Mortgage Calculator

Estimate your monthly mortgage payment and view detailed amortization schedule

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About Mortgage Calculator

A mortgage is a long-term loan specifically designed for purchasing real estate, such as a house or apartment. In a typical mortgage, the property you buy serves as collateral for the loan, meaning the lender can take possession of the property if you fail to make payments. Mortgages usually span 15 to 30 years, and your monthly payment is made up of several components: principal (the amount you borrow), interest (the cost of borrowing), property taxes, homeowner's insurance, and sometimes HOA (Homeowners Association) fees. Understanding the full breakdown of your mortgage payment is crucial for budgeting, comparing loan offers, and planning for the true cost of homeownership. This calculator helps you estimate your total monthly payment and visualize how your payments are distributed over time, empowering you to make informed decisions about your home purchase.

How to Use This Calculator

  1. Enter your home price or loan amount
  2. Specify the annual interest rate
  3. Set your loan term in years and months
  4. Enter annual property tax and insurance, and monthly HOA fees if applicable
  5. Click "Calculate Mortgage" to see your payment breakdown

Features

  • Estimate monthly mortgage payment (principal, interest, tax, insurance, HOA)
  • View total interest and total payment
  • See complete amortization schedule
  • Analyze payment components with interactive charts
  • Flexible input for taxes, insurance, and HOA

Important Considerations

  • Monthly payment includes principal, interest, property tax, insurance, and HOA (if any)
  • Interest portion is higher in early years, principal increases over time
  • Does not include one-time costs like closing fees or down payment
  • Actual property tax and insurance may vary by location
  • Consult your lender for exact payment details

Frequently Asked Questions

  • What is a mortgage?
    • A mortgage is a loan used to buy a home or real estate, where the property is collateral for the loan.
    • The lender can take possession of the property if you fail to make payments.
  • What does my monthly mortgage payment include?
    • Your monthly mortgage payment typically includes principal (the amount you borrowed), interest (the cost of borrowing), property tax, homeowner's insurance, and HOA fees if applicable.
  • How is my monthly mortgage payment calculated?
    • The payment is calculated based on the loan amount, interest rate, loan term, and additional costs like property taxes, insurance, and HOA fees. The principal and interest portion is calculated using a standard mortgage amortization formula.
  • Why does the interest portion of my mortgage payment decrease over time?
    • In the early years of your mortgage, a larger portion of your payment goes toward interest because the outstanding principal is higher. As you pay down the principal, the interest portion decreases and the principal portion increases.
  • What are property taxes and homeowner's insurance?
    • Property tax is a yearly tax paid to your local government based on your property's value. Homeowner's insurance protects your property against damage or loss. Both are often included in your monthly mortgage payment.
  • What is an HOA fee?
    • HOA (Homeowners Association) fees are monthly dues paid by some homeowners for community maintenance, amenities, and services. Not all properties have HOA fees.
  • Can I pay off my mortgage early?
    • Yes, making extra payments toward your mortgage can reduce your total interest and shorten your loan term. Check with your lender for any prepayment penalties or restrictions.
  • What happens if I miss a mortgage payment?
    • Missing a mortgage payment can result in late fees, negatively impact your credit score, and in severe cases, lead to foreclosure. Contact your lender immediately if you anticipate difficulty making payments.