Home Buyer Tool
Mortgage Calculator
Estimate your monthly payments, principal & interest breakdown, property taxes, insurance, and view your 10-year loan amortization schedule.
Estimated Monthly Payment
$2,875
includes principal, interest, tax & insurance
Principal & Interest
$2,275
Loan Amount
$360,000
Total Interest
$459,160
Total Payments
$909,160
Amortization Schedule Breakdown (First 10 Years)
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| 1 | $4,024 | $23,282 | $355,976 |
| 2 | $4,293 | $23,012 | $351,683 |
| 3 | $4,581 | $22,725 | $347,102 |
| 4 | $4,888 | $22,418 | $342,214 |
| 5 | $5,215 | $22,090 | $337,000 |
| 6 | $5,564 | $21,741 | $331,435 |
| 7 | $5,937 | $21,368 | $325,498 |
| 8 | $6,334 | $20,971 | $319,164 |
| 9 | $6,759 | $20,547 | $312,405 |
| 10 | $7,211 | $20,094 | $305,194 |
Understanding Your Monthly Mortgage Payment (PITI)
When budgeting to buy a house, your mortgage payment involves more than just principal and interest. Lenders calculate your total monthly obligation using PITI:
1. Principal & Interest
Principal reduces your outstanding loan balance. Interest is the cost paid to your lender for borrowing the money. Early in your loan term, interest makes up the vast majority of your monthly payment.
2. Taxes & Homeowners Insurance
Property taxes are assessed by your local municipality. Homeowners insurance covers property damage. Lenders usually collect 1/12th of these annual costs each month into an escrow account.
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Frequently Asked Questions About Mortgages
How is a monthly mortgage payment calculated?
Your monthly mortgage payment consists of Principal, Interest, Taxes, and Insurance (PITI). Principal pays down the loan balance, interest pays the lender, property taxes go to your local government, and homeowner's insurance protects your home.
What is the difference between a 15-year and 30-year fixed mortgage?
A 30-year fixed mortgage offers lower monthly payments because the principal is spread over 360 months, but results in higher total interest paid. A 15-year mortgage has higher monthly payments but lower interest rates and builds equity twice as fast.
How much down payment do I need to buy a house?
While 20% down eliminates Private Mortgage Insurance (PMI), conventional home loans allow down payments as low as 3%, FHA loans require 3.5%, and VA or USDA loans offer 0% down for eligible borrowers.
What is Private Mortgage Insurance (PMI)?
PMI is insurance that protects the lender if you default on your mortgage. It is generally required on conventional loans when your down payment is less than 20% of the home's purchase price.
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