Calculate your estimated monthly mortgage payment instantly
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Book a DemoMonthly mortgage payment is calculated using the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments (loan term in years times 12).
A typical mortgage payment includes principal (the loan amount), interest, property taxes, and homeowners insurance. This is often referred to as PITI. Some loans also include private mortgage insurance (PMI) if the down payment is less than 20%.
Interest rates vary based on market conditions, credit score, loan type, and down payment. Generally, rates within 0.5% of the national average are considered competitive. Check current rates with multiple lenders to find the best offer for your situation.
A common guideline is that your monthly housing costs (including mortgage, taxes, and insurance) should not exceed 28% of your gross monthly income. Your total debt payments should not exceed 36% of your gross income. Use this calculator to estimate payments and determine what fits your budget.
A 15-year mortgage typically has lower interest rates and you'll pay less interest overall, but monthly payments are higher. A 30-year mortgage has lower monthly payments, giving you more flexibility, but you'll pay more interest over the life of the loan. Choose based on your financial goals and monthly budget.