Mortgage Calculators
Our mortgage calculators help you make informed decisions about home buying, refinancing, and understanding your monthly payments. Whether you're a first-time homebuyer or looking to refinance, these free tools provide accurate calculations to guide your mortgage decisions.
Featured Mortgage Calculators
Mortgage Payment Calculator
Calculate your monthly mortgage payments based on loan amount, interest rate, and loan term.
Use CalculatorMortgage Affordability Calculator
Determine how much house you can afford based on your income, expenses, and down payment.
Use CalculatorRefinance Calculator
See if refinancing your mortgage makes financial sense by comparing your current and potential new loan.
Use CalculatorAmortization Calculator
View a complete amortization schedule showing principal and interest payments over the life of your loan.
Use CalculatorAll Mortgage Calculators
Mortgage Payment Calculator
Calculate your monthly mortgage payments based on loan amount, interest rate, and loan term.
Use CalculatorMortgage Affordability Calculator
Determine how much house you can afford based on your income, expenses, and down payment.
Use CalculatorRefinance Calculator
See if refinancing your mortgage makes financial sense by comparing your current and potential new loan.
Use CalculatorAmortization Calculator
View a complete amortization schedule showing principal and interest payments over the life of your loan.
Use CalculatorExtra Payment Calculator
See how making extra payments can reduce your loan term and save on interest.
Use CalculatorDown Payment Calculator
Calculate how much down payment you need for a home purchase and how it affects your mortgage.
Use CalculatorMortgage Comparison Calculator
Compare different mortgage options side by side to find the best loan for your needs.
Use CalculatorMortgage Points Calculator
Determine if paying points to lower your interest rate is worth the upfront cost.
Use CalculatorUnderstanding Mortgages
A mortgage is a loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property serves as collateral to secure the loan.
Types of Mortgages
There are several types of mortgages available to homebuyers:
- Fixed-Rate Mortgages: The interest rate remains the same for the entire term of the loan, typically 15, 20, or 30 years.
- Adjustable-Rate Mortgages (ARMs): The interest rate is fixed for an initial period, then adjusts periodically based on market indices.
- FHA Loans: Insured by the Federal Housing Administration, these loans are designed for low-to-moderate income borrowers who can't make a large down payment.
- VA Loans: Guaranteed by the Department of Veterans Affairs, these loans are available to service members, veterans, and eligible surviving spouses.
- USDA Loans: Guaranteed by the U.S. Department of Agriculture, these loans help low-to-moderate income borrowers buy homes in rural areas.
Key Mortgage Terms
Understanding these key terms will help you navigate the mortgage process:
- Principal: The original amount of the loan.
- Interest: The cost of borrowing money, expressed as a percentage rate.
- Down Payment: The initial upfront payment made when purchasing a home.
- Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the appraised value of the property.
- Private Mortgage Insurance (PMI): Insurance that protects the lender if you default on your loan, typically required if your down payment is less than 20%.
- Escrow: An account where funds are held for property taxes and insurance premiums.
- Closing Costs: Fees and expenses paid at the closing of a real estate transaction.
Using Mortgage Calculators Effectively
To get the most accurate results from our mortgage calculators:
- Gather accurate information about your loan amount, interest rate, and term
- Include all costs such as property taxes, insurance, and HOA fees
- Consider different scenarios with varying down payments and loan terms
- Use the amortization calculator to understand how payments are applied over time
- Explore how extra payments can reduce your loan term and interest costs
Frequently Asked Questions
How is a monthly mortgage payment calculated?
A monthly mortgage payment typically consists of four components, often referred to as PITI: Principal (the original loan amount), Interest (the cost of borrowing), Taxes (property taxes), and Insurance (homeowners insurance and possibly PMI). The principal and interest portion is calculated using an amortization formula that ensures equal payments over the life of the loan while gradually shifting from mostly interest to mostly principal.
What is a good interest rate for a mortgage?
Mortgage interest rates fluctuate based on economic conditions, your credit score, down payment amount, loan term, and loan type. A "good" rate is typically at or below the national average for your loan type. To determine if you're getting a competitive rate, compare offers from multiple lenders and check current average rates published by sources like Freddie Mac or Bankrate.
How much house can I afford?
Financial experts typically recommend that your monthly housing costs (including mortgage payment, property taxes, insurance, and HOA fees) should not exceed 28% of your gross monthly income. Additionally, your total debt payments (including housing costs, car loans, student loans, and credit cards) should not exceed 36% of your gross monthly income. Our Mortgage Affordability Calculator can help you determine a specific price range based on your financial situation.
Is it worth paying points to lower my interest rate?
Mortgage points are fees paid directly to the lender at closing in exchange for a reduced interest rate. Whether points are worth it depends on how long you plan to stay in the home. Generally, the longer you plan to keep the mortgage, the more beneficial points become. Our Mortgage Points Calculator can help you determine the break-even point where the interest savings exceed the upfront cost of the points.
How can I pay off my mortgage faster?
There are several strategies to pay off your mortgage faster: make biweekly payments instead of monthly (resulting in 13 full payments per year instead of 12), make extra payments toward the principal, refinance to a shorter loan term, or round up your payments. Even small additional amounts applied to the principal can significantly reduce your loan term and save thousands in interest. Our Extra Payment Calculator can show you the impact of these strategies.