Why Use This Calculator?
A mortgage is the biggest loan most people ever take, and the sticker price hides the real cost: at 6.5% over 30 years, interest roughly equals the price of the house itself. This calculator shows the true monthly payment and the lifetime interest in one click.
Add your local property tax and homeowners insurance for a realistic all-in monthly number, and scan the year-by-year balance to see how slowly early equity builds — and how fast a 15-year term accelerates it.
How It Works
- Enter the home price and your down payment percentage.
- Set the rate and term, then add optional annual tax and insurance.
- Compare monthly payments and total interest across 15, 20, and 30-year terms.
Frequently Asked Questions
How much down payment do I need?
20% avoids PMI (private mortgage insurance), but many loans accept 3–10% down. Under 20%, expect roughly $40–$100 per $100,000 borrowed in monthly PMI on top of the payment shown here.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan carries a lower rate and dramatically less total interest, but a higher monthly payment. Run both above — the interest difference is usually six figures.
Does this include escrow for taxes and insurance?
Yes — enter annual property tax and insurance and they're divided by 12 and added to the monthly estimate, mirroring how escrowed payments work.
Tips & Things to Watch
- Under 20% down means PMI — a real monthly cost not shown in the P&I number.
- One extra payment a year on a 30-year loan typically cuts about 4–5 years off it.
- Property tax varies hugely by county — look up your actual rate before relying on the default.