Mortgage Calculator

How to Calculate Your Mortgage Payment

To calculate your monthly mortgage payment you need the home price, down payment percentage, annual interest rate, and loan term in years. The formula uses the French amortization system, where the principal and interest payment remains fixed for the entire term. This calculator also includes property tax and homeowners insurance to show your full PITI payment.

How Much Down Payment Do I Need?

Conventional loans typically require 5% to 20% down. FHA loans may accept as little as 3.5%. A larger down payment reduces your monthly payment and total interest. You should also budget for closing costs, which typically range from 2% to 5% of the purchase price.

Frequently Asked Questions

What is the average mortgage interest rate in the US?

Mortgage rates fluctuate based on the economy, the Federal Reserve, and your credit profile. Historically, 30-year fixed rates have averaged around 6% to 7%, but they can vary significantly. Comparing quotes from multiple lenders can save you thousands over the life of the loan.

What loan term should I choose?

The most common terms are 15 and 30 years. A 15-year mortgage has higher monthly payments but significantly less total interest. A 30-year mortgage lowers your monthly payment but costs more over the life of the loan.