Mortgage Calculator
Calculate your monthly mortgage payment, total interest, and full amortization schedule. Updated with current 2026 rates.
Select your location for accurate local rates
The total purchase price of the home
Select the year you plan to start the mortgage
Additional Costs (Optional)
Annual property tax (typical: 0.5-2.5% of home value)
Annual homeowners insurance (typical: $1,000-$3,000)
Required if down payment < 20%. Typical: 0.3-1.5%
Homeowners Association dues (if applicable)
Additional amount paid toward principal each month
How to Use This Mortgage Calculator
Our free mortgage calculator helps you estimate your monthly home loan payment in seconds. Enter your home price, down payment, loan term, and interest rate to get instant results. You can also add property tax, homeowners insurance, PMI, and HOA fees for a complete picture of your monthly housing costs. The interactive charts show your payment breakdown and how your balance decreases over time.
How to calculate mortgage payments
Your monthly mortgage payment is determined by three main factors:
- Loan amount — The home price minus your down payment
- Interest rate — The annual interest rate charged by your lender
- Loan term — How many years you take to repay the loan (most common is 30 years)
The formula our calculator uses: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where: M = monthly payment, P = principal, i = monthly interest rate, n = number of payments
Understanding your total costs
Beyond your monthly payment, remember to budget for:
- Property taxes — Typically 0.5-2% of home value per year
- Homeowners insurance — Usually $1,000-$3,000 per year
- PMI (Private Mortgage Insurance) — Required if down payment is less than 20%
- HOA fees — Vary by community, $0-$1,000+ per month
- Closing costs — Typically 2-5% of the loan amount
30-Year vs 15-Year Mortgage
A 30-year mortgage offers lower monthly payments but you pay more total interest over the life of the loan. A 15-year mortgage has higher monthly payments but you become debt-free faster and pay significantly less total interest.
Understanding Mortgage Costs: A Complete Guide
The Four Components of PITI
Your monthly mortgage payment consists of four components, often referred to as PITI:
- Principal — The portion of your payment that reduces your loan balance. In the early years, most of your payment goes to interest, but over time, more goes to principal. For a $320,000 loan at 6.5%, your first payment includes only $336 in principal.
- Interest — The cost of borrowing money, calculated as a percentage of your remaining balance. On a $320,000 loan at 6.5%, your first month's interest is $1,733. Over 30 years, you will pay approximately $407,000 in total interest — more than the loan itself.
- Taxes — Property taxes fund local services like schools, roads, and emergency services. Rates vary dramatically by state: New Jersey averages 2.49% while Hawaii is just 0.28%. On a $400,000 home, that's the difference between $9,960/year and $1,120/year.
- Insurance — Homeowners insurance protects against fire, theft, and liability. Average cost is $1,200-$2,500/year depending on location, coverage, and deductible. In hurricane-prone areas, wind coverage can add significantly.
Private Mortgage Insurance (PMI)
If your down payment is less than 20% of the home price, your lender will require PMI. This protects the lender (not you) if you default. PMI typically costs 0.3% to 1.5% of the loan amount annually. On a $320,000 loan at 0.5%, that's $1,600/year or $133/month added to your payment.
How to cancel PMI: Once your loan balance reaches 78% of the original home value (or 80% if you request it), federal law requires your lender to cancel PMI. You can also request early cancellation if your home appreciates enough to give you 20% equity. Use our PMI Calculator to see your specific timeline.
Extra Payments: How They Save You Thousands
Making extra payments toward your principal is one of the most powerful ways to save money. Even small amounts add up dramatically:
- $100/month extra on a $320,000 loan at 6.5% saves approximately $52,000 in interest and pays off 4 years early.
- $200/month extra saves approximately $89,000 and pays off 7 years early.
- $500/month extra saves approximately $148,000 and pays off 13 years early.
Every extra dollar you pay toward principal eliminates the interest that dollar would have accrued over the remaining loan term. This is why extra payments early in the loan have the greatest impact.
30-Year vs 15-Year Mortgage: Which Is Right for You?
A 30-year mortgage offers lower monthly payments but you pay significantly more total interest. A 15-year mortgage has higher monthly payments but you pay much less interest and build equity faster.
