CalculynHow it works
Your monthly mortgage payment is made of principal and interest on the loan, plus property tax, homeowner's insurance, and sometimes HOA dues and private mortgage insurance (PMI) when you put down less than 20%.
Formula
M = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1) P = loan amount, r = monthly rate, n = number of payments
Example
A $400,000 home with $80,000 down at 6.5% for 30 years has a $320,000 loan and about $2,023 per month in principal and interest.
Assumptions & limitations
- Fixed interest rate for the full term.
- Excludes closing costs, points and rate changes.
- Property tax and insurance are treated as steady yearly amounts.
Frequently asked questions
What is PMI?
Private mortgage insurance protects the lender when your down payment is under 20%. It usually costs 0.3%–1.5% of the loan per year.
Should I choose a 15 or 30 year loan?
A 15-year loan has higher payments but saves a large amount of interest. A 30-year loan keeps monthly payments lower and more flexible.
Does this include closing costs?
No. Closing costs are typically 2%–5% of the loan and are paid upfront.