Mortgage Calculator
This mortgage recast calculator, also known as a recast mortgage calculator, helps you instantly calculate your new monthly payment after a lump-sum payment. No login required.
Optional — add taxes, insurance, HOA, and PMI for a complete PITI estimate. PMI applies when down payment is below 20%.
Important
This calculator provides estimated monthly payments for planning only. Actual lender quotes, escrow amounts, and PMI rules vary. Always confirm with your lender's official Loan Estimate before committing.
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Enter your home price, down payment, rate, and term — then click “Calculate mortgage payment”.
Pro tips for mortgage planning
- Compare at least three lender quotes — even a 0.25% rate difference saves thousands over 30 years.
- A 20% down payment eliminates PMI and often unlocks better rates.
- Keep housing costs below 28% of gross income for comfortable affordability.
- Extra principal payments reduce total interest — confirm your loan has no prepayment penalty.
- Request a Loan Estimate from your lender to see exact closing costs before you buy.
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What is a mortgage calculator?
A mortgage calculator estimates your monthly home loan payment from your loan amount, interest rate, loan term, and optional costs like property taxes, homeowners insurance, HOA fees, and PMI.
Use it before you talk to a lender to understand PITI (principal, interest, taxes, and insurance) and see how a larger down payment or shorter term changes your total cost.
How to use this calculator
Step 1 — Enter home price
Type the purchase price of the property you are buying or refinancing.
Step 2 — Set down payment
Enter the dollar amount or percentage down. Most conventional loans allow 5–20% down; 20% or more removes PMI on many loans.
Step 3 — Choose loan term and rate
Select 10, 15, 20, or 30 years and enter your annual interest rate (APR from your lender quote).
Step 4 — Add optional costs
Include annual property tax, home insurance, monthly HOA, PMI rate, and any extra monthly payment for a complete estimate.
Step 5 — Calculate
Click Calculate mortgage payment to see your total monthly payment, cost breakdown, lifetime interest, and a year-by-year amortization summary.
What makes up your monthly payment?
Principal & interest (P&I)
Principal pays down your loan balance; interest is the lender's charge on the remaining balance. Early payments are mostly interest; over time more goes to principal (amortization).
Property taxes
Often collected monthly through escrow and paid to your local tax authority. Rates vary widely by location — typically 0.3% to 2.5% of assessed value per year.
Homeowners insurance
Required by most lenders. Premium depends on property value, location, and coverage level.
PMI (private mortgage insurance)
Usually required when your down payment is below 20%. Typical cost: 0.5% to 1.5% of the loan amount per year. You can often cancel PMI once LTV reaches 80%.
HOA fees
Monthly fees for condos, townhomes, or planned communities — not part of your loan but part of your housing budget.
15-year vs 30-year mortgage
Example on a $250,000 loan at 6.5%:
| 15-year | 30-year | |
|---|---|---|
| Monthly P&I | ~$2,177 | ~$1,580 |
| Total interest | ~$141,900 | ~$318,900 |
| Best for | Lower total cost | Lower monthly payment |
A 30-year loan improves cash flow; a 15-year loan builds equity faster and saves substantially on interest.
Fixed-rate vs adjustable-rate (ARM)
| Feature | Fixed-rate | ARM |
|---|---|---|
| Rate | Same for full term | Adjusts after initial fixed period |
| Payment | Stable | Can rise or fall |
| Best for | Long-term owners | Short-term ownership (5–7 years) |
Most buyers choose fixed-rate mortgages for payment predictability.
How extra payments save money
Every extra dollar toward principal lowers your balance, so less interest accrues each month.
- +$100–300/month on a 30-year loan can cut 4–7 years and save tens of thousands in interest
- Biweekly payments (26 half-payments per year) equal one extra full payment annually
- Lump-sum windfalls applied to principal create immediate, permanent interest savings
Confirm your loan has no prepayment penalty before paying extra.
How much mortgage can you afford?
28% rule: Housing costs (PITI + HOA) should stay at or below 28% of gross monthly income.
36% rule (DTI): Total monthly debt — mortgage plus car loans, student loans, cards — should stay below 36% of gross income (many lenders allow up to 43% for qualified borrowers).
Closing costs to budget for
Budget 2% to 5% of the purchase price for one-time closing costs:
- Loan origination and underwriting fees
- Appraisal and home inspection
- Title search and title insurance
- Attorney or notary fees
- Prepaid interest and escrow setup
Request a Loan Estimate from your lender within three business days of applying.
When to refinance
Refinancing replaces your loan with a new one — often for a lower rate or shorter term.
Break-even rule: Divide refinancing costs by monthly savings. If you will stay in the home past that point, refinancing may pay off.
Example: $5,000 closing costs ÷ $200/month savings = 25 months to break even.
Frequently Asked Questions
How accurate is an online mortgage calculator?
Principal and interest math is precise for the inputs you provide. Taxes and insurance are estimates unless you enter actual amounts. Always confirm with your lender's Loan Estimate.
What credit score do I need for a mortgage?
Most conventional lenders require 620–640 minimum. Scores 740+ typically qualify for the best rates.
What is the difference between interest rate and APR?
Interest rate is the cost of borrowing the principal. APR includes the rate plus lender fees and points — use APR to compare lenders.
How does a down payment affect my payment?
A larger down payment lowers your loan amount and monthly P&I. 20% down often eliminates PMI and can improve your rate.
Can I use this calculator for refinancing?
Yes. Enter your remaining balance as home price, set down payment to $0, and enter the new rate and term you are considering.
What is an amortization schedule?
A table of every payment showing principal vs interest and remaining balance. It helps you plan extra payments and refinancing timing.
How does PMI work and when can I remove it?
PMI protects the lender when equity is below 20%. Request cancellation at 80% LTV; many lenders auto-cancel at 78%.
Should I choose a fixed or adjustable rate?
Choose fixed for long-term stability. Choose ARM only if you plan to sell or refinance within the initial fixed period.
How do extra mortgage payments save money?
Extra payments reduce principal immediately, so less interest accrues going forward — compounding savings over the loan life.
How do I calculate how much house I can afford?
Multiply gross monthly income by 0.28 for max housing payment, then work backward with this calculator — or use our House Affordability Calculator for a fuller picture.
Summary
Enter your home price, down payment, rate, and term to estimate your full monthly payment and total loan cost. Compare scenarios, test extra payments, and confirm final numbers with a licensed mortgage professional before you buy or refinance.
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