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HomeCurrent RatesRate Forecast 202630-Year Fixed vs ARMBest Refinance RatesRate TrendsLowest Rate GuideMortgage CalculatorGlobal RatesWhen Will Rates DropMortgage NewsMortgage GuideResourcesFAQAbout

Mortgage Calculator - Free Tool with Rate & Payment Estimates

Calculate your monthly mortgage payments with our free, interactive calculator. Get accurate estimates based on current mortgage rates, compare different loan scenarios, and make informed decisions about your home purchase or refinance.

Loan Details

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Loan Amount: $320,000

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Check current rates to ensure accuracy

Additional Costs (Optional)

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Required if down payment < 20%

Your Monthly Payment

Estimated Monthly Payment

$0

Principal & Interest

$0

Property Tax

$0

Home Insurance

$0

PMI

$0

Payment Breakdown

Loan Summary

💡 Money-Saving Tips

  • •Increasing your down payment to 20% eliminates PMI and can lower your rate
  • •A 15-year term typically offers rates 0.5% lower and saves massive interest
  • •Shop multiple lenders—even 0.25% rate difference saves over $20,000 on a $400k loan

Why Use Our Mortgage Calculator?

Professional-grade calculations with real-time mortgage rates data

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Accurate Estimates

Our calculator uses current mortgage rates from top lenders to provide realistic payment estimates. Updated daily with the latest rate data.

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Instant Results

Get immediate calculations as you adjust loan amounts, interest rates, and terms. Compare scenarios in real-time to find your best option.

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Complete Breakdown

See detailed amortization schedules, total interest costs, and payment breakdowns including principal, interest, taxes, and insurance.

How to Use This Mortgage Calculator

Step-by-step guide to calculating your mortgage payments

Step 1: Enter Loan Details

  • 1Input your home price or the amount you plan to borrow. This is your principal loan amount that mortgage rates will be applied to.
  • 2Enter your down payment amount or percentage. A larger down payment typically means better mortgage rates and lower monthly payments.
  • 3Select your loan term (15, 20, or 30 years). Shorter terms usually have lower mortgage rates but higher monthly payments.

Step 2: Add Rate & Costs

  • 4Input the current mortgage rate or use our suggested rates based on today's market. Even small rate differences significantly impact your payment.
  • 5Include property taxes and homeowners insurance for a complete payment estimate. These vary by location but are essential costs.
  • 6Add PMI if your down payment is less than 20%. Review your amortization schedule to see how payments change over time.

Understanding Your Mortgage Calculator Results

What each number means for your financial future

Monthly Payment Breakdown

Your monthly mortgage payment consists of four components often called PITI: Principal, Interest, Taxes, and Insurance. The calculator shows each component so you understand exactly where your money goes each month.

Principal: The amount borrowed that pays down your loan balance. In the early years, most of your payment goes toward interest, but this shifts over time.

Interest: The cost of borrowing, calculated based on your mortgage rate. This is where shopping for the best mortgage rates saves you thousands over the life of your loan.

Total Cost Analysis

The calculator reveals the total interest you'll pay over the life of your loan. This number often surprises borrowers—it can exceed the principal amount on a 30-year mortgage.

Impact of Mortgage Rates: A 1% difference in mortgage rates on a $300,000 loan means over $60,000 in additional interest payments over 30 years. This demonstrates why comparing mortgage rates matters.

Amortization: Your payment schedule shows how each payment is allocated. Watching your principal grow and interest shrink over time is motivating for many homeowners.

Compare Different Mortgage Rates & Scenarios

See how different rates and terms affect your payments

30-Year Fixed

$1,643

Monthly payment on $300k loan at 6.5%

  • ✓ Lower monthly payment
  • ✓ More buying power
  • ✓ Flexibility for prepayment
  • ✗ Higher total interest cost
  • ✗ Higher mortgage rates

20-Year Fixed

$2,054

Monthly payment on $300k loan at 6.25%

  • ✓ Moderate payment increase
  • ✓ Significant interest savings
  • ✓ Lower mortgage rates
  • ✗ Less monthly flexibility
  • ✗ Higher qualifying income needed

15-Year Fixed

$2,577

Monthly payment on $300k loan at 5.75%

  • ✓ Lowest mortgage rates
  • ✓ Maximum interest savings
  • ✓ Build equity faster
  • ✗ Highest monthly payment
  • ✗ Most difficult to qualify

Use the calculator above to input your specific loan details and see personalized comparisons based on current mortgage rates in your area.

