Mortgage Calculator

A mortgage payment is rarely just the loan. Lenders escrow property taxes and homeowners insurance alongside principal and interest, and if the property sits in an association there is an HOA fee on top. Budgeting from a principal-and-interest quote alone is the most common way buyers end up stretched, which is why this calculator shows the combined number first.

The loan portion itself uses the same amortization mathematics as any instalment loan: interest accrues monthly on the outstanding balance and the remainder of the payment retires principal. Over a thirty-year term that ordering matters enormously. In the first decade the balance barely moves; in the final decade it collapses. The yearly table above quantifies that curve so you can see how much equity you would actually hold if you sold early.

Down payment size does two things at once: it reduces the amount borrowed and, once you pass roughly twenty percent, it typically removes private mortgage insurance. Rate matters too — a single percentage point on a large balance can be worth six figures across the full term. Adjust the rate and down payment sliders together to see which lever moves your situation more.

Lenders typically cap borrowing at a debt-to-income ratio, so paying off other loans can matter as much as a bigger down payment. Points and buydowns trade upfront cash for a lower rate — worth it only if you keep the loan long enough to recoup the cost. And remember that adjustable rates can reset upward after the fixed period ends.