Mortgage Calculator

Your monthly mortgage payment consists of principal (the loan amount you're paying back), interest (the cost of borrowing), property taxes, and homeowner's insurance — often called PITI. Understanding each component helps you budget accurately and avoid surprises after closing.

A 15-year mortgage has higher monthly payments but saves you tens of thousands in interest compared to a 30-year loan. For a $280,000 loan at 6.5%, switching from 30 to 15 years saves over $200,000 in total interest — though your monthly payment increases by roughly $700.

Your down payment directly affects your monthly payment and whether you'll need private mortgage insurance (PMI). Putting down 20% or more eliminates PMI, which can save $100-300/month on a typical home.

As of April 2026, the average 30-year fixed mortgage rate is approximately 5.8%, down from the 7%+ peaks of 2023-2024. Rates are driven primarily by the 10-year Treasury yield and the Federal Reserve's monetary policy. If the Fed cuts rates in the second half of 2026, mortgage rates could fall toward 5.5% or lower.

Your individual rate depends on your credit score, down payment, loan type, and lender. Borrowers with 760+ credit scores typically get rates 0.5-1% lower than those with 680 scores. Shopping multiple lenders can save you 0.25-0.5% — which on a $300,000 loan translates to $25,000-$50,000 in interest savings over the life of the loan.

The standard guideline is the 28/36 rule: your mortgage payment (PITI) should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. So if you earn $8,000/month gross, your maximum mortgage payment is $2,240 and your total debt payments (including car loans, student loans, credit cards) should stay under $2,880.

Use this calculator to work backwards: enter different home prices until the monthly payment fits within your 28% threshold. Remember to include property taxes and insurance — they can add $300-$600/month depending on your location.

Making extra principal payments can dramatically reduce your total interest and payoff timeline. Adding just $200/month to a $300,000 mortgage at 6% can save over $60,000 in interest and pay off the loan 6 years early. However, if your mortgage rate is below 5%, you may earn more by investing the extra money in index funds (which historically return 10%/year).