Private Mortgage Insurance required when down payment is less than 20%. Costs 0.5-1% of loan amount per year. Cancels at 22% equity.

Should I get a 15 or 30 year mortgage?

15-year has higher monthly payments but saves 40-60% on total interest. 30-year has lower payments but costs significantly more over the loan life.

Mortgage Calculator — Calculate Your Monthly Payment | To...

Q: How much house can I afford?

Use the 28/36 rule: housing costs should not exceed 28% of gross monthly income. On $80,000/year income, maximum housing payment is around $1,867/month.

Q: What credit score do I need for a mortgage?

FHA loans require 580 minimum, conventional loans 620+. For best rates, aim for 740+.

🧮 Enter Loan Details

Home Price ($)

Down Payment ($)

20.0% of home price

Loan Amount ($)

Interest Rate (%)

Loan Term

Property Tax ($/year)

Home Insurance ($/year)

PMI ($/month) — if down payment < 20%

📊 Your Monthly Payment

Estimated Monthly Payment

$2,283

Principal & Interest: $1,816 + Tax: $350 + Insurance: $117

$653,748

Total Payment

$373,748

Total Interest

$280,000

Loan Amount

Oct 2056

Payoff Date

Principal Interest Tax Insurance

💰 Get Actual Mortgage Rates

Compare rates from multiple lenders — free, no obligation

Compare Rates Now →

📋 15-Year vs 30-Year Comparison

Detail	15-Year Loan	30-Year Loan	Difference
Interest Rate	6.25%	6.75%	0.50% lower
Monthly P&I	$2,404	$1,816	$588 more/mo
Total Interest	$152,647	$373,748	Save $221,101!
Total Cost	$432,647	$653,748	Save $221,101!

📅 Amortization Schedule

See how each payment splits between principal and interest over time

Year	Starting Balance	Annual Payment	Principal	Interest	Ending Balance

💡 Mortgage Tips to Save Money

🎯 Put 20% Down

Avoid PMI (Private Mortgage Insurance) which costs $100-$300/month. On a $350K home, 20% down = $70,000. No PMI saves you $1,200-$3,600/year.

📉 Buy Down Your Rate

Paying 1 "point" (1% of loan) upfront reduces your rate by ~0.25%. On a $280K loan, 1 point = $2,800 upfront but saves $50+/month for 30 years = $18,000 total savings.

💳 Boost Your Credit Score

760+ credit score gets the best rates. Each 20-point drop can cost you 0.25% higher rate. On a $280K loan, 0.5% higher rate = $30,000 more interest over 30 years.

🔄 Make Extra Payments

Adding just $200/month extra on a $280K, 30-year loan at 6.75% saves $95,000 in interest and pays off 7 years early. Even 1 extra payment per year helps significantly.

🏪 Compare Multiple Lenders

Rates vary by 0.5-1% between lenders. Always get at least 3-5 quotes. Each 0.25% difference = $15,000+ over the life of the loan. Shopping around takes 1 hour, saves thousands.

📋 Get Pre-Approved First

Pre-approval shows sellers you are serious. It locks in your rate for 60-90 days. You will know exactly how much you can borrow before you start house hunting.

❓ Mortgage FAQ

How much house can I afford?

A common guideline is the 28/36 rule: your monthly housing costs (mortgage + tax + insurance) should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. For example, if you earn $80,000/year ($6,667/month), your maximum housing payment should be around $1,867/month. Use our calculator above to see what home price fits that payment. Also consider maintenance costs (1% of home value per year), utilities, and HOA fees if applicable.

What credit score do I need for a mortgage?

Minimum scores: FHA loans require 580 (3.5% down) or 500 (10% down). Conventional loans typically require 620+. For the best rates, aim for 740+. Each 20-point increase above 680 can reduce your rate by 0.125-0.25%, saving thousands over the loan term. Check your score free at annualcreditreport.com before applying.

What is PMI and how do I avoid it?

