How much house can I afford?

The 28/36 rule suggests your mortgage payment (including property tax and insurance) should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. Lenders also consider credit score, down payment, and existing debts. Use conservative estimates to avoid becoming house poor.

What is PMI and how can I avoid it?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5-1% of the loan amount annually. To avoid PMI, make a 20% down payment, use a piggyback loan (80-10-10), or qualify for VA/USDA loans that don't require PMI.

Should I choose a 15-year or 30-year mortgage?

A 30-year mortgage offers lower monthly payments and more flexibility, making it popular for first-time buyers. A 15-year mortgage has higher monthly payments but significantly less total interest (often 50-60% less) and builds equity faster. Choose based on your budget, other financial goals, and risk tolerance.

What is a good mortgage interest rate?

Mortgage rates vary with economic conditions. As of 2024, good rates are 6.5-7.5% for 30-year fixed mortgages. Rates depend on credit score, down payment, loan type, and market conditions. Compare rates from multiple lenders and consider points to lower your rate if you plan to stay long-term.

How much should I put down on a house?

The traditional recommendation is 20% to avoid PMI and get better rates. However, many buyers put down less: FHA loans require just 3.5%, conventional loans allow 3%, and VA loans require 0%. While lower down payments increase monthly costs and total interest, they help you buy sooner and start building equity.

What is included in my monthly mortgage payment?

Your monthly payment typically includes Principal, Interest, Taxes, and Insurance (PITI). Principal reduces your loan balance, interest is the cost of borrowing, property taxes are paid to local government, and insurance includes homeowners insurance and PMI if applicable. Some loans also include HOA fees.

Home Loan Calculator

Free, accurate home loan calculator with instant results. Calculate payments, interest, and total costs in seconds.

Calculate Mortgage Payment

Home Price

$50,000.00$350,000.00$5,000,000.00

Down Payment

$0.00$70,000.00$1,000,000.00

Interest Rate (APR)

2%7%12%

Loan Term (Years)

years

10 years30 years30 years

Property Tax Rate (Annual)

0%1.2%5%

Monthly Mortgage Payment

Total Monthly Payment (PITI)

$2,296.18

Principal & Interest

$1,862.85

Property Tax

$350.00

Insurance

$83.33

Monthly Payment Breakdown

Loan Details

Loan Amount:$280,000.00

Down Payment:20.0%

Total Interest:$390,624.92

Total Cost:$670,624.92

How to Use This Calculator

Home Price

Enter the purchase price of the home.

Down Payment

Input your down payment amount (20% recommended).

Interest Rate

Enter the mortgage interest rate (APR).

Loan Term

Choose loan duration (typically 15 or 30 years).

View Breakdown

See complete PITI payment breakdown.

Compare Options

Adjust values to find the best mortgage.

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