Advanced Mortgage Calculator

The total amount borrowed to purchase the home, calculated by subtracting any down payment from the home’s purchase price.

This is the upfront payment, usually expressed as a percentage of the total price. A larger down payment often results in better loan terms. Most lenders expect 20% or more, but first-time buyers can sometimes pay as little as 3%.

The time it will take to repay the loan, often 15, 20, or 30 years. Shorter terms typically result in a lower interest rate and a quicker payoff.

The cost of borrowing money, which can be either fixed or adjustable. Fixed-rate mortgages (FRM) offer a constant interest rate throughout the loan, while adjustable-rate mortgages (ARM) may change after an initial period. Use our adjustable rate mortgage calculator to estimate the effect of potential rate changes.

If your down payment is less than 20%, you will likely be required to pay PMI. The Mortgage Calculator with PMI option helps you include these additional costs in your estimates.

Property Taxes: Taxes levied by local governments, typically about 1.1% of the property’s value in the U.S. These costs tend to increase annually due to inflation. You can include them in the property taxes and mortgage calculator for a full estimate of your monthly costs. Home Insurance: Protects the home from unexpected damage. The cost varies by property location and value. Our mortgage interest calculator can factor in these costs for an accurate financial forecast. HOA Fees: Some properties come with homeowners’ association fees, often less than 1% of the property’s value. Condominiums and townhomes often require these fees. Private Mortgage Insurance (PMI): Required when the down payment is less than 20%. This helps protect the lender in case of borrower default.

Closing Costs: Fees paid when closing on a home, such as attorney fees, appraisal fees, and title charges. These costs usually range from 2% to 5% of the home’s purchase price. Renovations: Optional upgrades like kitchen updates or new flooring can add to your total costs, but they aren't factored into the monthly mortgage payments. Miscellaneous Costs: This includes moving expenses, furniture, and home repairs after purchase.

Extra Payments: By making extra payments on top of your monthly mortgage, you can reduce the principal faster, resulting in lower interest costs over time. Biweekly Payments: Instead of paying monthly, make half payments every two weeks. This results in an extra month of payments each year, helping you pay off the loan more quickly. Our biweekly mortgage payment calculator shows how this approach works. Refinancing: Refinancing your loan for a lower interest rate or shorter term can help you save money and pay off your mortgage quicker. The refinance mortgage calculator lets you estimate potential savings.

Advantages: Lower Interest Costs: Paying off your mortgage early reduces the interest you pay over the life of the loan. Faster Repayment: The loan will be paid off quicker, giving you financial freedom sooner. Personal Satisfaction: Many borrowers enjoy the emotional benefit of being debt-free. Disadvantages: Possible Prepayment Penalties: Some lenders impose fees for early repayment, which can reduce the benefits. Opportunity Cost: If mortgage rates are low, using extra funds to pay off the mortgage might not be the best financial decision, especially if you could earn a higher return elsewhere. Capital Lock-In: Money spent on early mortgage repayment might be needed for other expenses. Loss of Tax Deductions: Mortgage interest is tax-deductible, but paying off the mortgage early reduces the amount you can deduct.