Mortgage Calculator
Estimate your monthly payments and see how much interest you'll pay over the life of your loan.
How is my mortgage calculated?
We use the standard amortization formula to determine your monthly principal and interest payments. The total cost includes the original loan amount plus the strictly calculated interest based on your rate.
Frequently Asked Questions
What is a good interest rate?
How much house can I afford?
What is PMI (Private Mortgage Insurance)?
The 2024 Mortgage Guide
Navigating the housing market in 2024 requires a strategic approach. With interest rates stabilized but higher than the historical lows of 2020, borrowers must focus on three key pillars:
- Credit Optimization: A score above 740 typically secures the best available rates.
- Debt-to-Income (DTI) Ratio: Lenders prefer a total DTI below 43%.
- Down Payment Strategy: While 20% avoids PMI, many modern programs allow for as little as 3% to 3.5% down.
Understanding Amortization
Amortization is the process of spreading out a loan into a series of fixed payments. In the early years of your mortgage, a larger portion of your payment goes toward interest. As the balance decreases, more of your payment is applied to the principal.
By using our calculator, you can visualize exactly when that "crossover" happens, helping you decide if making extra principal payments is the right move for your financial goals.