Mortgage Calculator
Calculate monthly mortgage payments including taxes and insurance.
What Is the Mortgage Calculator?
A mortgage calculator gives you a realistic picture of what homeownership will cost each month. It factors in not just the loan, but also property taxes, homeowners insurance, and sometimes PMI.
The Formula
M = P[r(1+r)^n/((1+r)^n-1)] + monthly taxes + monthly insurance.
Example
A $450,000 home with a 10% down payment of $45,000 at 6.5% for 30 years: principal and interest of $2,559 per month. Adding $375 for property taxes and $125 for homeowners insurance brings the total monthly payment to about $3,059.
Common Uses
Home buying, refinance planning, comparing loan terms.
Frequently Asked Questions
What is PMI and when do I need it? ▼
PMI (Private Mortgage Insurance) protects the lender if you default. You typically need it when your down payment is less than 20%. It adds $100-$300 per month to your payment depending on loan size and credit.
What is the difference between pre-qualification and pre-approval? ▼
Pre-qualification is an informal estimate based on self-reported information. Pre-approval involves a lender reviewing your credit and finances to give a firm commitment. Sellers take pre-approval more seriously.
How much home can I afford? ▼
Most lenders use the 28/36 rule: your monthly housing costs should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. Enter different home prices in this calculator to find your comfort zone.
Common Mistakes to Avoid
- ⚠ Ignoring property taxes and insurance when estimating monthly costs. These can add $500-$1,000+ per month.
- ⚠ Shopping for homes before getting pre-approved. You might fall in love with a home you cannot afford.
- ⚠ Making only the minimum down payment when you could afford more. Even 5% extra can save thousands in PMI and interest.
Last updated: 2026-07-28 · by CalculatorPro Tools