Calculate your monthly mortgage payment and see how much you'll pay over the life of your loan
Total Monthly Payment
$1,916.96
per month
Principal & Interest
$1,516.96
Property Tax
$300.00
Insurance
$100.00
Loan Amount
$240,000.00
Total Interest
$306,106.77
A mortgage is a loan used to purchase a home or property. Your monthly mortgage payment typically consists of four main components, often referred to as PITI:
In the early years of your mortgage, a larger portion of your payment goes toward interest. As time progresses, more of your payment is applied to the principal. This is called amortization.
For example, on a 30-year mortgage, you might pay mostly interest in the first 10 years, but by year 20, most of your payment goes toward reducing the principal balance.
A down payment of 20% or more helps you avoid PMI (Private Mortgage Insurance) and reduces your monthly payments.
A 15-year mortgage has higher monthly payments but significantly lower total interest compared to a 30-year loan.
Even small extra payments toward principal can save thousands in interest and shorten your loan term.
A difference of just 0.5% in interest rate can save you tens of thousands over the life of the loan.
If interest rates drop significantly, refinancing can lower your monthly payment and total interest paid.
Remember to include property taxes, insurance, HOA fees, and maintenance in your housing budget.
While 20% is ideal to avoid PMI, many lenders offer mortgages with as little as 3-5% down. FHA loans require 3.5% down, and VA loans may require no down payment for eligible veterans.
PMI (Private Mortgage Insurance) protects the lender if you default. It's typically required when your down payment is less than 20%. You can avoid it by making a 20% down payment or requesting removal once you reach 20% equity.
A 15-year mortgage builds equity faster and costs less in total interest, but has higher monthly payments. A 30-year mortgage offers lower monthly payments and more flexibility, but costs more in interest over time.
Conventional loans typically require a credit score of 620 or higher. FHA loans may accept scores as low as 580 (or 500 with 10% down). Higher scores generally qualify for better interest rates.
Fixed-rate mortgages maintain the same interest rate for the entire loan term, providing payment stability. Adjustable-rate mortgages (ARMs) have rates that change periodically, which can result in lower initial payments but potential increases later.