Calculate your monthly mortgage payment, total interest, and view a full year-by-year amortization schedule.
A mortgage calculator uses the standard amortization formula to determine your fixed monthly payment based on the loan amount, interest rate, and loan term. Each month, a portion of your payment goes toward paying down the principal balance, and the rest covers interest charges. In the early years of a mortgage, most of your payment goes toward interest, but this gradually shifts toward principal over time.
Your total monthly housing cost typically includes more than just principal and interest (P&I). Property taxes, homeowners insurance, and possibly private mortgage insurance (PMI) if your down payment is below 20% are additional expenses. This calculator focuses on the P&I portion, which is usually the largest component. A larger down payment reduces your loan amount, eliminating the need for PMI and lowering your monthly obligation.
A 30-year mortgage offers lower monthly payments, making homeownership more accessible. However, a 15-year mortgage typically comes with a lower interest rate and saves you a significant amount in total interest over the life of the loan. For example, on a $300,000 loan at 6.5%, switching from 30 years to 15 years could save over $200,000 in interest, though your monthly payment would be roughly 50% higher.
Improving your credit score above 740, making a down payment of at least 20%, keeping your debt-to-income ratio below 36%, and shopping multiple lenders can all help you secure a lower interest rate. Even a 0.25% reduction in rate on a $350,000 loan can save over $15,000 in interest over 30 years. Consider buying discount points if you plan to stay in the home long-term.
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