Mortgage Calculator
Estimate your monthly mortgage payment
Formula
M = P[r(1+r)^n] / [(1+r)^n - 1]
- M = Monthly principal & interest payment
- P = Loan amount (Home Price − Down Payment)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total payments (loan term in years × 12)
FAQ
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It typically costs 0.5–1.5% of the loan amount per year and is cancelled once you reach 20% equity.
What is the difference between fixed and adjustable rate mortgages?
A fixed-rate mortgage keeps the same interest rate for the entire loan term, making payments predictable. An adjustable-rate mortgage (ARM) starts with a lower rate that changes periodically based on market conditions.
How does my credit score affect my mortgage rate?
Higher credit scores qualify for lower interest rates. The difference between a 620 and 760 credit score can be 1–2% in interest rate, saving tens of thousands of dollars over a 30-year mortgage.