Calculate Your Payments

The True Cost of Mortgage Rates

Rate Comparison on $400,000 Loan (30-Year)

RateMonthlyTotal Interest
5.5%$2,271$417,560
6.5%$2,528$510,080
7.5%$2,796$606,560

A 2% rate difference costs $189,000 more in interest over 30 years. This shows why monitoring mortgage rates and locking at the right time is crucial.

Strategies to Lower Your Rate

  • ✓Improve Credit Score: Each 20-point increase can drop your rate by 0.25% or more
  • ✓Larger Down Payment: 20%+ down eliminates PMI and often secures better mortgage rates
  • ✓Shop Multiple Lenders: Rate quotes can vary 0.5% or more between lenders
  • ✓Buy Points: Paying upfront fees can permanently lower your mortgage rate
  • ✓Shorter Term: 15-year mortgages typically offer rates 0.5-0.75% lower than 30-year options

How Much House Can You Afford?

Use this calculator to determine your comfortable price range

The 28/36 Rule

Financial experts recommend the 28/36 rule for mortgage affordability:

  • 28%of gross monthly income should go toward housing expenses (principal, interest, taxes, insurance)
  • 36%of gross monthly income should be your total debt-to-income ratio (housing + other debts)

Example: With $10,000 monthly income, aim for housing costs under $2,800 and total debt under $3,600. Use our calculator to work backward from these payment limits to find your maximum home price based on current mortgage rates.

Beyond the Calculator

Our mortgage calculator provides accurate payment estimates, but consider these additional factors when determining affordability:

  • •Closing Costs: Typically 2-5% of home price, paid upfront at closing
  • •Maintenance & Repairs: Budget 1-2% of home value annually
  • •Utility Costs: Vary significantly by location and home size
  • •HOA Fees: Can add $200-500+ monthly in some communities
  • •Furnishings & Updates: Initial costs to make the home yours
  • •Emergency Fund: Maintain 3-6 months of expenses after buying

Should You Refinance? Use Our Calculator to Decide

See if refinancing at today's mortgage rates makes sense

When Refinancing Pays Off

Refinancing mortgage rates can save you money if:

  • ✓Current rates are 0.5-1%+ below your existing rate
  • ✓You plan to stay in your home long enough to break even
  • ✓Your credit score has improved significantly
  • ✓You want to switch from ARM to fixed-rate mortgage
  • ✓You need to access home equity for major expenses

Tip: Use our calculator to compare your current loan details with new mortgage rates. If the new payment saves at least $100-150 monthly, refinancing may be worthwhile.

The Break-Even Calculation

Calculate how long it takes to recover refinancing costs:

Total closing costs$4,000
Monthly payment savings$200
Break-even point20 months

If you plan to stay in your home beyond 20 months, refinancing saves money. The longer you stay, the more you save as lower mortgage rates compound over time.

Important: When mortgage rates drop, lenders get overwhelmed. Apply to multiple lenders and lock your rate quickly once approved. Rates can change daily.

Mortgage Calculator FAQ

Common questions about calculating mortgage payments

How accurate are mortgage calculator estimates?

Our calculator provides highly accurate estimates based on the loan details and mortgage rates you input. However, final payments may vary slightly based on exact property tax assessments, insurance premiums, and lender-specific fees. Always get official Loan Estimates from lenders for final numbers.

Should I include taxes and insurance in calculations?

Absolutely. Including property taxes and insurance gives you your true monthly payment (PITI). Many borrowers focus only on principal and interest, then get surprised by the additional costs. Our calculator factors in all components for complete accuracy.

What mortgage rate should I use in the calculator?

Use current rates for your loan type and credit profile. Check our current mortgage rates page for today's averages. For planning purposes, add 0.25-0.5% to quoted rates to account for daily fluctuations between application and closing. Rates change frequently—this is why timing your lock matters.

How does my credit score affect the calculated payment?

Credit scores significantly impact the mortgage rates you're offered. A 760+ score typically gets the best rates, while scores below 620 face higher rates or difficulty qualifying. For every 20-point improvement, you might save 0.25% on your rate, which our calculator shows can mean thousands in savings.

What's the difference between interest rate and APR?

The interest rate is the annual cost of borrowing money. APR (Annual Percentage Rate) includes the rate plus other costs like points and fees. Our calculator uses the interest rate for payment calculations, but when comparing loan offers, always compare APRs for the true cost.

Can this calculator be used for refinancing?

Yes! Simply input your remaining loan balance as the loan amount, current mortgage rate, and compare with new rates. This shows potential monthly savings and helps you decide if refinancing makes sense given current mortgage rates and closing costs.

Ready to Compare Current Mortgage Rates?

Now that you've calculated your estimated payments, see today's actual mortgage rates from top lenders. Lock in a great rate and start your home buying journey with confidence.

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