Mortgage Calculator

Private Mortgage Insurance (PMI) is an extra monthly cost lenders require when your down payment is less than 20% of the home price. It protects the lender, not you, and typically drops off automatically once you reach 20-22% equity in your home.

A common guideline is keeping your total housing payment (principal, interest, taxes and insurance) under 28% of your gross monthly income, and total debt payments under 36%. Use the calculator above with different home prices and down payments to see what fits your budget.

A 15-year mortgage has a higher monthly payment but a lower interest rate and far less total interest paid over the life of the loan. A 30-year mortgage offers lower, more manageable monthly payments but costs significantly more in interest overall. Compare both terms above to see the real dollar difference.

Property tax rates are set locally and fund schools, roads and municipal services, so they differ widely — states like New Jersey and Illinois have some of the highest effective rates, while states like Hawaii and Alabama have among the lowest. Select your state above to apply a realistic estimate to your payment.

A fixed-rate mortgage locks in the same interest rate for the entire loan term, so your principal and interest payment never changes. An adjustable-rate mortgage (ARM) usually starts with a lower rate for a few years, then adjusts periodically based on market conditions, which can raise or lower your payment later.

Refinancing can lower your monthly payment or total interest if current rates are meaningfully below your existing rate, but you need to weigh closing costs against the savings and how long you plan to stay in the home. A common rule of thumb is that refinancing pays off if you'll stay long enough to recoup the closing costs through lower payments.

Closing costs are one-time fees paid at the end of a home purchase, typically 2-5% of the loan amount, covering things like appraisal, title insurance, and loan origination fees. This calculator focuses on your ongoing monthly payment and does not include one-time closing costs, so budget for them separately when planning your down payment.

A larger down payment reduces the amount you finance, which lowers both your principal and interest payment and can eliminate PMI entirely once you hit 20%. Even increasing your down payment by 5-10% of the home price can meaningfully reduce your total interest paid over the loan term.