Mortgage Calculator
Calculate your monthly mortgage payment instantly. Enter home price, down payment, loan term, and interest rate to see your payment breakdown — including principal, interest, and total cost of ownership.
Payment Breakdown
Understanding Your Mortgage
A mortgage is a loan used to buy property. The property serves as collateral. Understanding the key terms helps you make better borrowing decisions and save thousands in interest.
Fixed vs Adjustable Rate
Fixed-rate mortgages lock your interest rate for the entire term. Adjustable-rate mortgages (ARMs) start lower but can increase after the initial period. Fixed rates offer predictability; ARMs can save money short-term.
Down Payment Impact
A 20% down payment eliminates private mortgage insurance (PMI), which typically costs 0.5–1% of the loan annually. Even small increases in your down payment significantly reduce total interest paid.
15 vs 30 Year Terms
A 15-year mortgage has higher monthly payments but saves you tens of thousands in interest. A $280,000 loan at 6.5% costs $357,000 in interest over 30 years but only $157,000 over 15 years.
Smart Home Buying Strategies
The decisions you make before and during the home buying process can save or cost you tens of thousands of dollars over the life of your mortgage.
Get Pre-Approved First
Pre-approval shows sellers you're serious and tells you exactly what you can afford. It locks in your rate for 60–90 days and reveals any credit issues early. Always get pre-approved before house hunting.
Shop Multiple Lenders
Rate differences of 0.25–0.50% between lenders are common. On a $300,000 loan, 0.25% saves $15,000+ over 30 years. Get quotes from at least 3 lenders — banks, credit unions, and online lenders.
Consider Buying Points
Mortgage points (1% of loan amount) reduce your rate by 0.25%. On a $300,000 loan, one point costs $3,000 but saves $50/month. If you plan to stay 5+ years, buying points typically pays for itself.
Time Your Purchase
Winter months (Nov–Feb) typically have less competition and lower prices. Sellers during holidays are often motivated. Spring brings more inventory but also more buyers. Late summer can also offer deals as sellers want to close before school starts.
Budget for Hidden Costs
Closing costs run 2–5% of the purchase price ($7,000–$17,500 on $350K). Plus home inspection ($300–$500), appraisal ($300–$500), and moving costs. Budget 3–6% above your down payment for these expenses.
Don't Skip the Inspection
A $400 home inspection can reveal $20,000+ in hidden problems. Foundation issues, roof damage, plumbing problems, and mold are common discoveries. Never waive inspections to win a bidding war — the risk isn't worth it.
Ways to Save on Your Mortgage
Once you have a mortgage, these strategies can save you thousands in interest and help you build equity faster.
Make Extra Principal Payments
Adding $100/month to a $280,000 mortgage at 6.5% saves $62,000 in interest and pays off the loan 5 years early. Even one extra payment per year saves over $30,000 and cuts 4 years from a 30-year term.
Refinance When Rates Drop
Refinancing when rates drop 0.75–1% or more can save hundreds per month. A $280,000 loan refinanced from 7% to 6% saves $184/month ($66,000 over the remaining term). Factor in closing costs (2–3%) to calculate your break-even point.
Bi-Weekly Payments
Paying half your mortgage every two weeks results in 26 half-payments (13 full payments) instead of 12. That one extra annual payment saves $30,000+ in interest on a $280,000 30-year mortgage and pays it off 4–5 years early.
Explore Our Financial Tools
Free calculators to help you budget, save, invest, and plan your financial future. Every tool runs in your browser — no sign-up required.
Budget Calculator
Create a complete monthly budget and track your income vs expenses with real-time visual breakdowns.
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Visualize the power of compound interest and see how your money multiplies across different timeframes.
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Estimate your portfolio growth based on initial investment, contributions, and expected market returns.
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Calculate monthly mortgage payments, total interest, and see a full amortization breakdown.
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Compute monthly payments and total cost for any loan type — personal, auto, or student.
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Sum up your assets and liabilities to get a clear snapshot of your total financial health.
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Plan your retirement by projecting how your savings will grow based on age, contributions, and expected returns.
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Convert your salary between hourly, daily, weekly, bi-weekly, monthly, and annual pay periods instantly.
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Measure the return on any investment by comparing your initial cost against the final value over time.
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Project the future value of a lump sum or series of payments with customizable compounding frequency.
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Determine todays value of a future sum using discount rates — essential for smart investment decisions.
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Set a savings target and discover exactly how much you need to save each month to reach it on time.
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See how consistent monthly deposits grow over time with compound interest and track your wealth journey.
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Understand how inflation erodes purchasing power and calculate the real value of your money over time.
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Find the true annual cost of any loan by factoring in fees, points, and charges beyond the basic interest rate.
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Calculate Annual Percentage Yield and see how compounding frequency affects your savings growth over time.
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Estimate monthly car payments, total interest, and compare loan terms to find the best auto financing deal.
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Calculate personal loan payments, compare rates, and see how extra payments accelerate your payoff timeline.
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Plan your education debt repayment with payment estimates, plan comparisons, and extra payment savings analysis.
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Calculate your Financial Independence number and discover how many years until you can retire early.
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Track your FI ratio, measure passive income coverage, and map your journey to financial freedom.
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Analyze every dollar in and out to calculate net cash flow, identify leaks, and optimize spending.
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Calculate your true spending power after taxes and essential expenses to plan smarter financial decisions.
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Common questions about mortgages, payments, and home buying.