Mortgage Calculator
Calculate your monthly mortgage payment, view amortization schedules, and understand the breakdown of principal, interest, taxes, and insurance with our free mortgage calculator.
Category: Financial
Monthly Payment
$1616.04
Loan amount: $240,000
- Principal & Interest
- Property Tax
- Home Insurance
Principal & Interest
$1216.04
Property Tax
$300.00
Home Insurance
$100.00
Amortization Schedule
- Principal
- Interest
- Remaining Balance
Frequently Asked Questions
How is a mortgage payment calculated?
A mortgage payment is calculated using the loan amount, interest rate, and loan term. The formula used is M = P[r(1+r)^n]/[(1+r)^n-1], where M is the monthly payment, P is the principal (loan amount), r is the monthly interest rate, and n is the number of payments.
What factors affect my monthly mortgage payment?
Your monthly mortgage payment is affected by the home price, down payment amount, loan term, interest rate, property taxes, homeowners insurance, private mortgage insurance (PMI), and possibly HOA fees.
How does the down payment affect my mortgage?
A larger down payment reduces your loan amount, which lowers your monthly payments and total interest paid over the life of the loan. It may also eliminate the need for private mortgage insurance (PMI), which is typically required for down payments less than 20% of the home's value.
How do property taxes and insurance affect my mortgage payment?
Property taxes and homeowners insurance are often included in your monthly mortgage payment through an escrow account. These costs are added to your principal and interest payment to form your total monthly payment, sometimes referred to as PITI (Principal, Interest, Taxes, and Insurance).