How to Use This Mortgage Calculator
Our mortgage calculator is designed to give you a clear picture of your monthly housing costs. Simply enter the home price, your planned down payment, the current interest rate, and the loan term.
Understanding the Components (PITI)
Most mortgages include four key parts, known as PITI:
- Principal: The money that goes towards paying off the loan balance.
- Interest: The cost of borrowing money from the lender.
- Taxes: Property taxes paid to your local government.
- Insurance: Homeowners insurance to protect the property.
Impact of Loan Term
Choosing a 15-year mortgage significantly increases your monthly payment but saves you tens of thousands of dollars in interest over the life of the loan compared to a 30-year term.
What about PMI?
If you put down less than 20%, lenders typically require Private Mortgage Insurance (PMI). This protects the lender if you default. Our calculator automatically estimates this cost for you.