🏠 Smart Mortgage Calculator

How is my monthly mortgage payment calculated?

Your monthly payment = Principal & Interest + Property Tax/12 + Home Insurance/12 + HOA fees. The P&I portion uses: P × [r(1+r)^n] / [(1+r)^n – 1], where P = loan amount, r = monthly rate, n = total payments.

What is PMI and how do I avoid it?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5%–1% of the loan annually. Put down at least 20% to avoid it entirely.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage has higher monthly payments but saves significantly on total interest. A 30-year offers lower payments and more cash-flow flexibility. Use the toggle above to compare instantly.

How much house can I afford?

The standard guideline is that total housing costs should not exceed 28% of gross monthly income. Check the Affordability insight card above for a personalized income estimate.

What is an amortization schedule?

An amortization schedule shows how each payment splits between principal and interest over the loan’s life. Early payments are mostly interest; over time more goes toward principal.