Mortgage Calculator
Calculate your monthly mortgage payment and understand how home price, down payment, interest rate, and loan term affect your total cost of homeownership.
Home Details
Loan Breakdown
Bank of America
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Important Legal Disclaimer
For Educational and Informational Purposes Only: This calculator provides estimates and approximations based on the information you provide. Results are not exact and should not be relied upon for any official, legal, financial, medical, or professional purposes.
No Professional Advice: The calculations and information provided do not constitute financial advice, legal advice, tax advice, medical advice, or any other form of professional consultation. Always consult with qualified professionals (financial advisors, attorneys, tax professionals, healthcare providers, etc.) before making important decisions.
No Liability: By using this calculator, you acknowledge that the results are estimates only. We make no warranties or guarantees about the accuracy, completeness, or reliability of the calculations. Use of this tool is at your own risk.
This disclaimer complies with applicable U.S. federal and state laws regarding the provision of informational tools and the limitation of liability for educational resources.
Abbreviations Explained
PMI (Private Mortgage Insurance): Insurance required by lenders when down payment is less than 20% of home value. Protects the lender if you default.
APR (Annual Percentage Rate): The yearly cost of the mortgage including interest rate and fees, expressed as a percentage.
Principal: The original loan amount borrowed to purchase the home, excluding interest.
Interest: The cost of borrowing money from the lender, calculated based on the loan amount and interest rate.
Amortization: The process of paying off the loan through regular payments over time, with each payment covering both principal and interest.
Escrow: An account where funds for property taxes and insurance are held and paid by the lender on your behalf.
How the Calculation Works
This calculator uses the standard mortgage payment formula:
Where:
- M = Monthly payment
- P = Principal loan amount (home price - down payment)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (loan term in years × 12)
Example: $300,000 loan at 6.5% for 30 years:
• P = $300,000
• r = 0.065 ÷ 12 = 0.00542
• n = 30 × 12 = 360 payments
• Monthly payment = $1,896
• Total interest over 30 years = $382,633
Understanding Mortgages
A mortgage is a loan used to purchase real estate, where the property serves as collateral. Key factors that determine your monthly payment:
- Home Price: The purchase price of the property you're buying.
- Down Payment: The upfront amount you pay, typically 3-20% of the home price. A larger down payment reduces your loan amount and may eliminate PMI.
- Interest Rate: The cost of borrowing, influenced by credit score, market conditions, and loan type.
- Loan Term: Most common are 15-year and 30-year mortgages. Shorter terms mean higher monthly payments but less total interest.
Remember: Your total monthly housing cost includes property taxes, homeowners insurance, and potentially HOA fees, which aren't included in this calculator.
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