Mortgage Calculator

Mortgage Calculator: Get the Full Picture of Your Monthly Payment

Most mortgage calculators only give you principal and interest. Ours gives you everything, including property taxes, insurance, PMI, and affordability metrics, so you’re not left guessing.

Whether you're exploring FHA, VA, USDA, or a conventional loan, our calculator helps you estimate real-world costs with precision.

What Your Monthly Mortgage Estimate Includes

We go beyond the basics. Here’s what your monthly payment estimate covers:

• Principal & Interest: The main loan payment plus interest
• Property Taxes: Local tax estimate based on price or input
• Homeowners Insurance: Monthly breakdown of your annual premium
• Private Mortgage Insurance (PMI): Required for down payments under 20%
• HOA Fees: Optional input to reflect association dues
• County-Specific Loan Limits: Auto-applied to keep estimates realistic
• Housing Ratio & DTI: Built-in affordability tracking so you can see how lenders view your application

A Mortgage Calculator With Built-in Affordability Tools

Our calculator doesn’t just show your payment; it helps you decide if you can afford it:

• Housing Expense Ratio: % of income spent on your mortgage
• Debt-to-Income Ratio (DTI): Considers all monthly debts
• Income Comparison: Monthly income vs. total monthly housing cost

Types of Home Loans to Consider

Choosing the right loan type can affect your payment, approval chances, and even how much house you can afford. Here's a quick overview:

Conventional Loan

• Best for: Buyers with good credit and stable income
• Down payment: As low as 3% (PMI applies under 20%)
• Loan limits apply

FHA Loan

• Best for: First-time buyers or those with lower credit
• Down payment: Minimum 3.5%
• Requires upfront and monthly mortgage insurance

VA Loan

• Best for: Active-duty military, veterans, and eligible spouses
• Down payment: 0% (no PMI)
• Backed by the Department of Veterans Affairs

USDA Loan

• Best for: Rural and suburban buyers with moderate income
• Down payment: 0%
• Location and income limits apply

Understanding which loan fits your situation can help you optimize your finances and avoid surprises later in the process.

Deciding How Much House You Can Afford

Before falling in love with a home, it's essential to know what fits comfortably within your budget. Lenders consider your income, debt, credit score, and down payment when calculating affordability, but ultimately, you decide what feels manageable.

Here’s how to get a clearer picture:

• Use the 28/36 Rule: Keep your mortgage payment under 28% of your gross income and total monthly debt under 36%.
• Factor in More Than the Mortgage: Include property taxes, insurance, utilities, maintenance, and potential HOA fees in your budget.
• Leave Room for Life: Make sure you have enough cash flow for savings, emergencies, and personal expenses.
• Test-Drive the Payment: Try living with your estimated payment for a few months by saving the difference. It’s a smart way to prepare.
• Think Long-Term: Don’t just budget for now; plan for future changes like career moves, family growth, or rising expenses.

If you're unsure, our calculator's built-in housing ratio and DTI tools help you gauge affordability in real time, so you're not overextending yourself.

Tips for Lowering Your Monthly Mortgage Payment

A lower monthly payment can free up cash for savings, investments, or everyday expenses. Here are smart ways to reduce your mortgage burden:

• Increase Your Down Payment: A larger down payment reduces your loan amount, which lowers your monthly cost, and can eliminate PMI.
• Shop Around for the Best Interest Rate: Even a 0.25% difference in rates can save you thousands over time.
• Extend Your Loan Term: A 30-year mortgage offers lower monthly payments than a 15-year term (though you’ll pay more in interest)
• Pay Points at Closing: Buying mortgage points can lower your interest rate, especially if you plan to stay in the home long-term.
• Refinance Your Mortgage: If rates have dropped since you bought your home, refinancing may significantly reduce your payment.
• Eliminate PMI Early: Once you’ve built 20% equity in your home, request cancellation of private mortgage insurance.
• Appeal Property Taxes: If your home is over-assessed, challenging your tax bill could reduce your escrow portion.

Making small changes now can lead to big savings over time. Our calculator helps you see how each adjustment affects your bottom line in real time.

Why Use Our Mortgage Calculator?

• Helps you plan with realistic, detailed monthly estimates
• Adjusts for your credit score, down payment, and local taxes
• Gives you a quick view of loan limits and affordability ratios
• Saves time by offering a PDF summary you can send to your lender or keep for reference
• And much more.

Frequently Asked Questions About Mortgages

1. What is included in a mortgage payment?

Your monthly mortgage payment typically includes principal, interest, property taxes, homeowners insurance, and possibly PMI or HOA dues.

2. How much mortgage can I afford?

A good rule of thumb is to keep your housing expense below 28% of your gross income and your total debt-to-income ratio under 43%.

3. What credit score do I need for a mortgage?

Most lenders require a minimum credit score of 620 for conventional loans and 580 for FHA loans. Higher scores often mean better rates.

4. Do I need a 20% down payment?

No. Many loans allow for much less, FHA starts at 3.5%, conventional as low as 3%, and VA or USDA loans offer 0% down options.

5. Can I remove PMI later?

Yes. Once you reach 20% equity in your home, you can typically request to cancel PMI on a conventional loan.

6. What is the difference between pre-qualified and pre-approved?

Pre-qualification is an estimate. Pre-approval involves a full credit check and documentation review, making it stronger when house hunting.

7. How accurate is this mortgage calculator?

We use real-time rate averages and allow full customization. It’s designed to give you a realistic estimate based on your specific situation.

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Want to dive deeper into mortgage insights? Check out these helpful reads from our blog:

Top 3 Most Common Mortgage Loans: Which One Is Best?
Learn the pros and cons of fixed-rate, adjustable-rate, and government-backed home loans.

Mortgage Rate Predictions for 2025
Wondering where mortgage rates are headed this year? Get our expert take.

How to Lower Your Mortgage Payment in 2025
Explore smart strategies to reduce your monthly housing costs and save over the life of your loan.