Mortgage Payment Calculator
Payment Breakdown
Monthly Payment: $2,423
| Principal & Interest: | $2,023 |
| Property Tax: | $400 |
| Home Insurance: | $100 |
| PMI: | $200 |
| Total Interest Paid: | $408,280 |
| Total Loan Cost: | $728,280 |
How to Use This Mortgage Calculator
Input Fields:
- Home Price: Enter the total purchase price of the home
- Down Payment: Amount you’ll pay upfront (typically 10-20% of home price)
- Loan Term: Length of the mortgage (15, 20, 25, or 30 years)
- Interest Rate: Annual percentage rate (APR) from your lender
- Property Tax: Annual property taxes (varies by location)
- Home Insurance: Annual homeowner’s insurance premium
- PMI: Private Mortgage Insurance (required if down payment < 20%)
Understanding Your Results:
- Principal & Interest: The core loan payment
- Property Tax: Monthly portion of annual property taxes
- Home Insurance: Monthly portion of annual insurance
- PMI: Additional insurance if down payment is less than 20%
- Total Interest: Total interest paid over the life of the loan
- Total Cost: Principal plus all interest payments
Mortgage Payment Tips
💰 Down Payment Strategy
A larger down payment reduces your monthly payment and eliminates PMI when you put down 20% or more.
📊 Interest Rate Impact
Even a 0.5% difference in interest rate can save or cost thousands over the life of your loan.
⏰ Loan Term Considerations
Shorter terms mean higher monthly payments but significantly less total interest paid.
🏠 Total Housing Costs
Remember to budget for maintenance, utilities, and potential HOA fees beyond your mortgage payment.
📋 Mortgage Payment Breakdown Example
| Component | Monthly Amount | Annual Amount | Description |
|---|---|---|---|
| Principal & Interest | $2,023 | $24,276 | Core loan payment |
| Property Tax | $400 | $4,800 | Local government taxes |
| Home Insurance | $100 | $1,200 | Property protection |
| PMI | $200 | $2,400 | Private mortgage insurance |
| Total Monthly Payment | $2,723 | $32,676 | Complete housing payment |
🔍 Frequently Asked Questions
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home’s value. It protects the lender if you default on the loan.
How are property taxes calculated?
Property taxes vary by location and are typically 0.5% to 2.5% of your home’s assessed value annually. Check with your local tax assessor for accurate rates.
Should I choose a 15-year or 30-year mortgage?
15-year mortgages have higher monthly payments but lower total interest. 30-year mortgages offer lower monthly payments but cost more over time. Choose based on your budget and financial goals.
What other costs should I consider when buying a home?
Beyond your mortgage payment, budget for closing costs (2-5% of home price), moving expenses, immediate repairs, utilities, and ongoing maintenance (1-3% of home value annually).