Calculate Your Mortgage Payment
Get an accurate estimate of your monthly mortgage payment including taxes, insurance, and HOA fees
Understanding your potential mortgage payment is a crucial first step in the home buying process. Use the calculator below to see how different factors like down payment, interest rate, and loan term affect your monthly payment.
Before You Calculate
📝 Gather Your Information
Have your target home price, expected down payment amount, estimated interest rate (check current rates), and information about property taxes and insurance costs in your area ready before you start.
🔍 Consider All Costs
Don't forget to include property taxes, homeowners insurance, PMI (if putting down less than 20%), and HOA fees if applicable. These can significantly impact your total monthly payment.
💰 Try Different Scenarios
Experiment with different down payment amounts, interest rates, and loan terms to see how they affect your monthly payment. This helps you understand what's most affordable for your situation.
Understanding Your Results
Your monthly mortgage payment consists of several components that work together to determine your total cost.
🏠 Principal & Interest
This is the core of your mortgage payment. Principal is the amount you borrowed, and interest is what the lender charges you to borrow that money. Early in your loan, more goes toward interest; later, more goes toward principal.
🏛️ Property Taxes
Annual property taxes are typically divided into 12 monthly payments held in escrow. Tax rates vary by location and are based on your home's assessed value. These can increase over time as property values rise.
🛡️ Homeowners Insurance
Required by lenders to protect against damage to the home. This is also typically held in escrow and paid monthly. Costs vary based on location, home value, coverage level, and risk factors.
🔒 PMI (If Applicable)
Private Mortgage Insurance is required if you put down less than 20%. It protects the lender if you default. Once you reach 20% equity, you can request to have PMI removed, lowering your monthly payment.
What Affects Your Mortgage Payment?
Down Payment Size
A larger down payment reduces your loan amount, which lowers your monthly payment. It can also help you avoid PMI if you put down 20% or more, further reducing your costs. However, make sure to keep enough savings for emergencies and closing costs.
Interest Rate
Even a small difference in interest rate can have a big impact over the life of your loan. Your rate depends on your credit score, down payment, loan type, and current market conditions. Shopping around and improving your credit score can help you secure a better rate.
Loan Term
A 30-year mortgage has lower monthly payments but costs more in interest over time. A 15-year mortgage has higher monthly payments but builds equity faster and costs less overall. Choose based on your budget and long-term financial goals.
Property Taxes & Insurance
These costs vary significantly by location and home value. Property taxes can range from less than 1% to over 2% of your home's value annually. Insurance costs depend on location, home characteristics, and coverage levels. Research local rates for accurate estimates.
Ready for the Next Step?
Get Pre-Approved
Contact a lender to get pre-approved and lock in your actual rate and loan amount.
Start Your Search
With your budget clear, begin looking at homes within your comfortable price range.
Work With an Agent
Partner with an experienced agent who can guide you through the entire process.
Questions About Your Mortgage Options?
Let's discuss your specific situation and help you understand all your financing options to make the best decision for your future.
(401) 443-9571