Mortgage Calculator
Calculate your monthly payment with taxes, insurance & PMI
Calculate your true monthly mortgage payment in seconds — including principal, interest, property taxes, homeowners insurance, and PMI. Our free mortgage calculator uses 2026 tax rates and real insurance data from all 50 states to give you the real number lenders use, not just a ballpark estimate.
| Loan Amount | $280,000 |
| Down Payment | $70,000 |
| Total Interest Paid | $327,518 |
| Total Cost of Loan | $607,518 |
| Property Tax (annual) | $3,864 |
| Insurance (annual) | $1,200 |
| Total Home Cost | $612,582 |
| Year | Principal | Interest | Balance |
|---|
| Year | Mo | Principal | Interest | Cum. Principal | Cum. Interest | Balance |
|---|
Key Takeaways
- •Your monthly payment includes P&I, property tax, insurance, and potentially PMI and HOA
- •Putting 20% down eliminates PMI, saving $100-$300/month
- •Shopping 3-5 lenders can save 0.25-0.50% on your rate
- •Even $100/month extra toward principal can shorten your loan by 5+ years
Compare Mortgage Lenders
Pre-qualify with multiple lenders to find the best rate. It won't affect your credit score.
Advertiser Disclosure: We may earn a commission when you click links or apply through our partners.
Loan Type Comparison
Property Tax Rates by State
Property taxes vary dramatically by state. On a $300,000 home, annual taxes range from $840 in Hawaii to over $7,400 in New Jersey. Select your state in the calculator above to auto-fill the current rate.
Source: Tax Foundation 2025. Rates are effective averages including county and local levies.
Related Tools
Frequently Asked Questions
Understanding Your Mortgage: A Complete Guide
How Mortgage Payments Work
Every monthly mortgage payment is split into four parts: principal (reducing your loan balance), interest (the lender's fee), property taxes (funded through escrow), and homeowners insurance (also through escrow). This is commonly abbreviated as PITI.
In the early years of a 30-year mortgage, roughly 75-80% of your payment goes toward interest. Over time, the ratio shifts — by year 20, most of your payment reduces principal. This is why making extra payments early has such a dramatic impact on total cost.
The True Cost of Homeownership
The mortgage payment is not the full picture. Budget for these additional costs: property taxes (0.3%-2.5% of home value annually), homeowners insurance ($800-$4,000/year), HOA fees ($200-$700/month if applicable), maintenance (1-2% of home value per year), and utilities. A $400,000 home with a $2,200 mortgage payment can easily cost $3,000-$3,500/month all-in.
How to Get the Best Mortgage Rate
- Improve your credit score — Scores of 740+ typically get the best rates. Each 20-point improvement can save 0.25% on your rate. Pay down credit cards, don't open new accounts, and dispute any errors on your credit report.
- Save for a larger down payment — Putting 20% down eliminates PMI (saving $100-$300/month) and may qualify you for better rates. Even going from 5% to 10% down can save 0.25% on your rate.
- Shop multiple lenders — Compare at least 3-5 lenders. Rates vary by 0.25-0.50% between lenders for the same borrower. A 0.25% rate difference on a $400,000 loan saves $17,000 over 30 years.
- Consider discount points — Paying 1% of the loan amount upfront (one point) typically lowers your rate by 0.25%. Break-even is usually 4-5 years, making this worthwhile if you plan to stay long-term.
- Lock your rate strategically — Once you find a good rate, lock it before closing. Rate locks typically last 30-60 days. Some lenders offer float-down options if rates drop before closing.
Refinancing: When It Makes Sense
Refinancing replaces your current mortgage with a new one. It makes sense when rates drop 0.75-1% below your current rate, when you want to switch from a 30-year to a 15-year term, or when you need to remove PMI. Calculate your break-even point: divide closing costs ($2,000-$5,000) by monthly savings to find how many months until refinancing pays off.
First-Time Homebuyer Tips
- Get pre-approved before house hunting — it tells sellers you're serious and shows exactly what you can afford.
- Don't drain your savings for the down payment. Keep 3-6 months of expenses as an emergency fund after closing.
- Consider the total cost of the neighborhood: school quality, commute times, future development plans, and property tax trends.
- Home inspections are non-negotiable. A $400 inspection can save you from a $20,000 surprise repair.
- First-time buyer programs (FHA, state HMFA programs, employer-assisted housing) can reduce your upfront costs significantly.
Advanced Strategies
Bi-weekly payments: Paying half your monthly mortgage every two weeks results in 26 half-payments per year (13 full payments instead of 12). This alone can shorten a 30-year loan by 4-6 years and save tens of thousands in interest.
Extra principal payments: Even $100/month extra on a $400,000 loan at 6.75% saves over $60,000 in interest and pays off the loan 5 years early. Use our calculator above to model different scenarios.
Recasting vs. refinancing: If you receive a lump sum (bonus, inheritance), you can ask your lender to recast the loan — they apply the lump sum to principal and recalculate payments. This avoids refinancing fees while lowering your monthly payment.
Written by Finance Experts · Last updated September 2026
Get Pre-Qualified in Minutes
Talk to a Licensed Financial Advisor
Get personalized advice from a fiduciary advisor.