PMI (Private Mortgage Insurance) is required when your down payment is less than 20% on a conventional loan. It costs 0.5-1% of the loan amount per year ($1,400-$2,800/year on a $280K loan). To avoid PMI: put 20% down, choose a VA loan (0% down, no PMI for veterans), or use a piggyback loan (80/10/10). PMI automatically cancels when you reach 22% equity.

Fixed-rate vs adjustable-rate mortgage (ARM)?

Fixed-rate: same payment for the entire loan term. Predictable and safe. Best if you plan to stay 7+ years or rates are low. Adjustable-rate (ARM): lower initial rate for 5/7/10 years, then adjusts annually. 5/1 ARM might start at 5.5% vs 6.75% fixed. Best if you plan to sell or refinance within 5-7 years. Risk: if rates rise, your payment increases significantly after the initial period.

Should I pay off my mortgage early?

It depends on your rate. If your mortgage rate is below 5%, you may earn more by investing extra money in the stock market (8-10% historical return). If your rate is above 6%, paying extra toward your mortgage is a guaranteed return equal to your interest rate. A balanced approach: make extra payments while also maxing out your 401(k) and Roth IRA. The psychological benefit of being debt-free is also valuable.

How much should I save for closing costs?

Closing costs typically run 2-5% of the loan amount. On a $280,000 loan, expect $5,600-$14,000. This includes appraisal ($300-$600), home inspection ($300-$500), title insurance ($500-$2,000), origination fees (0.5-1% of loan), attorney fees, and recording fees. Some sellers may agree to pay part of your closing costs — always negotiate.

How to Use This Mortgage Calculator

Our free mortgage calculator helps you estimate your monthly mortgage payment based on the home price, down payment, interest rate, and loan term. Enter your numbers above and click "Calculate Payment" to see your estimated monthly payment, total interest paid, and a complete amortization schedule showing how your loan balance decreases over time.

Understanding Your Monthly Mortgage Payment

Your monthly mortgage payment consists of four components, often called PITI: Principal (paying down the loan balance), Interest (the cost of borrowing), Taxes (property taxes collected by your local government), and Insurance (homeowner insurance protecting your property). On a $280,000 loan at 6.75% for 30 years, approximately 70% of your early payments go toward interest, with that ratio gradually shifting toward principal over time.

How Interest Rates Affect Your Payment

Even small changes in interest rates have a massive impact on your total cost. On a $280,000, 30-year loan: at 6.00% your monthly P&I is $1,679 (total interest: $324,300). At 6.75% it jumps to $1,816 (total interest: $373,748). At 7.50% it reaches $1,958 (total interest: $424,900). That 1.5% rate difference costs you over $100,000 in additional interest over the life of the loan. This is why shopping for the best rate is one of the most important financial decisions you will make.

First-Time Home Buyer Tips

Get pre-approved before house hunting — Know your budget and show sellers you are a serious buyer
Save 20% down payment if possible — Avoids PMI and gets better rates. If 20% is not feasible, FHA loans allow 3.5% down
Budget for all costs — Mortgage payment + property tax + insurance + maintenance (1%/year) + utilities + HOA. The true cost of homeownership is 30-40% more than the mortgage alone
Do not skip the home inspection — $400 spent on inspection can save $40,000 in hidden repairs. Never waive inspection to "win" a bidding war
Lock your rate — Once you find a good rate, lock it for 30-60 days while closing. Rates can change daily

Current Mortgage Rate Environment

Mortgage rates fluctuate based on Federal Reserve policy, inflation, and bond markets. As of 2026, rates have been in the 6-7.5% range for 30-year fixed mortgages and 5.5-6.5% for 15-year fixed mortgages. Adjustable-rate mortgages (ARMs) typically start 0.5-1% lower than fixed rates. To get the most current rates for your specific situation and credit profile, compare offers from multiple lenders using our rate comparison tool.

🏠 Ready to Buy Your Home?

Compare mortgage rates from top lenders — free, takes 2 minutes

Get Free Mortgage Quotes →

🏠 Mortgage Calculator