MMoneyToolsHub

Mortgage Calculator

Estimate your monthly mortgage payment based on home price, down payment, interest rate, and loan term. Understand the true cost of buying a home.

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Calculator

Monthly Payment

$1,769.79

Total Payment

$637,124.57

Total Interest

$357,124.57

How It Works

A mortgage is a loan used to purchase a home, with the property serving as collateral. Your monthly payment consists of principal and interest, plus often property taxes, homeowners insurance, and PMI if your down payment is under 20%.

Our calculator focuses on the principal and interest portion of your payment. A larger down payment reduces your loan amount and can eliminate the need for private mortgage insurance.

Understanding mortgage costs helps you set realistic expectations for homeownership and ensures you choose a loan that fits your budget.

The Formula

M = P × [r(1+r)^n] / [(1+r)^n - 1]

M = Monthly payment, P = Loan principal (home price minus down payment), r = Monthly interest rate, n = Total months (years × 12)

Example

Scenario: You buy a $350,000 home with a $70,000 down payment (20%) and finance $280,000 at 6.5% for 30 years.

Result: Your monthly payment would be $1,770. Over 30 years, you'd pay $637,234 total, including $357,234 in interest.

Insight: A 20% down payment saves you from paying PMI, which typically costs 0.5-1% of the loan amount annually.

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Frequently Asked Questions

How much down payment do I need?
While 20% is ideal to avoid PMI, many conventional loans accept as little as 3-5% down. FHA loans require 3.5%, and VA and USDA loans may require 0% down for qualified borrowers.
What is a good mortgage rate in 2026?
Mortgage rates fluctuate based on economic conditions. In 2026, 30-year fixed rates typically range from 5.5% to 7.5% depending on your credit score, down payment, and loan type.
Should I choose a 15 or 30-year mortgage?
30-year mortgages have lower monthly payments but more total interest. 15-year mortgages build equity faster with lower rates but higher monthly payments. Choose based on your cash flow and goals.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) protects the lender if you default. It's typically required when your down payment is less than 20% of the home price. PMI can be removed once you reach 20% equity.
How are property taxes and insurance handled?
Many lenders collect property taxes and insurance premiums as part of your monthly payment and hold them in an escrow account to pay on your behalf when due.