Free Mortgage Calculator | Payment & Amortization Schedule

Understanding Your Mortgage Calculator Results

Our mortgage calculator helps you estimate your monthly mortgage payments and understand the full cost of homeownership. Here's what each component means:

Monthly Payment Components

• Principal and Interest: The base monthly payment that goes toward paying off your loan.
• Property Taxes: Annual property taxes divided into monthly payments.
• Home Insurance: Your annual homeowner's insurance premium divided into monthly payments.
• PMI (Private Mortgage Insurance): Required if your down payment is less than 20% of the home price.
• HOA Fees: Monthly homeowners association fees, if applicable.

Understanding Amortization

The amortization schedule shows how your loan balance decreases over time. In the early years, a larger portion of your payment goes toward interest. As time progresses, more of each payment goes toward reducing the principal balance.

Frequently Asked Questions

How is my monthly mortgage payment calculated?

Your monthly mortgage payment is calculated using several factors:

• Principal loan amount
• Interest rate
• Loan term (usually 15 or 30 years)
• Property taxes
• Home insurance
• Private Mortgage Insurance (if applicable)

What is PMI and when is it required?

Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home's purchase price. PMI protects the lender if you default on your loan. Once you build up 20% equity in your home, you may be able to remove PMI.

How can I lower my monthly mortgage payment?

There are several ways to lower your monthly mortgage payment:

• Make a larger down payment
• Extend the loan term (though this increases total interest paid)
• Find a lower interest rate
• Buy a less expensive home
• Avoid PMI by putting 20% down
• Shop around for better property insurance rates

Making Extra Payments

Making extra payments can significantly reduce your loan term and total interest paid. Even small additional monthly payments can make a big difference over time. Use our calculator to see how extra payments affect your amortization schedule.

Mortgage Terms and Definitions

Principal

The original amount of money borrowed in the mortgage loan.

Interest Rate

The percentage charged by the lender for borrowing the money, expressed as an annual rate.

Amortization

The process of paying off a debt over time through regular payments, split between principal and interest.

Escrow

An account managed by your lender to pay property taxes and insurance premiums.