Mortgage Calculator
Calculate your monthly mortgage payment, view the complete amortization schedule, and understand exactly how much you'll pay over the life of your loan.
Pair this with our Home Affordability Calculator to see how much house you can really afford.
Total Loan Amount: $280,000
Scroll down to get your amortization schedule
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How to Use This Mortgage Calculator
Our mortgage calculator helps you understand the true cost of homeownership. Here's how to get the most accurate estimate:
- Enter your home price – The total purchase price of the property you're considering.
- Set your down payment – Most conventional loans require 3-20% down. FHA loans allow as little as 3.5%.
- Input the interest rate – Check current rates from multiple lenders. Your credit score significantly affects your rate.
- Choose your loan term – 30-year loans have lower payments; 15-year loans save on interest.
Key Factors That Affect Your Mortgage Payment
Credit Score Impact
A 100-point difference in credit score can mean 0.5-1% difference in interest rate. On a $400,000 loan, that's $200-400 extra per month.
Down Payment Power
Putting 20% down eliminates PMI instantly. Even 5% down gets you into a home, though you'll pay mortgage insurance until you reach 20% equity.
The 28/36 Rule Explained
Lenders use two ratios to approve loans. If you earn $100k/year ($8,333/mo):
- Front-End Ratio (28%): Max housing payment = $2,333/mo
- Back-End Ratio (36%): Max total debt (housing + cars + cards) = $3,000/mo
Understanding PMI Costs
Private Mortgage Insurance typically costs 0.5% - 1.5% of the loan annually. On a $400k loan, that's $166-$500/mo extra. It automatically drops off when you reach 22% equity (78% LTV) on conventional loans.
Loan Term Length
A 15-year mortgage typically has rates 0.5-0.75% lower than 30-year loans and saves tens of thousands in interest, but payments are ~50% higher.
Property Taxes & Insurance
Don't forget escrow costs. Property taxes vary wildly by state—Texas has no income tax but high property taxes. This is usually bundled into your monthly payment.
Understanding Your Amortization Schedule
The amortization schedule reveals a critical truth about mortgages: in the early years, most of your payment goes toward interest, not principal. This is why building equity takes time.
For example, on a $400,000 loan at 7% for 30 years:
- Month 1: $2,333 of your $2,661 payment goes to interest (88%)
- Year 10: Interest drops to about 70% of each payment
- Year 20: You finally pay more principal than interest each month
Making extra principal payments early in the loan has the biggest impact on total interest saved.
Frequently Asked Questions
How much house can I afford on my salary?
Most lenders recommend the 28/36 rule: spend no more than 28% of gross income on housing and no more than 36% on total debt. For a $100,000 salary, this suggests a maximum monthly payment of ~$2,333. Use our Home Affordability Calculator for a personalized estimate.
What is a good mortgage interest rate in 2026?
In early 2026, 30-year fixed rates range from 6.0% to 7.5% depending on credit score and lender. Excellent credit (740+) qualifies for the best rates. ARM loans may offer lower initial rates but carry more risk.
Should I choose a 15-year or 30-year mortgage?
Choose 15-year if: You can afford higher payments and want to save significantly on interest (often $100,000+ in savings).
Choose 30-year if: You want lower monthly obligations, more financial flexibility, or plan to invest the difference.
How much will I save with extra mortgage payments?
Paying just $200 extra per month on a $400,000, 30-year mortgage at 7% saves about $95,000 in interest and pays off the loan 5 years early. The earlier you start making extra payments, the more you save.