Advanced Mortgage Calculator & Amortization Schedule
Instantly compute your monthly home loan payment including taxes, insurance, PMI, HOA fees, and see how extra payments build equity faster.
Loan Parameters
Understanding Your Monthly Mortgage Payment
A typical payment has four parts, known as PITI.
Principal & Interest
Principal is what you borrowed; interest is the lender's fee. Early on, most of your payment goes to interest.
Property Taxes
Set by local government on assessed value, usually collected monthly into escrow.
Homeowners Insurance
Covers fire, storm damage and liability. Lenders require proof before closing.
PMI
Required when your down payment is under 20% on conventional loans. Drops off at about 22% equity.
Amortization Schedule
Principal, interest and remaining balance over time.
| Year / Month | Principal | Interest | Total Paid | Balance |
|---|
How Much House Can You Afford?
The 28/36 Rule: housing costs under 28% of gross monthly income, and total debt payments under 36%.
- ✓ Save 20% down to avoid PMI.
- ✓ Improve your credit score for lower rates.
- ✓ Budget closing costs of 2% to 5% of the price.
15-Year vs. 30-Year Fixed
A 30-year loan has lower monthly payments; a 15-year loan usually has a lower rate and saves far more interest overall.
Frequently Asked Questions
How is my monthly payment calculated?
Principal & interest from the standard amortization formula, plus property taxes, insurance, PMI (if under 20% down) and HOA fees.
How much down payment do I need?
Some conventional loans allow 3% down and FHA loans 3.5%. Putting 20% down avoids PMI and often gets a better rate.
How do extra payments help?
Extra principal lowers the balance interest is charged on, cutting total interest and shortening the loan.
What is PMI and how can I avoid it?
PMI protects the lender if you default. Avoid it with 20% down, or refinance once you reach 20% equity.