Calculate your monthly mortgage payment

The home price is the agreed purchase price, while the down payment is cash you put toward that price. The loan principal is their difference. A $450,000 home with $90,000 down creates a $360,000 mortgage before financing any lender fees.

Enter a fixed nominal annual interest rate and a repayment term in whole years. The optional monthly housing costs field is for your own estimate of property tax, homeowners insurance, mortgage insurance or HOA dues. These costs are added for budgeting but are not included in loan interest or amortization.

For an amortizing loan the monthly principal-and-interest payment remains level at a fixed rate, but the interest part decreases and the principal part increases as the balance falls. Total interest is the monthly principal-and-interest payment multiplied by the number of payments minus the original borrowed principal.

Your actual payment to a servicer may include escrow for property tax and insurance. Escrow can change; HOA dues may be billed separately. The 'including extras' figure is not a guaranteed all-in homeownership cost or a lender-determined debt-to-income calculation.

Keep property price, down payment and interest rate the same. Enter 30 years first, note the monthly payment and total interest, then try 15 years. Shorter terms generally produce higher required monthly repayments but lower lifetime interest under equal rates.

Do not assume a lender offers exactly the same rate for both terms. Closing costs, points, PMI, refinance fees and eligibility also affect the decision. If you are considering prepayments, try the separate mortgage extra-payment calculator after estimating your starting loan.

Loan-to-value (LTV) divides mortgage principal by the home's price or valuation in this simple illustration. A 20% down payment corresponds to 80% LTV. Lenders can use appraised values and underwriting rules that differ from this arithmetic.

APR is not the same as the quoted nominal interest rate because disclosure APR can reflect certain loan charges. This tool does not calculate escrow changes, tax deductions, adjustable rates, discount points, cash-to-close or closing-cost credits. Compare actual Loan Estimates for a fair lender comparison.