Mortgage Calculator
Calculate your monthly mortgage payments, total interest costs, and see a complete amortization schedule. Compare Bankrate, Zillow, VA, and refinance options.
Mortgage Calculator
Monthly Payment
Based on a 30-year loan
Understanding Mortgage Payments
A mortgage is a loan used to purchase real estate, typically a home. Understanding how mortgage payments are calculated can help you make informed decisions about your home purchase.
How Mortgage Payments Are Calculated
Your monthly mortgage payment consists of four main components: principal, interest, taxes, and insurance (PITI). The calculator above focuses on principal and interest, which make up the core loan payment.
Key Factors Affecting Your Payment
- Loan Amount: The total amount you borrow to purchase the home
- Interest Rate: The annual percentage rate (APR) charged by the lender
- Loan Term: The length of time to repay the loan (typically 15, 20, or 30 years)
- Down Payment: The amount you pay upfront, which affects your loan amount
Benefits of a Larger Down Payment
Making a larger down payment can reduce your monthly payment, lower your interest costs, and potentially eliminate the need for private mortgage insurance (PMI).
Fixed vs. Adjustable Rate Mortgages
Fixed-rate mortgages maintain the same interest rate throughout the loan term, providing predictable payments. Adjustable-rate mortgages (ARMs) have rates that can change periodically, potentially offering lower initial rates but with payment uncertainty.