Mortgage Calculator Estimate payments, interest, and payoff timelines — with refinancing, extra payments, and affordabili...

Mortgage Calculator

Estimate payments, interest, and payoff timelines — with refinancing, extra payments, and affordability analysis.

Standard

Extra Payments

Refinance

Affordability

Home Price ($)

Down Payment (%)

Interest Rate (%)

Loan Term (Years) 15 years 30 years

Loan Type Conventional FHA VA

Estimated Monthly Housing Costs

Property Tax ($/yr)

Home Insurance ($/yr)

HOA ($/mo)

Loan Amount ($)

Rate (%)

Term (Years)

Lump Sum ($)

Monthly Extra ($)

Start Month

Current Balance ($)

Current Rate (%)

New Rate (%)

Closing Costs ($)

Remaining Term (Yrs)

Annual Income ($)

Monthly Debt ($)

Target DTI (%)

$0

Monthly Payment (PITI)

$0

Total Interest

$0

Loan Amount

0.00%

DTI Ratio

Amortization Breakdown

How Mortgages Work

A mortgage is an amortizing loan where each payment covers:

• Principal: Reduces your debt
• Interest: Cost of borrowing (higher early on)
• Taxes & Insurance (PITI): Often paid via escrow

Example: $320K loan @ 6.8% for 30 yrs: • Payment 1: $1,812 interest, $374 principal • Payment 120 (10 yrs): $1,530 interest, $656 principal • Payment 360 (30 yrs): $18 interest, $2,168 principal

✅ Pro Tip: Extra payments early save the most — because you reduce the balance when interest is highest.

Red Flags to Avoid

⚠️ Watch for these risky features:

• Negative Amortization: Payment < interest → balance grows (common in option ARMs).
• Teaser Rates: Low intro rate, then jumps 2–4% (e.g., 3.5% → 7.5% after 5 yrs).
• Prepayment Penalties: Fee for refinancing/early payoff (check your contract!).
• Interest-Only Periods: 5–10 yrs at $1,800/mo, then jumps to $2,600/mo.

✅ Always ask: “Are there prepayment penalties? Is this a fixed or adjustable rate?”

2025 Mortgage Benchmarks

Term	Avg. Rate	Payment on $320K
30-Yr Fixed	6.8%	$2,086/mo
15-Yr Fixed	6.0%	$2,712/mo
5/1 ARM	5.8% (intro)	$1,877/mo (first 5 yrs)

📉 Savings Tactics: • **Bi-weekly**: Pay half-monthly every 2 weeks → **$83K interest saved** • **$200/mo extra**: Cuts 30-yr to **22.3 years**, saves **$64K interest** • **Refinance from 7.5% → 5.8%**: Saves **$175/mo**, break-even in **2.1 years**

How to Use This Calculator

➡️ Standard

Enter home price, down payment, rate, and term to get full PITI payment and amortization.

➡️ Extra Payments

Test lump sums (bonus, inheritance) or recurring extra payments.

➡️ Refinance

See monthly savings, break-even point, and total interest saved.

➡️ Affordability

Determine how much home you can afford based on income and DTI rules.

Note: Assumes fixed rate, no fees unless specified. ARM scenarios require manual modeling.