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Mortgage Calculator - Home Loan Payment Calculator

Free mortgage calculator to calculate monthly payments, total interest, and amortization schedule. Compare loan options and plan your home purchase.

Mortgage Calculator

Calculate the cost of your dream home

TL

The total purchase price of the property.

TL

The amount you'll pay upfront. Typically 20% minimum.

%

What percentage of home price is the down payment?

%

Annual interest rate from your lender.

Is the rate monthly or yearly?

ay

How many years to pay off the loan? Common terms: 15, 20, 30 years.

%
TL

Annual homeowner's insurance cost.

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Loan Summary

Enter your values to see results

and click the "Calculate" button

What is a Mortgage?

A mortgage is a loan used to purchase real estate. The property serves as collateral for the loan. Mortgages typically have terms of 15-30 years and require a down payment of at least 3-20%. Monthly payments include principal, interest, taxes, and insurance (PITI). Understanding your mortgage helps you make informed decisions about one of life's biggest purchases.

How to Use This Calculator

  1. Enter the home purchase price
  2. Specify your down payment amount or percentage
  3. Enter the interest rate from your lender
  4. Select the loan term (15, 20, or 30 years)
  5. Click Calculate to see your monthly payment and totals

Mortgage Payment Formula

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where M = monthly payment, P = principal (loan amount), r = monthly interest rate, n = number of payments.

Frequently Asked Questions

What is the minimum down payment for a mortgage?
Minimum down payments vary: 3% for conventional loans, 3.5% for FHA loans, 0% for VA and USDA loans. However, 20% down avoids Private Mortgage Insurance (PMI) and gets better rates.
What is the maximum mortgage term?
Most common terms are 15, 20, and 30 years. Some lenders offer 40-year terms. Longer terms mean lower monthly payments but significantly more interest paid over the life of the loan.
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It protects the lender if you default. PMI typically costs 0.5-1% of the loan annually and can be removed once you reach 20% equity.
How much of my income should go to mortgage payments?
The general rule is that your mortgage payment should not exceed 28% of your gross monthly income. Total debt payments (including mortgage) should stay under 36%. This is called the 28/36 rule.
Can I pay off my mortgage early?
Yes, most mortgages allow early payoff without penalty. Extra payments go directly to principal, reducing total interest. Even small extra payments can save thousands and shorten your loan term significantly.

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