Mortgage Calculator
Calculate monthly mortgage payments, total interest, and affordability with property tax, insurance, PMI, and HOA fees
Loan Details
Down payment: $80,000
Monthly Payment
Monthly Breakdown
Income Requirements (28% Rule)
Annual: $108826
Mortgage Tips & Information
Tips to Lower Your Payment
- Make a larger down payment (20% avoids PMI)
- Shop around for better interest rates
- Consider a longer loan term (but pay more interest overall)
- Improve your credit score before applying
- Buy points to reduce your interest rate
Additional Costs to Consider
- Closing costs (2-5% of home price)
- Moving expenses
- Home maintenance (1-2% of home value annually)
- Utilities and other monthly expenses
How to Use
- 1
Enter home price
Input the total price of the home you want to purchase
- 2
Set down payment
Enter your down payment as a percentage or dollar amount
- 3
Choose loan term
Select your loan term (15, 20, 25, or 30 years)
- 4
Enter interest rate
Input the annual interest rate for your mortgage
- 5
Add additional costs
Include property tax, insurance, and HOA fees
- 6
View results
See your monthly payment breakdown and total costs
Frequently Asked Questions
What is PMI and when do I need to pay it?
What is PMI and when do I need to pay it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It typically costs 0.5-1% of your loan amount annually and protects the lender if you default on the loan. You can usually remove PMI once you reach 20% equity in your home.
What is the 28/36 rule for mortgage affordability?
What is the 28/36 rule for mortgage affordability?
The 28/36 rule is a guideline used by lenders: your housing expenses should not exceed 28% of your gross monthly income, and your total debt payments (including the mortgage) should not exceed 36%. This helps ensure you can comfortably afford your monthly payments.
Should I choose a 15-year or 30-year mortgage?
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significantly on total interest paid and builds equity faster. A 30-year mortgage has lower monthly payments, making it more affordable month-to-month, but you'll pay more interest over the life of the loan. Choose based on your monthly budget and long-term financial goals.
What additional costs should I budget for when buying a home?
What additional costs should I budget for when buying a home?
Beyond your monthly mortgage payment, budget for: closing costs (2-5% of home price), moving expenses, home maintenance (1-2% of home value annually), utilities, HOA fees if applicable, and an emergency fund for unexpected repairs. Don't forget to factor in property tax and homeowners insurance.