Mortgage Calculator
Calculate your monthly mortgage payment including principal and interest.
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Mortgage Calculator
Understanding Your Mortgage
A mortgage is a long-term loan used to finance the purchase of real estate. Our mortgage calculator helps you estimate your monthly payment based on the loan amount, interest rate, and term. Understanding your mortgage payment helps you determine how much home you can afford and compare different loan scenarios.
Mortgage Calculator Formula
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]\n\nWhere P = loan amount, r = monthly rate (annual rate ÷ 12), n = number of payments
Frequently Asked Questions
What does a mortgage payment include?
A full mortgage payment (PITI) includes: Principal (loan repayment), Interest (lender's fee), Property Taxes (escrowed monthly), and Insurance (homeowner's plus PMI if applicable). Our calculator covers principal and interest; add 20–30% for taxes and insurance.
How does the down payment affect my mortgage?
A larger down payment reduces your principal, lowering monthly payments and total interest paid. A down payment of 20% or more typically eliminates the need for Private Mortgage Insurance (PMI), which adds 0.5–1.5% to your annual costs.
What is an amortization schedule?
An amortization schedule shows each monthly payment broken down into principal and interest. In the early years, most of each payment is interest. Over time, the principal portion grows and the interest shrinks, until the loan is fully paid off.
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