Mortgage Calculator

When to use this

You found a house listed at $425,000 and you need to know what you'd actually pay each month. Not the sticker price — the real number, with taxes, insurance, and PMI factored in. That's the calculation that determines whether a home is affordable or aspirational.

Mortgage calculators are also essential for comparing scenarios. What happens if you put 10% down instead of 20%? How much does a 0.5% rate difference cost over 30 years? What if you choose a 15-year term instead of 30? The monthly payment is just the starting point — the total interest paid is where the real surprises are.

Run the numbers before you talk to a lender. Walking into a pre-approval meeting with a clear picture of your budget puts you in a stronger position — and prevents you from being steered toward the maximum loan amount you qualify for rather than the amount you're comfortable with.

Good to know

In year 1, most of your payment is interest. On a $350,000 loan at 6.5%, your monthly payment is ~$2,212. In the first month, $1,896 goes to interest and only $316 goes to principal. By year 20, it flips — $1,650 to principal and $562 to interest. This is how amortization works, and it's why extra payments early in the loan save far more than extra payments later.

PMI disappears at 20% equity. If your down payment is less than 20%, lenders require Private Mortgage Insurance — typically 0.5–1% of the loan amount per year. On a $350,000 loan, that's $145–$290/month added to your payment. It drops off once you've built 20% equity, either through payments or appreciation.

A 15-year mortgage isn't double the payment. Halving the term roughly increases the monthly payment by 40-50%, not 100%. But you'll pay dramatically less total interest. A $350,000 loan at 6.5% costs $446,000 in interest over 30 years but only $196,000 over 15 years — a $250,000 difference.

Property tax varies wildly by location. Texas averages 1.8% of home value annually. Hawaii averages 0.28%. On a $400,000 home, that's the difference between $600/month and $93/month in taxes alone. Always include local tax rates in your calculation.

Quick Reference

Scenario ($350K loan, 30yr)	Rate	Monthly P&I	Total Interest
Current market (high)	7.0%	$2,329	$488,281
Recent average	6.5%	$2,212	$446,247
Moderate rate	5.5%	$1,987	$365,460
Low rate era	3.5%	$1,572	$215,799