Our mortgage calculator provides instant estimates of your monthly payments based on loan amount, interest rate, and term. Follow these steps:

1. Enter the home price: Start by entering the total price of the home you’re planning to buy. This is the foundation for calculating your loan amount.
2. Input your down payment: Add the amount you plan to put down upfront. You can enter this as a dollar amount or a percentage of the home price. A larger down payment reduces your loan size and monthly payments.
3. Choose your loan term: Select the length of your mortgage — typically 15, 20, or 30 years. Shorter terms result in higher monthly payments but lower overall interest paid.
4. Enter your interest rate: Input your estimated mortgage interest rate. This will determine how much interest you’ll pay each month and over the life of the loan.

Your monthly mortgage payment is more than just loan repayment—it's a bundle of housing costs. Here's the complete PITI breakdown (Principal, Interest, Taxes, Insurance):

Pro Tip: Lenders often require you to escrow taxes and insurance, so your monthly payment may be higher than just principal + interest. Always budget for the full PITI amount.

A mortgage calculator eliminates guesswork from homebuying. Here's why it's essential whether you're a first-time buyer or refinancing:

• Estimate your monthly payment with confidenceGet a quick snapshot of what you can expect to pay each month based on current interest rates, your loan amount, and down payment. This helps you plan your budget before committing to a property or lender.
• Compare multiple loan scenariosTest different combinations of home prices, down payments, loan terms, and interest rates. See how a 15-year mortgage compares to a 30-year option or how a slightly higher down payment can lower your monthly costs.
• Understand the total cost of the loanMortgage calculators break down your monthly payment into principal, interest, taxes, insurance, and other costs. This full-picture view ensures there are no surprises when it comes to affordability.
• Localize your estimate using ZIP codeBy entering your ZIP code, you can get more accurate estimates that reflect local property tax rates and insurance costs. This is especially helpful if you’re comparing homes in different cities or states.
• Plan ahead for long-term affordabilityUse the calculator to project how your payments will change over time. This is particularly useful for budgeting future expenses, savings goals, and long-term homeownership plans.

Determining your homebuying budget involves more than just mortgage payments. Follow this 5-step affordability framework:

1. Start with your income: Your gross monthly income (before taxes) is the foundation of your affordability estimate. Most lenders recommend that your total monthly housing expenses not exceed 28% to 31% of your gross income.
2. Factor in your monthly debts: Your debt-to-income (DTI) ratio plays a big role in how much you can borrow. This includes car loans, student loans, credit cards, and any other recurring obligations. Most lenders look for a DTI below 43%, including your future mortgage payment.
3. Consider your down payment: A larger down payment reduces your loan amount and monthly payments. It may also help you avoid private mortgage insurance (PMI), improving affordability.
4. Include property taxes, insurance, and fees: Beyond the loan itself, homeownership comes with recurring costs like property taxes, homeowners insurance, and HOA fees (if applicable). A true affordability estimate should include all of these.
5. Don’t forget your lifestyle and savings goals: Just because a lender approves you for a certain amount doesn't mean it's right for your situation. Consider your other financial goals, like retirement, travel, or emergency savings, to determine a comfortable monthly payment.

Strategic adjustments can significantly reduce your monthly housing costs. Here are the most effective methods:

• 1
  Increase your down payment

  The more you put down upfront, the less you need to borrow. A larger down payment reduces your loan amount, which directly lowers your monthly principal and interest payments. It may also help you avoid private mortgage insurance (PMI).

• 2
  Choose a longer loan term

  Opting for a 30-year mortgage instead of a 15- or 20-year term spreads your payments over a longer period, reducing the amount you owe each month. Just keep in mind you’ll pay more interest over time.

• 3
  Shop around for a lower interest rate

  Interest rates can vary widely between lenders. Even a small rate reduction—like going from 7% to 6.5%—can cut your monthly payment by hundreds of dollars. Compare offers or work with a mortgage broker to find the best deal.

• 4
  Improve your credit score

  A higher credit score qualifies you for better interest rates. Paying down debts, avoiding new credit inquiries, and keeping utilization low can all boost your score before applying for a loan.

• 5
  Consider buying mortgage points

  Mortgage points are upfront fees you pay to reduce your interest rate. If you plan to stay in your home for many years, this can be a cost-effective way to lower your monthly payments.

• 6
  Refinance your mortgage

  Already own a home? Refinancing to a lower interest rate or longer loan term can lower your monthly payments. Just be sure to factor in closing costs and how long it’ll take to break even.

• 7
  Eliminate PMI (Private Mortgage Insurance)

  If your loan includes PMI, you may be able to remove it once you reach 20% equity in your home. This can lower your payment by $100 or more per month, depending on your loan size.

• 8
  Lower your property taxes or insurance

  Check if your home has been over-assessed and file an appeal to reduce property taxes. You can also shop around for more affordable homeowners insurance to decrease escrow-related costs.