Mortgage Calculator
Calculate your full monthly mortgage payment with tax, insurance, and PMI.
โน๏ธAbout This Calculator
Here's what nobody tells you at the open house: a $400,000 home at 7% interest over 30 years costs $558,036 in interest alone โ more than the house itself. And that's just principal and interest. Add 1.2% property tax ($400/month), insurance ($125/month), and PMI if you put less than 20% down, and the real monthly cost jumps 30-40% above the "mortgage payment" number agents quote. This calculator shows everything: P&I, property tax, insurance, PMI, the full monthly total, and a year-by-year amortization schedule. Knowing the complete picture before you make an offer is the difference between buying a home and buying a financial trap.
Frequently Asked Questions
What does this calculator include?
Everything a real mortgage costs monthly: principal and interest (the loan payment), property tax (based on the rate you enter), homeowner's insurance, and PMI if your down payment is under 20%. Most online calculators only show P&I โ which is why so many first-time buyers are shocked when their actual payment is $400-700 higher than expected.
How much house can I afford?
The 28/36 rule: spend no more than 28% of gross monthly income on housing (all-in: PITI), and no more than 36% on total debt. Earning $6,000/month gross? Your housing budget caps at $1,680. With a car payment and student loans totaling $400, total debt limit is $2,160, leaving $1,760 for housing. Banks might approve you for more โ that doesn't mean you should take it.
15-year vs 30-year: which actually saves more?
Run the numbers yourself: $300,000 at 7%. The 30-year costs $718,527 total ($418k in interest). The 15-year costs $484,968 total ($185k in interest). You save $233,559 โ but the monthly payment jumps from $1,996 to $2,696. If that extra $700/month would just sit in a checking account, go 15-year. If you'd invest it at 8%+, the 30-year might actually build more wealth.
What is PMI and when does it disappear?
PMI kicks in when you put less than 20% down. It costs 0.3-1.5% of the loan per year, so on a $320,000 loan that's $80-400/month. It automatically drops off once you hit 20% equity (you can request removal even earlier at most lenders). Quickest way to kill PMI: make extra principal payments. On a $350,000 home with 10% down, paying $200 extra monthly could eliminate PMI 3 years sooner.
How much down payment do I actually need?
Depends on the loan type. Conventional: 3% minimum. FHA: 3.5%. VA (military): 0%. USDA (rural): 0%. But "can" and "should" are different โ 5% down on a $400,000 house means $380,000 borrowed, PMI of $150-300/month, and you're underwater if prices dip 5%. Aim for 10% minimum, 20% if you can swing it.
Do extra mortgage payments actually make a big difference?
Huge difference. $300,000 mortgage at 7% for 30 years: normal payments = $718,527 total. Add $200/month extra to principal = $619,000 total, paid off in 23.5 years. That's $99,500 saved and 6.5 years of payments erased, for $200 extra that you probably spend on subscriptions you forgot about.
Should I pay off my mortgage early?
It's a math-vs-psychology question. If your mortgage rate is 7% and investments return 10%+, investing wins mathematically. But many people value the security of owning their home outright โ the guaranteed 7% "return" of paying off debt has zero risk. A balanced approach: invest enough for employer 401k match, then split extra funds between investing and extra mortgage payments.
What is a good mortgage rate?
Mortgage rates fluctuate daily with economic conditions. Historically, 30-year fixed rates have averaged 7-8% over the long term. Your personal rate depends on credit score (760+ gets the best rates), down payment (larger down = lower rate), loan type, property type, and lender. Check multiple lenders โ even a 0.25% rate difference on a $300,000 loan saves over $15,000 over 30 years.