Mortgage Payment Calculator

Calculate your monthly mortgage payment including principal and interest.

Loan = Home Price - Down Payment; M = Loan x [r(1 + r)^n] / [(1 + r)^n - 1] where r = monthly rate, n = months
$350,000 home, $70,000 down (20%), 6.5% APR, 30 years: Loan = $280,000, Monthly P&I = $1,770, Total interest = $357,232

What is included in a mortgage payment?

PITI: Principal (loan paydown), Interest (lender profit), Taxes (property tax, usually escrowed), Insurance (homeowners + PMI if under 20% down). This calculator shows P&I only. Add ~$200-500/month for taxes/insurance depending on home value and location. Example: $350k home = $1,773 P&I + $400 taxes + $150 insurance + $100 PMI = $2,423 total monthly.

How much mortgage can I qualify for?

Lenders use 28/36 rule: Housing costs (PITI) under 28% of gross income, total debt under 36%. Earning $100k/year ($8,333/month)? Max $2,333 PITI, can afford $400k-450k home with 20% down. Pre-qualification: Soft check, estimate. Pre-approval: Hard credit check, verified income, binding offer. Always get pre-approved before house hunting.

15-year vs 30-year mortgage - which is better?

15-year: Higher payment, much less interest, build equity faster, typically 0.5-0.75% lower rate. 30-year: Lower payment, more flexibility, more interest paid. Example: $300k at 6% - 15yr = $2,532/mo ($155k interest), 30yr = $1,799/mo ($348k interest). Choose 30yr if tight budget or want to invest difference. Choose 15yr if can afford and want to own home faster.

How does down payment affect my mortgage?

Larger down payment: Lower monthly payment, less interest, avoid PMI (need 20%), better rates, instant equity. 20% down is ideal but not required. FHA allows 3.5%, conventional allows 3%. However, PMI adds $100-300/month until 20% equity. Example: $350k home - 20% down ($70k) vs 10% down ($35k) = $223/month difference + $150 PMI on lower down = $373/month total difference.