🏠 Free Mortgage Calculator

How to Use This Calculator

Enter your home price, down payment, and interest rate to calculate your monthly mortgage payment. Add property tax, insurance, and HOA fees for a complete picture of your monthly costs.

If your down payment is less than 20%, add PMI (Private Mortgage Insurance) to see the true cost. This calculator automatically factors in all major costs so there are no surprises.

Tip: Get pre-approved by a lender to lock in your interest rate before house hunting. Rates change daily, and pre-approval shows sellers you're serious.

Example Calculation

Let's calculate a typical mortgage:

• Home Price: $350,000
• Down Payment: $70,000 (20%)
• Loan Amount: $280,000
• Interest Rate: 6.5%
• Loan Term: 30 years
• Property Tax: $3,500/year
• Insurance: $1,200/year
• Monthly P&I: $1,774
• Monthly Tax: $292
• Monthly Insurance: $100
• Total Monthly Payment: $2,166/mo

Why It Matters

Your mortgage is likely the largest monthly expense you'll have. Understanding the full cost helps you:

• Buy confidently - Know exactly what you can afford before looking at homes
• Compare loan options - See how 15-year vs 30-year affects total cost
• Budget realistically - Factor in taxes, insurance, and HOA that lenders require
• Save money - Understand how extra payments can cut years off your loan
• Avoid surprises - PMI, property taxes, and insurance add up quickly

According to the Federal Reserve, mortgage debt is the largest component of U.S. household debt. Making informed decisions now saves thousands over the life of the loan.

15-Year vs 30-Year Mortgage Comparison

Factor	30-Year	15-Year
Monthly Payment	$1,774	$2,420
Total Interest	$358,634	$155,620
Total Cost	$638,634	$435,620
Interest Saved	-	$203,014

Key insight: A 15-year mortgage saves over $200,000 in interest but requires $646 more monthly. Choose based on what you can comfortably afford.

How Much House Can I Afford?

A common rule is the 28/36 rule:

• 28% of gross income should go to housing (mortgage, taxes, insurance)
• 36% of gross income should go to all debt (housing + car + student loans + credit cards)

Example: If you earn $100,000/year ($8,333/month):

• Max housing: $8,333 × 0.28 = $2,333/month
• Max total debt: $8,333 × 0.36 = $3,000/month

Understanding Your Mortgage Payment

Your monthly payment includes:

• Principal - Paying down the loan balance
• Interest - The cost of borrowing
• Property Tax - Your share of local taxes (required)
• Homeowners Insurance - Required to protect your investment
• PMI - Required if down payment is less than 20%
• HOA - If your community has fees

Frequently Asked Questions

What is a good mortgage rate in 2026?

As of 2026, competitive 30-year fixed rates range from 6.0% to 7.0% for well-qualified buyers. Your rate depends on credit score, down payment, lender, and loan type. Shop with at least 3 lenders to compare.

How much house can I afford with $200k salary?

Using the 28% rule, $200,000/year = $16,667/month gross. Max housing = $4,667/mo. With 6.5% rate and 20% down, you could afford roughly a $650,000-700,000 home. Get pre-approved for exact numbers.

Should I pay points to lower my rate?

Points (1% of loan = 1 point) can lower your rate by 0.25%. Paying points makes sense if you plan to stay in the home 5+ years. Calculate your break-even point—how long until monthly savings exceed upfront cost.

What is PMI and when can I remove it?

PMI is Private Mortgage Insurance, required when down payment is under 20%. Once you reach 20% equity (request an appraisal), you can request its removal. FHA loans require PMI for at least 5 years even with 20% down.

Can I negotiate mortgage rates?

Yes! Rates vary between lenders by 0.25-0.5%. Get quotes from at least 3 lenders. Also negotiate—some lenders will match competitor rates. Don't forget to negotiate origination fees too.