Mortgage Calculator
Calculate your monthly mortgage payment and total interest for any home loan. View the full amortization schedule to understand how each payment is split between principal and interest over the life of your mortgage.
Frequently Asked Questions
Understanding Mortgages
A mortgage is a loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property serves as collateral to secure the loan.
How Mortgage Payments Work
Your monthly mortgage payment consists of principal (the amount that reduces your loan balance) and interest (the cost of borrowing). In the early years of your mortgage, most of your payment goes toward interest. As the loan matures, more of each payment goes toward principal. This process is called amortization.
Types of Mortgages
The most common types include fixed-rate mortgages (where the interest rate stays the same for the entire loan term), adjustable-rate mortgages (ARM, where the rate can change after an initial fixed period), FHA loans (government-backed loans with lower down payment requirements), and VA loans (available to military veterans with no down payment required).
Factors That Affect Your Monthly Payment
Several factors determine your monthly mortgage payment: the loan amount (purchase price minus down payment), interest rate, loan term (usually 15 or 30 years), property taxes, homeowners insurance, and PMI (if applicable). Using this calculator, you can experiment with different scenarios to find the best option for your financial situation.
Tips for Getting the Best Mortgage Rate
To secure the best mortgage rate: improve your credit score (aim for 740+), save for a larger down payment (20% or more to avoid PMI), compare offers from multiple lenders, consider buying points to lower your rate, choose the right loan term for your situation, and lock in your rate when rates are favorable.
Mortgage Around the World
Mortgage structures vary globally. In the US and Canada, 30-year and 25-year fixed-rate mortgages are common. In the UK, most mortgages are variable rate with initial fixed-rate periods of 2-5 years. In Australia, variable-rate mortgages are more popular. Our calculator supports multiple currencies, making it useful regardless of your location.