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How to Use the Mortgage Calculator
Enter your home price, down payment, interest rate, and loan term. The calculator instantly shows your monthly principal and interest payment, plus property tax and insurance if you include them. This gives you the true "PITI" payment lenders use to qualify you.
How Mortgage Payments Are Calculated
Your principal and interest payment uses the standard amortization formula: M = P[r(1+r)ⁿ] / [(1+r)ⁿ-1] where P is your loan amount, r is your monthly interest rate (annual rate ÷ 12), and n is your total number of payments.
Frequently Asked Questions
How much house can I afford in 2025?
A widely-used guideline is the 28% rule: your monthly mortgage payment (PITI) should not exceed 28% of your gross monthly income. With a $100,000 annual income (~$8,333/month), that means a max payment of about $2,333/month.
What is a good mortgage rate right now?
Mortgage rates fluctuate daily. In 2025, 30-year fixed rates have generally ranged between 6% and 7.5% for borrowers with good credit (700+ score). The rate you receive depends on your credit score, down payment, loan type, and lender.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has higher monthly payments but you pay dramatically less total interest and build equity faster. A 30-year mortgage has lower payments, giving you more monthly cash flow. Use the term selector above to compare both.
What is PMI and can I avoid it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5%–1.5% of the loan amount per year. You can avoid it by putting 20% down, or request cancellation once you reach 20% equity.