Use our free Mortgage Calculator to estimate your monthly home loan payments. Calculate principal, interest, taxes, and insurance (PITI) to plan your home buying budget with confidence.
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Buying a home is likely the most significant financial decision you will ever make. Our Mortgage Calculator is designed to take the guesswork out of the process. By providing a clear breakdown of your monthly obligations, you can determine exactly how much house you can afford before you even step foot in an open house.
A mortgage is more than just the principal loan amount. It involves interest rates that fluctuate with the market, property taxes that vary by location, and insurance premiums. Using a home loan calculator allows you to experiment with different scenarios. For instance, you can see how a slightly higher down payment or a shorter loan term affects your long-term interest savings.
Calculating your down payment is a critical first step, much like how you would calculate a percentage of a number to determine your savings goals. Our tool integrates these variables to give you a comprehensive "PITI" (Principal, Interest, Taxes, and Insurance) estimate.
The result provided is an estimate of your monthly payment. It's important to remember that lenders may also require Private Mortgage Insurance (PMI) if your down payment is less than 20%. Additionally, Homeowners Association (HOA) fees are common in many neighborhoods and should be added to your personal budget separately.
A 30-year mortgage offers lower monthly payments because the debt is spread over a longer period. However, a 15-year mortgage usually has a lower interest rate and allows you to pay off the home faster, saving you tens of thousands of dollars in interest over the life of the loan.
PITI stands for Principal, Interest, Taxes, and Insurance. These are the four main components of a monthly mortgage payment. Principal and interest go toward the loan, while taxes and insurance are often held in an escrow account by your lender to pay your local government and insurance provider.
No, this basic calculator does not automatically calculate Private Mortgage Insurance (PMI). PMI is typically required if your down payment is less than 20% of the home's purchase price. You should consult with a lender to see how PMI might increase your monthly total.