Calculate Your Mortgage Payment

Loan Details

$
20% down payment
$
Current 30-Year Rate: Loading...
%

Additional Costs

$ /year
$ /year
%
PMI required (down payment < 20%) No PMI required (down payment ≥ 20%)
$ /month

Estimated Monthly Payment

$0

Principal & Interest: $0 | Taxes & Insurance: $0

Payment Breakdown

  • Principal & Interest $0
  • Property Tax $0
  • Home Insurance $0
  • PMI $0
  • HOA $0

Loan Summary

Loan Amount $0
Interest Rate 0%
Total of Payments $0
Total Interest $0
Payoff Date -
PMI Removal -

15 vs 30 Year Comparison

15-Year 30-Year
Monthly P&I $0 $0
Total Interest $0 $0
15-Year Saves $0

Balance Over Time

Amortization Schedule

Year Payment Principal Interest Balance

Understanding Your Mortgage Payment

What is a Mortgage Payment?

A mortgage payment is the monthly amount you pay to your lender to repay your home loan. Most mortgage payments consist of four components, often called PITI:

  • Principal - The portion that reduces your loan balance
  • Interest - The cost of borrowing money
  • Taxes - Property taxes collected by your local government
  • Insurance - Homeowner's insurance to protect your property

Understanding PMI (Private Mortgage Insurance)

PMI is required by lenders when you make a down payment of less than 20% of the home's purchase price. It protects the lender if you default on your loan.

Good News: PMI doesn't last forever. Under the Homeowners Protection Act, lenders must automatically cancel PMI when your loan balance reaches 78% of the original home value, or you can request cancellation at 80% loan-to-value.

15-Year vs 30-Year Mortgage

30-Year Mortgage

  • Lower monthly payments
  • More flexibility in budget
  • Higher total interest paid
  • Best for: Maximizing cash flow

15-Year Mortgage

  • Higher monthly payments
  • Lower interest rates typically
  • Significantly less total interest
  • Best for: Building equity quickly

How Interest Rates Affect Your Payment

Interest rates have a significant impact on your monthly payment and total cost of the loan. For a $300,000 30-year mortgage:

  • At 6%: Monthly P&I = $1,799 | Total Interest = $347,515
  • At 7%: Monthly P&I = $1,996 | Total Interest = $418,527
  • At 8%: Monthly P&I = $2,201 | Total Interest = $492,469

A 1% increase in rate adds about $200/month and $70,000+ in total interest over the life of the loan!

Tips to Lower Your Monthly Payment

  1. Increase your down payment - More down = smaller loan = lower payment
  2. Shop for better rates - Even 0.25% lower can save thousands
  3. Improve your credit score - Better credit = better rates
  4. Consider a longer term - Spreads payments over more time
  5. Remove PMI early - Pay down to 80% LTV and request removal
Data Sources: Current mortgage rates are sourced from the Federal Reserve Economic Data (FRED) - specifically the weekly Primary Mortgage Market Survey by Freddie Mac. Rates are updated weekly.

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Important Disclaimer

This calculator provides estimates for informational purposes only. Actual loan terms, rates, and payments may vary based on your specific situation, credit score, lender requirements, and other factors. Always consult with a qualified mortgage professional before making financial decisions. This is not financial advice.