only $186,000 over 15 years.
What is included in a mortgage payment?
A full mortgage payment (PITI) includes principal, interest, property taxes, and homeowner's insurance. Some lenders also require private mortgage insurance (PMI) if your down payment is less than 20%. The principal and interest portion goes to the lender; taxes and insurance go into escrow.
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