| Component | Monthly | Total Over Term |
|---|---|---|
| Principal & Interest | $2,009.59 | $723,451.52 |
| Property Tax | $400.00 | $144,000.00 |
| Home Insurance | $125.00 | $45,000.00 |
| Total Monthly Out-of-Pocket | $2,534.59 | $912,451.52 |
| Year | Interest Paid | Principal Paid | Ending Balance |
|---|---|---|---|
| 1 | $20,496 | $3,619 | $316,381 |
| 2 | $20,256 | $3,859 | $312,522 |
| 3 | $20,000 | $4,115 | $308,407 |
The Mortgage Calculator helps estimate the monthly payment due along with other financial costs associated with mortgages. The calculator is mainly intended for use by home buyers, investors, and homeowners looking to budget their future real estate investments accurately.
A mortgage is a loan secured by property, usually real estate property. Lenders define it as the money borrowed to pay for real estate. In essence, the lender helps the buyer pay the seller of a house, and the buyer agrees to repay the money borrowed over a period of time, usually 15 or 30 years in the U.S. Each month, a payment is made from buyer to lender. A portion of the monthly payment is called the principal, which is the original amount borrowed. The other portion is the interest, which is the cost paid to the lender for using the money.
Our tool utilizes the standard fixed-rate mortgage payment calculation formula:
Property taxes—a tax that property owners pay to governing authorities. On average, Americans pay about 1.1% of their property's value as property tax each year.
Home insurance—an insurance policy that protects the owner from accidents that may happen to their real estate properties. The cost varies according to location and condition.
Private mortgage insurance (PMI)—protects the mortgage lender if the borrower is unable to repay the loan. This is normally required if the down payment is less than 20%.
Your monthly payment is primarily determined by the home purchase price, down payment, loan interest rate, loan term (15 or 30 years), annual property tax, and home insurance.
You can lower your monthly mortgage payment by making a larger down payment, securing a lower interest rate, or extending your loan term length.
An amortization schedule provides an annual breakdown of your payments showing how much goes toward paying down the principal balance versus total interest paid over the life of the loan.