Historical Mortgage Rates (2018–2026)
Mortgage rates have fluctuated dramatically in recent years, from historic lows during COVID to post-pandemic highs. Understanding rate trends helps you time your mortgage decision.
Source: Freddie Mac Primary Mortgage Market Survey (PMMS) via FRED. Rates are annual averages.
Federal Funds Rate History (2018–2026)
Related Calculators
Written by Finance Experts · Last updated September 2026
This calculator is for informational purposes only. Consult a licensed mortgage professional for personalized advice.
Frequently Asked Questions
How is my monthly mortgage payment calculated?
Your monthly payment includes principal and interest (P&I), property taxes, homeowners insurance, PMI (if down payment is under 20%), and HOA fees. The P&I portion uses the standard amortization formula: loan amount multiplied by the monthly rate, adjusted for the total number of payments.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) protects the lender if you default. It is required when your down payment is less than 20% of the home price. You can request PMI removal once you reach 20% equity, and it is automatically removed at 22% equity.
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage offers lower monthly payments and more flexibility. A 15-year mortgage has a lower interest rate (typically 0.5-0.75% less) and saves tens of thousands in total interest, but the monthly payment is roughly 50% higher. Choose based on what you can comfortably afford.
How much down payment do I need?
Conventional loans typically require 3-20% down. FHA loans allow as little as 3.5%. Putting 20% down eliminates PMI, saving $100-$300 per month. A larger down payment also means a smaller loan and less total interest paid.
Does this calculator include taxes and insurance?
Yes. This calculator includes property taxes (based on state averages or your custom rate), homeowners insurance, PMI, and HOA fees in the total monthly payment estimate. You can enter your own values in Advanced Options or select a state for automatic estimates.
How much house can I afford on a $100,000 salary?
Using the 28/36 rule, you can afford a housing payment of about $2,333/month (28% of gross). At current rates, that translates to roughly a $350,000-$400,000 home with 20% down. However, consider your other debts, expenses, and savings goals for a more accurate picture.
What credit score do I need for a mortgage?
Conventional loans require 620+ (740+ for best rates). FHA loans accept 580+ with 3.5% down or 500-579 with 10% down. VA loans have no official minimum but most lenders want 620+. Higher scores save you money — a 20-point improvement can lower your rate by 0.25%.
How do bi-weekly mortgage payments work?
Instead of 12 monthly payments, you make 26 half-payments (one every two weeks). This results in 13 full payments per year instead of 12. On a $400,000 loan at 6.75%, this alone shortens a 30-year loan by about 5 years and saves over $60,000 in interest.
Should I refinance my mortgage?
Refinancing typically makes sense if your new rate is at least 0.75-1% lower than your current rate, and you plan to stay in the home past the break-even point. Divide your closing costs ($2,000-$5,000) by your monthly savings to find your break-even timeline.
What are closing costs on a mortgage?
Closing costs typically range from 2-5% of the loan amount. On a $300,000 loan, expect $6,000-$15,000 in closing costs. These include origination fees, appraisal, title insurance, attorney fees, and prepaid items like property taxes and insurance. Some lenders offer no-closing-cost mortgages with slightly higher rates.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the loan amount. APR includes the interest rate plus additional costs like origination fees, points, and mortgage insurance. Always compare APRs when shopping for loans — it gives you a more complete picture of total cost.
Can I get a mortgage with student loan debt?
Yes, but your student loan payments affect your DTI ratio. FHA counts 0.5% of your student loan balance (or the actual payment if higher) toward your DTI. Conventional loans may use the actual payment. Paying down student loans or choosing an income-driven repayment plan can improve your mortgage eligibility.
Data Sources & Citations
- OfficialInternal Revenue Service (IRS)
Disclaimer: Calculators and tools on this site are for informational purposes only and do not constitute financial, tax, legal, medical, or investment advice. Results are estimates and may not reflect actual rates or terms. Consult a qualified professional before making decisions. Privacy Policy
How This Calculator Works
- ✓ Fully online
- ✓ Fast approval
- ✓ Wide product range
- ✗ Higher rates for low credit
- ✓ No origination fees
- ✓ Pre-approval in 3 min
- ✓ AI-powered
- ✗ Limited jumbo loans
- ✓ Compare 5+ lenders
- ✓ Marketplace model
- ✓ No credit impact
- ✗ Lead gen model
- ✓ Rate comparison
- ✓ Expert advice
- ✓ Editorial content
- ✗ Limited direct lending
Get Pre-Qualified in 2 Minutes
Compare rates from multiple lenders with no credit impact.
Current Mortgage Rates
| Type | Rate | Change | Note |
|---|---|---|---|
| 30-Year Fixed Lowest | 6.45% | ↓ 0.02% | Most popular |
| 15-Year Fixed | 5.75% | ↓ 0.03% | Faster payoff |
| 5/1 ARM | 5.95% | — | Rate adjusts after 5yr |
| FHA 30-Year | 6.15% | ↓ 0.01% | 3.5% down |
| VA 30-Year | 5.95% | ↓ 0.02% | No down payment |
Rates as of October 01, 2026. Actual rates vary by lender and borrower profile.
RELATED WORKFLOW