TextGround TextGround

Mortgage Calculator

Calculate monthly payments, full amortization, extra payment savings, and payoff date

Home Details
Monthly Costs
Auto-set if down <20%
See how extra payments reduce term & interest
Enter your details and click Calculate

Mortgage Essentials

How Amortization Works

Each payment has a principal and interest component. Early payments are mostly interest; over time, more goes to principal. This is amortization — your balance slowly decreases.

What is PMI?

Private Mortgage Insurance is required when your down payment is less than 20%. It protects the lender, not you. PMI typically costs 0.5–1.5% of the loan annually and can be removed once you reach 20% equity.

Is Refinancing Worth It?

Refinancing makes sense when rates drop by at least 1-2%. Use the break-even point: divide closing costs by your monthly savings. If you'll stay longer than the break-even, refinancing likely makes sense.

Extra Payments

Even $100/month extra on a $400K mortgage can save $30,000+ in interest and cut years off your loan. All extra payments go directly to principal.

Frequently Asked Questions

How much house can I afford?
The general rule is that housing costs (PITI — principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income. Your total debt payments (including housing) should stay under 36-43%. A $100K income household can typically afford $400K–$500K depending on debts and down payment.
Is refinancing worth it?
Refinancing can save tens of thousands over the life of a loan. The key metric is the break-even period: divide your closing costs by your monthly savings. If you plan to stay in the home longer than this period (typically 2–5 years), refinancing is worth it. Also consider resetting your amortization clock.
How does making extra payments help?
Extra payments reduce your principal directly, which reduces the interest accrued on the remaining balance. On a 30-year mortgage, paying an extra $200/month can save 4-7 years and $50,000+ in interest, depending on your loan balance and rate.
15-year vs 30-year mortgage — which is better?
A 15-year mortgage has lower interest rates (often 0.5–1% less) and builds equity faster, but monthly payments are ~40% higher. A 30-year mortgage offers flexibility — you can always make extra payments when able. If the rate difference is small, a 30-year with extra payments is often the best of both worlds.