Mortgage Calculator

Your down payment directly impacts both your monthly payment and total interest paid. A larger down payment means borrowing less, which reduces your monthly obligation and the total interest over the loan's life. Putting down at least 20% also eliminates the need for Private Mortgage Insurance (PMI), which typically costs 0.5-1% of the loan amount annually. On a $400,000 home, that is $2,000-$4,000 per year in avoided PMI costs. However, depleting your savings entirely for a larger down payment can leave you vulnerable to unexpected expenses, so balance is key.

The choice between a 15-year and 30-year mortgage is one of the biggest financial decisions homebuyers face. A 15-year mortgage typically comes with a lower interest rate and saves a substantial amount in total interest, but monthly payments are significantly higher. For example, on a $320,000 loan at 6.5%, a 30-year term costs about $2,023 per month while a 15-year term costs about $2,789 — roughly $766 more each month. However, you would save over $200,000 in total interest with the shorter term. Choose based on what your monthly budget can comfortably handle.

Your actual monthly housing cost goes beyond the principal and interest shown here. Property taxes vary widely by location, ranging from 0.3% to over 2% of your home's value annually. Homeowner's insurance typically runs $1,000-$3,000 per year. If your down payment is under 20%, PMI adds another cost. HOA fees apply to condos and planned communities. Maintenance costs are generally estimated at 1% of the home's value per year. When budgeting for a home purchase, add these expenses to the mortgage payment this calculator shows to get a realistic picture of total monthly housing costs. For auto loans, student loans, and other borrowing, our Loan EMI Calculator provides a similar amortization breakdown. You can also explore how your savings grow over time with our Compound Interest Calculator.