Mortgage Calculator

How to estimate your monthly mortgage payment

Your monthly mortgage payment has two guaranteed components: principal — the portion that reduces your loan balance — and interest — the lender's fee for extending the loan. Together these are called P&I. With a fixed-rate mortgage, the P&I payment never changes. What does change month by month is the split: early payments are mostly interest; later payments are mostly principal. This is called amortization.

Most homeowners also pay property taxes and homeowners insurance through their monthly payment via an escrow account managed by the lender. If your down payment is less than 20%, your lender will typically require private mortgage insurance (PMI) as well — usually 0.5–1.5% of the loan amount annually. PMI can be removed once your equity reaches 20%. If your community has a homeowners association, HOA dues are a separate monthly expense on top of your mortgage payment.

What does "down payment" mean for your mortgage?

Your down payment is the upfront cash you put toward the purchase, and it directly determines your loan amount. A larger down payment means a smaller loan, a lower monthly payment, and often a better interest rate from the lender. Putting at least 20% down also eliminates PMI, which can add hundreds of dollars per month to your cost. For example, on a $400,000 home, putting 10% down ($40,000) vs. 20% ($80,000) saves roughly $80–$150/month in PMI alone — before accounting for the lower P&I from the smaller loan.

30-year vs. 15-year mortgage: which is right for you?

The loan term is one of the biggest levers in your mortgage. A 30-year term keeps monthly payments lower and frees up cash flow, but you pay dramatically more interest over the life of the loan. A 15-year term roughly doubles the principal portion of each payment, builds equity much faster, and typically comes with a lower interest rate — but the higher required payment leaves less flexibility in your budget. Use the loan term selector above to compare what a 15-year vs. 30-year mortgage actually costs you over time.

Tips for lowering your mortgage payment

• Put at least 20% down to avoid PMI and reduce the loan balance.
• Shop multiple lenders — even 0.25% lower on the rate can save tens of thousands over 30 years.
• Improve your credit score before applying; higher scores qualify for better rates.
• Consider buying points (prepaid interest) to lock in a lower rate if you plan to stay long-term.
• Once your equity reaches 20%, request PMI cancellation from your lender in writing.