What is a mortgage loan?

A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan.

How is monthly mortgage payment calculated?

The monthly payment of a mortgage is calculated using the following formula: Payment = Principal × (Rate × (1 + Rate)^Term) ÷ ((1 + Rate)^Term - 1), where Rate is the monthly interest rate and Term is the total number of payments.

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Mortgage Calculator

Plan your home purchase with our mortgage calculator. Calculate monthly payments, interest costs, and more.

Home Price *

Down Payment *

Annual Interest Rate *

Loan Term *

Annual Property Tax

Annual Home Insurance

PMI Rate

Monthly HOA Fees

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Calculation Results

Mortgage calculation is complete. Your results are shown below.

Monthly Payment $0.00

Total Payments $0.00

Total Interest $0.00

Payment Breakdown

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Payment Schedule

View your complete payment schedule

Payment No	Date	Payment	Principal	Interest	Remaining Balance

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How Mortgage Payments Work

Understanding how mortgages work is essential for making informed decisions

Principal and Interest: Your monthly payment includes both the repayment of the loan amount (principal) and the cost of borrowing (interest).
Amortization: As you make payments, more of each payment goes toward the principal and less toward interest over time.
Additional Costs: Your total mortgage payment may include property taxes, homeowners insurance, and private mortgage insurance (PMI).
Interest Rates: The interest rate significantly impacts your monthly payment and the total cost of the loan.

Our calculator helps you understand the total cost of your mortgage, including both principal and interest, across different scenarios.

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Frequently Asked Questions

Common questions about mortgage payments and loans

What factors affect my mortgage payment?

Your mortgage payment is affected by several factors including the loan amount (principal), interest rate, loan term, property taxes, homeowners insurance, and private mortgage insurance (PMI) if required.

How can I lower my monthly payment?

You can lower your monthly payment by making a larger down payment, extending the loan term, finding a lower interest rate, or eliminating PMI by putting 20% or more down.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage typically has lower interest rates and less total interest paid but higher monthly payments. A 30-year mortgage offers lower monthly payments but costs more in total interest over the life of the loan.