Mortgage Calculator

A mortgage calculator estimates your monthly mortgage payment based on loan amount, interest rate, and loan term. It helps you understand how much house you can afford and plan your budget accordingly.

Monthly payment uses the standard amortization formula: M = P × (r(1+r)^n) / ((1+r)^n - 1), where P is principal, r is monthly interest rate, and n is total number of payments.

Principal (loan amount), Interest (bank charge), Taxes (property tax), and Insurance (homeowner's insurance). Together these are called PITI.

20% down payment avoids Private Mortgage Insurance (PMI). However, many lenders accept 3-5% down for first-time home buyers with PMI.

15-year loans have higher monthly payments but lower total interest. 30-year loans have lower monthly payments but you pay more interest overall.

An amortization schedule shows how each payment splits between principal and interest over the life of the loan. Early payments are mostly interest.

Most lenders use the 28/36 rule: Housing expenses shouldn't exceed 28% of gross monthly income, and total debt shouldn't exceed 36%.

Private Mortgage Insurance (PMI) protects lenders when down payment is under 20%. You can request PMI removal when loan balance reaches 80% of home value.

Yes. Higher credit scores (740+) qualify for lower interest rates. Lower scores may require higher rates or FHA loans with lower down payments.

Closing costs are fees paid at settlement, typically 2-5% of loan amount. They include appraisal, title insurance, origination fees, and prepaid taxes/insurance.