Your Monthly Payment
$0
Total Monthly Payment
💰 Loan Summary
Loan Amount: $0
Total Interest Paid: $0
Total Cost: $0
📊 Amortization Schedule (First Year)
| Month |
Principal |
Interest |
Balance |
Understanding Your Mortgage Payment
What's Included in Your Monthly Payment?
Most mortgage payments include four main components, often called PITI:
- Principal: The amount you borrowed that goes toward paying down the loan balance
- Interest: The cost of borrowing money, paid to the lender
- Taxes: Property taxes collected by your lender and paid to local government
- Insurance: Homeowner's insurance to protect your property
What is PMI?
Private Mortgage Insurance (PMI) is required when you put down less than 20% on a conventional loan. It typically costs 0.5-1% of the loan amount annually and protects the lender if you default. Once you reach 20% equity, you can request to remove PMI.
15-Year vs 30-Year Mortgage
30-Year Mortgage:
- Lower monthly payments
- More flexibility in your budget
- Pay significantly more interest over life of loan
- Takes longer to build equity
15-Year Mortgage:
- Higher monthly payments
- Much less total interest paid (often half!)
- Build equity faster
- Typically lower interest rates
How Extra Payments Can Save You Thousands
Making even small extra payments toward your principal can save you tens of thousands of dollars in interest and shorten your loan term by years. For example, on a $300,000 loan at 6.5% for 30 years:
- Extra $100/month saves ~$48,000 in interest and pays off loan 5 years early
- Extra $200/month saves ~$80,000 in interest and pays off loan 8 years early
- Extra $500/month saves ~$128,000 in interest and pays off loan 13 years early
What Credit Score Do You Need?
Your credit score significantly impacts your interest rate:
- 760+: Best rates available
- 700-759: Good rates
- 680-699: Average rates
- 620-679: Higher rates, may need larger down payment
- Below 620: Difficult to qualify for conventional loans
Tips for Getting the Best Mortgage Rate
- Improve your credit score before applying
- Save for a larger down payment (20%+ avoids PMI)
- Compare rates from multiple lenders
- Consider buying discount points to lower your rate
- Get pre-approved before house hunting
- Don't make major purchases before closing
Hidden Costs of Home Ownership
Beyond your mortgage payment, budget for:
- Maintenance: 1-3% of home value annually
- Utilities: Electric, gas, water, internet
- HOA Fees: If applicable, often $200-500/month
- Closing Costs: 2-5% of purchase price (one-time)
- Repairs: HVAC, roof, plumbing emergencies
Legal Disclaimers & Privacy
Educational Purposes Only: This calculator provides estimates and should not be considered financial advice. Actual mortgage terms vary by lender, credit history, and location. Consult with licensed mortgage professionals and financial advisors.
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