How to Use the Mortgage Calculator

Enter your home price, down payment, interest rate, and loan term to instantly see your estimated monthly mortgage payment. You can also add property tax and homeowners insurance to get your full PITI (Principal, Interest, Tax, Insurance) payment — the true cost of homeownership each month.

What is PITI?

PITI stands for Principal, Interest, Taxes, and Insurance. Lenders use your PITI payment to calculate your debt-to-income (DTI) ratio when qualifying you for a mortgage. Most lenders prefer your PITI to be no more than 28% of your gross monthly income.

How is a Mortgage Payment Calculated?

Your monthly principal and interest payment is calculated using the standard amortization formula. At the start of your loan, most of each payment goes toward interest. Over time, a larger portion goes toward reducing your principal balance — this is shown in the amortization table above.

15-Year vs 30-Year Mortgage

A 15-year mortgage has higher monthly payments but you pay significantly less total interest and build equity faster. A 30-year mortgage has lower monthly payments, giving you more cash flow flexibility, but costs more in total interest over the life of the loan. Use the calculator above to compare both scenarios.

How Much Down Payment Do I Need?

Most conventional loans require at least 3–5% down. Putting 20% down eliminates Private Mortgage Insurance (PMI), which can save $100–$300/month. FHA loans allow down payments as low as 3.5% but require mortgage insurance regardless of down payment size.

Frequently Asked Questions

What credit score do I need for a mortgage?

Most conventional loans require a minimum credit score of 620. FHA loans accept scores as low as 580 with a 3.5% down payment, or 500 with 10% down. Higher credit scores generally qualify for lower interest rates, saving you thousands over the loan term.

What is an amortization schedule?

An amortization schedule shows exactly how each monthly payment is split between principal (reducing your loan balance) and interest (cost of borrowing). Early in a mortgage, the majority of your payment goes to interest. As you make payments over time, more goes toward principal.

Should I get a fixed or adjustable-rate mortgage?

A fixed-rate mortgage keeps the same interest rate for the life of the loan, giving you predictable payments. An adjustable-rate mortgage (ARM) typically starts with a lower rate but can increase after an initial period. Fixed rates are recommended for long-term homeowners; ARMs may suit those planning to sell within 5–7 years.

How do I lower my monthly mortgage payment?

The most effective ways to lower your payment are: making a larger down payment, securing a lower interest rate by improving your credit score or shopping multiple lenders, choosing a longer loan term (30 vs 15 years), or buying a less expensive home.

🏠 Mortgage Calculator