What is a good mortgage rate?

Rates vary by market conditions. Compare rates from at least 3 lenders — even 0.25% difference saves thousands over the loan life.

How much income do I need for a $400,000 mortgage?

Using the 28% rule, your gross monthly income should be at least $7,600 (28% × $7,600 = $2,128 ≈ the monthly payment). Most lenders cap housing costs at 28% of gross income.

Should I choose a 15-year or 30-year mortgage?

A 30-year loan has lower payments and more flexibility. A 15-year loan builds equity faster and saves tens of thousands in interest. Choose 30-year if cash flow is tight; 15-year if you can comfortably afford the higher payment.

What is PMI and how do I avoid it?

Private Mortgage Insurance is required on conventional loans with less than 20% down. It costs 0.5–1.5% of the loan per year. Avoid it by putting 20% down, using a piggyback loan, or requesting cancellation once you reach 20% equity.

Mortgage Calculator — Estimate Your Monthly Home Loan Payment

Calculate your monthly mortgage payment instantly

Home price ($)

Down payment ($)

Annual interest rate (%)

Loan term

How to use Mortgage Calculator

Free mortgage calculator. Enter home price, down payment, rate, and term to estimate monthly payments, total interest, and full loan cost. Compare 15 vs 30-year loans instantly.

A mortgage calculator helps you estimate your monthly home loan payment before you ever speak to a lender. Enter your home price, down payment, interest rate, and loan term to instantly see your principal-and-interest payment, total interest paid over the life of the loan, and total cost of the home. Use it to compare 15-year vs 30-year loans, test different down payment amounts, or see how much house your budget supports.

How to use this Mortgage Calculator

1Enter the home price — the full purchase price before your down payment.
2Enter your down payment as a dollar amount or percentage. Most conventional loans require at least 3–20%.
3Enter the annual interest rate. Check current rates at your bank, credit union, and online lenders — even 0.25% matters over 30 years.
4Select the loan term: 30 years is the most common; 15 years costs less total interest but has a higher monthly payment.
5The calculator shows your monthly principal-and-interest payment, total interest paid, and total amount paid over the loan life.

Monthly mortgage payment formula explained

Your monthly mortgage payment is calculated using the standard amortization formula. It ensures the loan is fully paid off — with interest — by the end of the term, with equal payments every month.

M = P × [r(1+r)^n] / [(1+r)^n − 1]

Variable	Meaning
M	Monthly payment
P	Principal (loan amount = home price − down payment)
r	Monthly interest rate (annual rate ÷ 12)
n	Total number of payments (years × 12)

Home loan calculator example: $400,000 home with 20% down

01Home price: $400,000. Down payment: $80,000 (20%). Loan amount: $320,000.
02Interest rate: 7.0% annual → monthly rate r = 0.07 ÷ 12 = 0.005833.
03Loan term: 30 years → n = 30 × 12 = 360 payments.
04Monthly payment = $320,000 × [0.005833 × (1.005833)^360] / [(1.005833)^360 − 1]
05Monthly payment = $320,000 × [0.005833 × 10.936] / [10.936 − 1] = $2,129

Result

Monthly payment: $2,129. Total paid over 30 years: $766,440. Total interest: $446,440.

What affects your monthly mortgage payment?

Interest rate

The single biggest lever. At 7% vs 6%, a $320,000 loan costs $189 more per month — $68,000 more over 30 years.

Loan term

A 15-year loan has a higher monthly payment but roughly half the total interest of a 30-year loan.

Down payment

A larger down payment reduces your loan amount and eliminates PMI (typically required when you put down less than 20%).

Property taxes & insurance

Not included in the formula above, but lenders roll them into your monthly escrow payment. Add 1.5–2% of home value annually as an estimate.

Credit score

A 760+ score typically gets the best available rate. Each 20-point drop below 760 can add 0.1–0.3% to your rate.

Loan type

Conventional, FHA, VA, and jumbo loans all carry different rate adjustments and PMI requirements.

Tips and things to know

✓Get rate quotes from at least 3 lenders — banks, credit unions, and online lenders — before accepting any offer.
✓A 15-year mortgage at the same rate as a 30-year roughly doubles your monthly payment but cuts total interest by more than half.
✓Making one extra mortgage payment per year reduces a 30-year loan by 4–5 years.
✓If you put down less than 20%, add PMI costs (0.5–1.5% of loan amount per year) to get your true monthly housing cost.
✓This calculator shows principal and interest only. Budget an additional $300–$700/month for taxes, insurance, and maintenance.

Official resources and further reading

Consumer Financial Protection Bureau — Mortgage Resources

The CFPB's official mortgage guide covering rates, loan types, closing costs, and your rights as a borrower.

HUD.gov — Buying a Home

U.S. Department of Housing and Urban Development guidance on the homebuying process, FHA loans, and housing counselors.

Freddie Mac — 30-Year Fixed Rate Mortgage Average

Weekly current mortgage rate survey from Freddie Mac — the most widely cited benchmark for U.S. mortgage rates.

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