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- •A 20% down payment helps you avoid PMI (Private Mortgage Insurance).
- •Consider a 15-year mortgage if you can afford higher payments - you'll save significantly on interest.
- •Get pre-approved before house hunting to know your budget and strengthen offers.
- •Your housing payment should ideally be less than 28% of your gross monthly income.
- •Property taxes and insurance can add 30-50% to your base mortgage payment.
- •Making one extra payment per year can cut years off your mortgage and save thousands.
- •Compare total interest paid, not just monthly payment, when choosing mortgage terms.
Enter your home purchase details to calculate your mortgage costs and monthly payment.
Step-by-Step Instructions
Enter the home price and your down payment amount.
Input the interest rate and loan term.
Review your estimated monthly payment and amortization.
When shopping for a home and calculating affordability.
- •Homebuyers
- •Mortgage borrowers
- •Real estate agents
Your mortgage results show the monthly cost and long-term financial impact of your home purchase.
What Each Result Means
Monthly P&I
Principal and Interest payment.
Interpretation: This is your core mortgage cost before taxes and insurance.
Total Interest
Total interest paid over the loan life.
Interpretation: Lower interest rates or shorter terms significantly reduce this number.
What to Do With Your Results
Consider a larger down payment or a longer loan term to improve affordability.
Alex
Looking to optimize their financial strategy using the Mortgage Payment Calculator.
The Challenge
Alex needs to understand the long-term impact of their decisions regarding Mortgage Payment Calculator.
Starting Values
Calculation Breakdown
Input initial parameters into the calculator.
Initial setup complete.
Analyze the projected outcomes.
Strategic insight gained.
Results
Total Benefit
$15,000
Projected over 10 years.
Key Insights
- Early planning leads to better financial outcomes.
- Small changes in inputs can have large long-term effects.
Still have questions? Check our financial glossary for definitions or explore our learning resources.