FREE MORTGAGE CALCULATOR
Mortgage Calculator
| Category | Monthly | Total |
|---|---|---|
| Mortgage (P&I) | $0 | $0 |
| Property Tax | $0 | $0 |
| Home Insurance | $0 | $0 |
| Other Costs | $0 | $0 |
| Total Out-of-Pocket | $0 | $0 |
How to Use the Mortgage Payment Calculator
Our tool is designed to be the ultimate mortgage estimator, giving you the power of a bank rate mortgage calculator right from your browser.
Step 1: Enter Home Price & Down Payment Start by entering the total purchase price. Use the down payment calculator section to input your initial cash contribution. You can toggle between a fixed dollar amount or a percentage (e.g., 20%).
Step 2: Set Loan Term & Interest Rate Input your loan lifespan (typically 15 or 30 years) and the interest rates today. If you aren’t sure, check our mortgage rates today chart or input the average mortgage interest rate (currently around 6.5% – 7.0%).
Step 3: Advanced Options (Taxes & Insurance) Unlike a basic google mortgage calculator, our tool allows you to click “Include Taxes & Costs Below.” Here, you can act as a closing cost calculator and pmi calculator by adding property taxes, homeowner’s insurance, and HOA fees.
Step 4: Analyze the Results Click “Calculate” to generate your monthly mortgage payment. View the dynamic donut chart to see exactly how much of your money goes toward interest versus equity.
In This Page
What is a Mortgage?
A mortgage is a loan secured by property, typically real estate, where the lender helps the buyer pay the seller. The buyer agrees to repay this money over a set period, usually 15 or 30 years in the U.S..
Your monthly payment is primarily split into two parts:
Principal: The original amount borrowed.
Interest: The cost paid to the lender for using the money.
In the U.S., the most common option is the conventional 30-year fixed-interest loan, representing 70% to 90% of all mortgages.
Key Components of a Home Loan
To use a mortgage payment calculator effectively, you must understand the input variables:
Loan Amount: This is the purchase price minus your down payment.
Down Payment: While lenders typically prefer 20%, some borrowers put down as low as 3%. However, if you contribute less than 20%, you must pay Private Mortgage Insurance (PMI) until your loan balance drops below 80% of the home’s original price.
Interest Rate: This is the cost of borrowing. Rates can be fixed (FRM) or adjustable (ARM). ARMs may start 0.5% to 2% lower than fixed rates but transfer market risk to the borrower.
Breaking Down PITI: What is in Your Payment?
When you ask, “what is the current mortgage rate?” you are only looking at one piece of the puzzle. A true house payment calculator must account for PITI:
Principal: The money that goes toward paying off the loan balance.
Interest: The cost of borrowing money. In the early years of a 30 year fixed mortgage, your payments are mostly interest.
Taxes: Property taxes vary wildly by location (e.g., mortgage calculator nj results will differ from mortgage calculator florida due to tax rates).
Insurance: Mortgage lenders require hazard insurance. If you put down less than 20%, you will also need to calculate mortgage insurance (PMI).
Our mortgage calculator with taxes and insurance breaks these down into a clear table so you aren’t blindsided by the total “Out-of-Pocket” cost.
Amortization: Understanding Your Loan Schedule
One of the most powerful features of this tool is its ability to function as a mortgage amortization calculator.
What is Amortization? It is the process of paying off debt with a fixed repayment schedule in regular installments over time.
Early Years: Your payment is primarily interest.
Later Years: Your payment is primarily principal.
By using our loan amortization calculator, you can see your “Payoff Date” instantly. Want to become debt-free sooner? Use this as a mortgage payment calculator with extra payments logic—simply calculate a shorter term (e.g., 15 years instead of 30) to see how much interest you save. This effectively works as a mortgage payoff simulator.
Current Mortgage Rates & Loan Types
Finding the lowest mortgage rates depends on the loan type you choose. Our calculator adapts to all major loan structures:
30-Year Fixed Mortgage Rate
This is the most popular conventional mortgage rates option. Your interest rate remains the same for the life of the loan, providing stability. Use our 30 year mortgage calculator to see if this fits your budget.
FHA Loan Calculator
Backed by the Federal Housing Administration, these loans allow for lower credit scores and smaller down payments (as low as 3.5%). Use our tool to calculate fha mortgage payments, but remember to include the Mortgage Insurance Premium (MIP) in the “PMI” field.
Interest-Only Loan Calculator
Real estate investors often prefer interest only mortgage calculator tools. This is where you pay only the interest for a set period. You can simulate this by setting the “Loan Term” very high or adjusting the amortization inputs.
Land & Construction Loans
Buying a plot? Use this as a land loan calculator or land payment estimator. For building projects, it functions as a construction loan calculator—just ensure you account for the typically higher housing interest rates today associated with these riskier loans.
Advanced Features: Taxes, PMI, and HOA
Many first-time buyers are shocked when their estimated monthly mortgage payment is higher than expected. This is usually due to “hidden” costs.
Property Taxes: A mortgage calculator with taxes is essential. The national average is around 1.1%, but in places like New Jersey or Texas, it can be over 2%.
HOA Fees: Buying a condo? Don’t forget the Homeowners Association fee. Our tool lets you add this as a monthly dollar amount.
PMI (Private Mortgage Insurance): If you don’t put 20% down, lenders charge PMI. Use our built-in pmi calculator logic by entering a percentage (usually 0.5% – 1%) in the advanced section.
State-Specific Mortgage Considerations
Location dictates your housing interest rates and closing costs.
Mortgage Calculator California: High home prices mean jumbo loans are common. Ensure you check mortgage lenders near me for competitive jumbo rates.
Mortgage Calculator Texas: While there is no state income tax, property taxes are high. Use the “Property Taxes” dropdown in our tool to input the exact dollar amount from your county assessor.
Mortgage Calculator Florida: Factor in higher home insurance costs due to hurricane zones.
Mortgage Calculator NY & NJ: Be prepared for high closing costs and property taxes.
Mortgage Calculator Ohio, PA, NC: These states often offer more affordable entry points, but verify the current house mortgage rates locally.
- FAQs
1. How do I calculate my mortgage payment manually?
The mortgage payment formula is complex: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]. Instead of doing this math, use our free mortgage payment calculator above. It handles the exponential math instantly.
2. What is a good interest rate today?
Interest rates today fluctuate based on the Federal Reserve. A “normal” rate historically is around 5-7%, though we have seen 30-year mortgage rates today vary wildly. Check the daily mortgage rates section on major financial news sites for real-time data.
3. What are closing costs?
Closing costs are fees paid at the end of the transaction (appraisal, title, etc.). While this is primarily a monthly mortgage calculator, you can estimate these by adding them to your “Down Payment” or “Other Costs” to see the total cash to close.
4. Can I use this for other loans?
Absolutely. It functions perfectly as a personal loan calculator, auto loan calculator, or general loan payment calculator. Just enter the loan amount and interest rate.