Example: On a $320,000 loan:
- 30-year at 6.5%: $2,023/month P&I, $408,280 total interest
- 15-year at 5.9%: $2,685/month P&I, $163,300 total interest
That's a savings of $244,980 with the 15-year loan, but your monthly payment is $662 higher. If you can afford the higher payment, the 15-year loan saves you a massive amount. Alternatively, you can get a 30-year loan and make extra payments to get similar savings with more flexibility.
Current 2026 Mortgage Rates by State
Mortgage rates vary by state due to differences in local economic conditions, foreclosure rates, and lender competition. As of 2026, average 30-year fixed rates range from approximately 6.3% to 7.0% depending on your state and credit profile. Use the state selector in our calculator to see rates specific to your location.
States with the lowest rates tend to be in the Pacific Northwest and Mountain West (Oregon, Washington, Colorado). States with the highest rates are typically in the South and Midwest. However, rates also depend heavily on your credit score, down payment, and lender.
Closing Costs Explained
When you close on a home, you'll pay 2-5% of the loan amount in closing costs. For a $320,000 loan, that's $6,400 to $16,000. These costs include:
- Lender fees: Origination fee (0.5-1%), underwriting, processing
- Third-party costs: Appraisal ($300-$500), home inspection, title search
- Prepaid items: Property taxes (3-6 months), insurance (1 year), interest (to end of month)
- Escrow and recording: Title insurance, escrow fees, government recording fees
Use our Closing Cost Calculator for a detailed estimate based on your state.
First-Time Homebuyer Programs
If you're buying your first home, several programs can help reduce your costs:
- FHA Loans: Down payment as low as 3.5% with credit scores of 580+. Use our FHA Loan Calculator.
- VA Loans: Zero down payment for veterans and active military. No PMI required. Use our VA Loan Calculator.
- Conventional 97: 3% down payment with PMI for first-time buyers.
- State and local programs: Many states offer down payment assistance, grants, and below-market rates. Check your state's housing finance agency.
Frequently Asked Questions
How much house can I afford with a $4,000 monthly payment?
With a $4,000 monthly mortgage payment (including taxes and insurance) at a 6.5% interest rate on a 30-year loan, you could afford approximately a $500,000-$550,000 home with a 20% down payment. Use our calculator above to adjust the numbers for your specific situation.
What is a good mortgage interest rate in 2026?
As of 2026, a competitive 30-year fixed mortgage rate ranges from 6.3% to 6.8% depending on your credit score, down payment, and lender. Rates vary by state, with states like Oregon, Washington, and Colorado typically offering slightly lower rates. Check current rates using the state selector above.
Should I choose a 15-year or 30-year mortgage?
Choose a 15-year mortgage if you want to pay off your home faster and save on total interest (typically 50-60% less than a 30-year loan). Choose a 30-year mortgage if you need lower monthly payments and want flexibility in your budget. Both have pros and cons - use our calculator to compare the total costs.
How much down payment do I need?
While you can put down as little as 3-5% with some loan programs (like FHA loans), putting down 20% or more has significant advantages: you avoid Private Mortgage Insurance (PMI), get better interest rates, and own more of your home from day one.
What is PMI and when is it required?
PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. It typically costs 0.3-1.5% of your loan amount annually. Once you reach 20% equity in your home (either through payments or appreciation), you can typically request to cancel PMI.
What's included in a monthly mortgage payment?
Your monthly payment (PITI) includes: Principal (paying down the loan), Interest (cost of borrowing), Taxes (property taxes collected by your lender), and Insurance (homeowners insurance). Some loans also include HOA fees.
How do I get the lowest mortgage rate?
To qualify for the lowest rates: improve your credit score (740+), save for a larger down payment (20%+), reduce your debt-to-income ratio, shop around with multiple lenders, and consider paying discount points upfront. Even a 0.5% difference in rate can save you $50,000+ over 30 years.
What are closing costs and how much are they?
Closing costs typically range from 2-5% of the loan amount and include lender fees, appraisal, title insurance, escrow fees, and prepaid items (property taxes, homeowners insurance). For a $320,000 loan, expect to pay $6,400-$16,000 in closing costs.