Mortgage Calculator
Estimate your monthly mortgage payment with taxes and insurance.
Payment Summary
Your Estimated Monthly Payment
$0.00
Principal & Interest
$0.00
Property Taxes
$0.00
Home Insurance
$0.00
Loan Amount
$0
Amortization Schedule
| # | Date | Principal | Interest | Total Payment | Balance |
|---|
Frequently Asked Questions
What is a mortgage?
A mortgage is a loan from a bank or financial institution that helps a person purchase a home. The property itself serves as collateral for the loan, meaning the lender can take possession of the property if the borrower fails to make payments.
What is a down payment?
A down payment is the initial, upfront portion of a property's total cost that the buyer pays in cash. It is not part of the mortgage loan. A larger down payment can often result in a lower interest rate and a smaller monthly payment.
What does a mortgage calculator estimate?
A mortgage calculator estimates your total monthly house payment, which typically includes PITI: principal, interest, property taxes, and homeowner's insurance. This gives you a more realistic picture of your housing costs than just looking at the principal and interest alone.
How is the principal and interest payment calculated?
The principal and interest (P&I) portion of your payment is calculated using a formula based on the loan amount, the interest rate, and the length (term) of the loan. In the beginning of the loan, a larger portion of your payment goes toward interest. Over time, more of it goes toward paying down the principal balance.
Why are property taxes and insurance included in the monthly payment?
Many lenders require borrowers to pay a portion of their annual property taxes and homeowner's insurance premiums each month. The lender holds these funds in an escrow account and pays the bills on your behalf when they are due. This calculator includes these costs to provide a more accurate estimate of your total monthly housing expense.
What is an amortization schedule?
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and interest that comprise each payment until the loan is paid off. Our calculator generates this schedule for you so you can see how your loan balance decreases over time.