Mortgage Calculator
Understanding Mortgages
The mortgage calculator estimates the monthly payment and other costs associated with a home loan. Mortgages are loans secured by property, and borrowers agree to repay the loan, with interest, over a fixed term. Each monthly payment consists of principal (the amount borrowed) and interest (the cost of borrowing). Some mortgages also include an escrow portion to cover property taxes and insurancehttps://www.calculator.net/mortgage-calculator.html#:~:text=The%20Mortgage%20Calculator%20helps%20estimate,residents.
Key components of a mortgage include the loan amount, down payment, term and interest ratehttps://www.calculator.net/mortgage-calculator.html#:~:text=A%20mortgage%20usually%20includes%20the,components%20of%20a%20mortgage%20calculator. The loan amount is the purchase price minus the down payment. Down payments of 20% or more generally eliminate the need for private mortgage insurance (PMI)https://www.calculator.net/mortgage-calculator.html#:~:text=,the%20loan%20will%20be%20approved. The loan term, often 15–30 years, affects monthly payments and total interesthttps://www.calculator.net/mortgage-calculator.html#:~:text=,as%20a%20cost%20of%20borrowing. The interest rate may be fixed or adjustable; the calculator assumes a fixed ratehttps://www.calculator.net/mortgage-calculator.html#:~:text=,to.
Home ownership costs include property taxes, home insurance, PMI, HOA fees and other expenses. Property taxes are levied by local governments and average about 1.1% of property value annually in the U.S.https://www.calculator.net/mortgage-calculator.html#:~:text=,as%20property%20tax%20each%20year. Home insurance protects the owner against accidents and liabilitieshttps://www.calculator.net/mortgage-calculator.html#:~:text=,the%20property%2C%20and%20the%20coverage. PMI is required when the down payment is less than 20%https://www.calculator.net/mortgage-calculator.html#:~:text=borrower%20is%20unable%20to%20repay,of%20the%20loan%20amount. HOA fees fund community maintenance and improvementshttps://www.calculator.net/mortgage-calculator.html#:~:text=,percent%20of%20the%20property%20value. Other costs may include utilities, maintenance and repairshttps://www.calculator.net/mortgage-calculator.html#:~:text=,value%20on%20annual%20maintenance%20alone. These costs often rise over time due to inflationhttps://www.calculator.net/mortgage-calculator.html#:~:text=Costs%20Associated%20with%20Home%20Ownership,and%20Mortgages.
Borrowers can accelerate payoff or save interest by making extra payments whenever possible. Optional fields in the calculator allow annual cost increases and extra payments to model different scenarios. Results show monthly and total costs, a breakdown of expenses and an estimated payoff date.