Mortgage Calculator

How Much Will Your Mortgage Cost?

Buying a home is the largest financial decision most people will ever make — and the monthly mortgage payment determines whether that decision is comfortable or crushing. Our mortgage calculator breaks down your total monthly payment including principal, interest, property taxes, homeowners insurance, and PMI so you can see the full picture before you commit.

The average 30-year fixed mortgage rate in the U.S. sits around 6.4% as of April 2026, though rates vary based on your credit score, down payment size, and loan type. Even a small rate difference — say 6.0% versus 6.5% — can mean tens of thousands of dollars in additional interest over the life of a 30-year loan.

Quick example: On a $400,000 home with 20% down and a 6.4% rate on a 30-year fixed mortgage, your monthly principal and interest payment would be approximately $2,005. Add property taxes (~$350/mo), insurance (~$130/mo), and you're looking at roughly $2,485/month total.

How Our Mortgage Calculator Works

This calculator uses the standard amortization formula to compute your monthly payment. You enter four core inputs: home price, down payment (as a dollar amount or percentage), loan term (typically 15 or 30 years), and interest rate. The calculator then computes your monthly principal and interest payment, adds estimated property taxes and insurance based on national averages, and determines whether PMI applies.

Private Mortgage Insurance (PMI) kicks in when your down payment is less than 20% of the home's purchase price. PMI typically costs between 0.5% and 1.5% of the loan amount per year. On a $320,000 loan, that's $133–$400/month added to your payment. PMI drops off once you reach 20% equity in the home.

The amortization schedule shows how each payment splits between principal and interest over the life of the loan. In the early years, most of your payment goes toward interest. By the final years, nearly all of it goes toward principal. Understanding this shift helps you evaluate whether making extra payments or refinancing makes financial sense.

2026 Mortgage Rate Snapshot

Current average rates vary by loan type. Conventional 30-year fixed loans average around 6.4%, while 15-year fixed loans average approximately 5.7%. FHA loans typically run 0.1–0.3% lower than conventional loans but require mortgage insurance for the life of the loan. VA loans offer competitive rates with no down payment or PMI requirement for qualifying veterans.

ARM (adjustable-rate mortgage) loans start with lower introductory rates — often 1–2% below fixed rates — but carry the risk of rate increases after the initial fixed period. A 5/1 ARM, for example, has a fixed rate for 5 years, then adjusts annually based on market indices.

What determines your rate: Your credit score is the single largest factor. Borrowers with scores above 760 typically receive the best rates. A score of 620–679 might add 0.5–1.5% to your rate compared to a top-tier borrower. Other factors include your debt-to-income ratio (lenders generally want this below 36%), loan-to-value ratio, and the property type and location.

How Much House Can You Afford?

The traditional guideline is the 28/36 rule: your mortgage payment (including taxes and insurance) should not exceed 28% of your gross monthly income, and your total debt payments should stay below 36%.

For a household earning $100,000/year ($8,333/month gross), this means a maximum mortgage payment of approximately $2,333/month. At a 6.4% rate on a 30-year loan with 20% down, that supports a home price of roughly $430,000–$450,000, depending on local property taxes and insurance costs.

However, the 28/36 rule is a starting point, not a hard ceiling. Your personal comfort with housing costs depends on your other financial goals — retirement savings, emergency fund, children's education, lifestyle spending — and local cost-of-living factors. Some lenders will approve loans with debt-to-income ratios up to 43% or even 50%, but qualifying for a loan and being comfortable with the payment are two very different things.

Fixed-Rate vs. Adjustable-Rate: Which Is Right?

Choose a fixed-rate mortgage if you plan to stay in the home for more than 7 years, you value payment predictability, or you believe rates may rise. The 30-year fixed remains the most popular option in the U.S., accounting for roughly 70–90% of all mortgages.

Choose an adjustable-rate mortgage if you plan to sell or refinance within 5–7 years, you want a lower initial payment, or you believe rates will decline. ARM loans carry interest rate risk — if rates rise significantly after the introductory period, your payment could increase substantially.

15-year vs. 30-year fixed: A 15-year mortgage typically offers a lower interest rate (often 0.5–0.75% less) and saves you hundreds of thousands in total interest, but the monthly payment is significantly higher. On a $320,000 loan at 5.7% for 15 years, the monthly payment is approximately $2,660 — compared to $1,862 for a 30-year at 6.4%. The 15-year loan saves about $163,000 in total interest.

Hidden Costs Beyond Your Mortgage Payment

Your mortgage payment is just one piece of the total homeownership cost. Budget for these additional expenses that the calculator helps you estimate:

Property taxes vary dramatically by location. The national average effective rate is approximately 1.1% of the home's assessed value, but this ranges from 0.28% in Hawaii to 2.47% in New Jersey. On a $400,000 home, that's a difference of $93/month versus $823/month.

Homeowners insurance averages roughly $1,500–$2,000/year nationally, but costs more in disaster-prone areas. Flood insurance, if required, adds $500–$3,000/year.

Maintenance and repairs are often estimated at 1–2% of the home's value per year. For a $400,000 home, that's $4,000–$8,000/year, or $333–$667/month set aside.

HOA fees apply to condos, townhomes, and some single-family communities. These range from $100 to $700+/month depending on amenities and location.

Closing costs typically run 2–5% of the loan amount, paid upfront at the time of purchase. On a $320,000 loan, expect $6,400–$16,000 in closing costs.

Tips to Lower Your Monthly Payment

Making a larger down payment reduces your loan principal, eliminates PMI (at 20%+), and may qualify you for a lower interest rate. Even increasing your down payment from 10% to 15% can meaningfully reduce your monthly obligation.

Improving your credit score before applying can save you thousands. Moving from a 680 to a 740 score might drop your rate by 0.5%, which on a $320,000 loan saves roughly $100/month and $36,000 over 30 years.

Shopping multiple lenders is essential. Rates and fees can vary significantly between banks, credit unions, and online lenders. Getting at least 3–5 quotes and comparing Loan Estimates is one of the most impactful steps you can take.

Consider mortgage points (also called discount points). Paying 1% of the loan amount upfront ($3,200 on a $320,000 loan) typically reduces your rate by 0.25%. This makes sense if you plan to keep the mortgage for at least 5–7 years.