Mortgage Calculator

Most US home loans are fully amortizing fixed-rate mortgages: the same payment every month, with early payments heavily weighted toward interest and later payments toward principal. The standard terms are 30 years and 15 years. Worked example. Borrow $400,000 over 30 years at 7.0%: monthly P&I = $2,661. Total interest paid = $557,946 — nearly 1.4× the original loan. The same loan over 15 years: monthly P&I = $3,595 (35% higher) but total interest = $247,052, saving $310,894 over the life of the loan.

A 30-year mortgage has a lower monthly payment, preserving cash flow for other investments or expenses. A 15-year mortgage typically carries a lower interest rate (often 0.5–0.75 percentage points less) and cuts total interest roughly in half. The right choice depends on your income stability, other investment returns, and whether you plan to stay in the home long-term. The Compare Scenarios tab lets you model both side by side with your exact numbers.

Closing costs typically run 2–5% of the loan amount and include: origination fees, discount points, title insurance (owner's and lender's), appraisal ($400–$700), home inspection, prepaid interest, and escrow setup for property taxes and homeowners insurance. Some lenders advertise "no-closing-cost" mortgages — these typically roll the costs into a higher interest rate. Use the cost breakdown section to compare total upfront cash requirements. Source: CFPB – Typical closing costs

If your down payment is less than 20% of the purchase price, most conventional lenders require PMI. Annual PMI premiums typically run 0.5–1.5% of the loan amount depending on your LTV and credit score — roughly $100–$300/month on a $300,000 loan. PMI drops off automatically once your LTV reaches 78% (under the Homeowners Protection Act), or you can request removal at 80% LTV. FHA loans carry their own mortgage insurance premium (MIP) which works differently and, for loans with less than 10% down, lasts the life of the loan.

FHA loans allow down payments as low as 3.5% with credit scores of 580+. They require both an upfront MIP (1.75% of loan amount) and an annual MIP (0.55–1.05% depending on LTV and term). VA loans are available to eligible veterans, active-duty service members, and surviving spouses. No down payment, no PMI, and competitive rates — but a funding fee of 1.25–3.3% applies (waived for some disability-rated veterans). USDA loans offer 100% financing in eligible rural and suburban areas for borrowers meeting income limits.

Adding even a small extra payment each month can dramatically reduce total interest. An extra $200/month on a $400,000 30-year loan at 7% saves over $93,000 in interest and cuts the term by nearly 5 years. Toggle Add extra payment in the calculator to see your own projection. Confirm with your lender that extra payments are applied to principal (not future payments).