Calculate your monthly mortgage payments, total interest costs, and view detailed amortization schedules. Compare different loan options to make informed home financing decisions.
A 1% difference in interest rate on a $300,000 loan can save over $60,000 in interest over 30 years.
Shorter loan terms save significant interest but increase monthly payments. Choose based on your budget.
20% down eliminates PMI and gets better rates. Consider these down payment options:
Mortgage payments consist of four main components:
Interest rate remains constant for entire loan term. Predictable payments.
Fixed rate for initial period, then adjusts periodically based on market.
Government-backed loan with low down payment (3.5%) requirements.
Amortization is the process of paying off a debt over time through regular payments. With each payment:
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It protects the lender if you default. PMI typically costs 0.5% to 1% of the loan amount annually and can be removed once you reach 20% equity.
15-year loans have higher monthly payments but lower interest rates and save thousands in interest. 30-year loans have lower payments, providing more budget flexibility. Consider your financial goals and ability to handle higher payments.
Most lenders recommend spending no more than 28% of your gross monthly income on housing costs. The 28/36 rule suggests 28% for housing, 36% for total debt. Use our calculator to find payments within your budget.
Closing costs typically range from 2-5% of the home price and include loan origination fees, appraisal fees, title insurance, escrow payments, recording fees, and prepaid interest. Always budget for closing costs separately from your down payment.
