Goal Calcs LogoGoal Calcs
Simple LoanSimple LoanMortgageMortgageAuto LoanAuto LoanCredit CardCredit CardAffordabilityAffordabilityBalloonBalloonSavingsSavings

Mortgage Calculator

Help us improve: submit feedback

info
The total price of the home you are buying.
info
The amount of money you pay upfront when buying a home.
info
The percentage of the loan charged as interest.
info
The time period over which you will repay the loan.
info
An additional amount paid each month to reduce the principal faster.
Monthly Payment:$1,893.72
Total Home Cost: $586,538.79
Loan Principal
Interest
Down Payment
Closing Costs

How Mortgages Work

A mortgage is a loan specifically designed to help you purchase a home. When you get a mortgage, you borrow money from a lender and agree to pay it back over a set number of years. Your monthly payment typically includes principal, interest, property taxes, and homeowners insurance (a concept known as PITI). This calculator breaks down these costs to give you a clear picture of your potential monthly housing expense.

Term Definitions

Purchase Price

This is the agreed-upon price of the property between the buyer and the seller. It is the starting point for most mortgage calculations, as the loan amount is typically the purchase price minus the down payment.

Down Payment

A down payment is the amount of money you pay upfront when purchasing a home, and it is not part of the loan. It can be expressed as a fixed dollar amount or a percentage of the purchase price. A larger down payment can result in a lower interest rate and monthly payment, and may help you avoid private mortgage insurance (PMI).

Interest Rate

The interest rate is the percentage of the principal that a lender charges for borrowing money. It is typically expressed as an annual rate. A lower interest rate will result in lower monthly payments and less total interest paid over the life of the loan.

Loan Term (Years)

The loan term is the duration over which the loan is scheduled to be repaid. Common loan terms are 15 or 30 years for mortgages, or 3-7 years for personal or auto loans. A longer term usually means lower monthly payments but more total interest paid.

Extra Monthly Payment

Making an extra payment each month, in addition to your required monthly payment, can significantly reduce your loan's total cost. This extra amount is applied directly to the principal, which helps you pay off the loan sooner and save on interest.

Origination Fee (%)

An origination fee is an upfront fee charged by a lender to process a new loan application. It is typically a percentage of the total loan amount and is sometimes negotiable.

Closing Costs

Closing costs are fees associated with completing a real estate transaction. They typically range from 2% to 5% of the home's purchase price and can include appraisal fees, title insurance, attorney fees, and more. These costs are paid at closing, when the title of the property is transferred to the buyer.

Appraisal Fee

An appraisal fee pays for a professional appraiser to estimate the fair market value of a property. Lenders require an appraisal to ensure that the loan amount is not more than the value of the home.

Title Insurance

Title insurance is a policy that protects both lenders and buyers from financial loss due to defects in a property's title, such as outstanding liens or ownership disputes. It is a one-time fee paid at closing.

Other Fees

This category can include various miscellaneous fees required at closing, such as attorney fees, recording fees (for public records), or survey fees. It's a catch-all for costs not covered by other specific fields.

Property Tax

Property taxes are levied by local governments and are typically based on the assessed value of your home. These taxes fund public services like schools, police, and fire departments. They can be paid annually or escrowed as part of your monthly mortgage payment. You can input this as a dollar amount, a percentage of the purchase price, or as a mill rate.

Annual Home Insurance

Homeowners insurance is a policy that protects your property against damages from events like fire, theft, or storms. Lenders require this insurance to protect their investment. The cost is typically paid annually or escrowed into your monthly mortgage payment.

Monthly HOA Fees

Homeowners association (HOA) fees are monthly dues paid by homeowners in a condominium or planned community. These fees cover the maintenance of common areas and other shared amenities.

PMI Rate (%)

Private mortgage insurance (PMI) protects the lender when you borrow more than 80% of the home's value. It typically costs 0.3% to 1.5% of the loan amount per year, charged monthly, with better credit earning lower rates. PMI ends automatically once your loan balance reaches 78% of the home's original value — and extra payments get you there sooner.