Quick Answer
How is a mortgage payment calculated?
// Answer
The monthly principal-and-interest payment uses the amortization formula on the loan amount (home price minus down payment). With a loan of 280,000 at 6.5% over 30 years, the monthly payment is about 1,770. Property tax, insurance, and HOA fees are extra and vary by location.
What affects your payment
- Down payment — a larger one reduces the loan and the payment.
- Rate — small rate changes have a big effect over 30 years.
- Term — a 15-year loan has higher payments but far less total interest than a 30-year.
Why use this tool
Plan your home purchase
Estimate affordability before house-hunting and compare how rate, term, and down payment change your monthly cost. This is an estimate of principal and interest only — the amount you pay your lender each month often also includes property tax and insurance, collected through an escrow account. It is not financial advice.
FAQ
Frequently asked questions
No, it estimates principal and interest only. Property tax, homeowners insurance, and HOA fees are additional.
A bigger down payment means a smaller loan. In the US, a conventional loan with less than 20% down usually requires private mortgage insurance; rules differ for other loan types and in other countries. A bigger down payment lowers your monthly cost.
15-year loans cost more monthly but save substantially on total interest. 30-year loans have lower payments but higher lifetime cost.
Yes, all calculations run in your browser.
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