How much will my mortgage payments be?
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This calculator calculates your monthly mortgage payment for a given loan amount, interest rate and loan term.


Payments are shown for principal and interest (P & I) and combined (PITI) payments. Combined payments include principal, interest, property taxes, and homeowner's insurance, as well as mortgage insurance where applicable.

Mortgage lenders generally require that you obtain mortgage insurance for certain loan products if your down payment is less than 20% of the home purchase price. If you enter a loan amount that is more than 80% of the home value, the calculator estimates a monthly amount for mortgage insurance (MI). The amount displayed is an estimate only. The actual premium may be higher for larger loan amounts depending on the property location.
Balloon year:The balloon year is the year in which a balloon payment is made on a balloon mortgage. If you have a balloon mortgage, you will need to make a final payment on your mortgage loan that is much larger than the monthly payments you have made on the loan up until that time. A balloon payment occurs when a loan is amortized over a longer term than the loan rate. For example, with a "7/30" balloon loan, a balloon payment occurs at the end of seven years. If you borrowed $200,000 at 8%, amortized over 30 years, the monthly loan payment is $1,468. However, if a balloon payment occurs after seven years (or 84 monthly payments), you would owe $184,955. This is the unamortized loan balance.
Aggressive qualification estimate:Mortgage lenders may be more aggressive when the economy is strong due to the decreased risk of default. As a result, loan-qualification requirements may be loosened, which may make it easier to qualify for a loan.
Equity:Real estate: the residual ownership claim on a home's value. Equity equals the fair market value of a home, less any mortgage debt or other obligations.
Property insurance:Also called homeowner's insurance, property insurance protects the homeowner from weather-related damage, as well as potential liability from events that occur on the property. Lenders require homeowner's insurance coverage to protect the collateral that secures their loan. Standard homeowner's insurance policies usually do not cover catastrophic events such as earthquakes, tornadoes, hurricanes or floods. These kinds of events generally require a separate insurance policy or rider.
Home Value:The home's estimated market value, which is typically based on an appraisal. Professional home appraisers determine the market value based on recent sales data of comparable area homes. Some loan types may allow the home's value to be determined based on an automated valuation, or other means.
Refinancing:Refinancing involves obtaining a new mortgage loan to pay off your current mortgage loan. Refinancing may be a means of replacing high-interest debt with a loan that has a lower interest rate. It can also be done in order to switch from a fixed to variable rate, or vice versa, or to eliminate a balloon payment. A cash-out refinance involves using the available equity in your home to obtain a new mortgage with a loan amount greater than your current mortgage balance. You receive the additional amount after paying off your current loan.
Cost-benefit analysis:An analysis that subtracts the benefits of homeownership from the costs of homeownership to obtain a net cost. Included in costs are mortgage interest, discount points, closing costs, property taxes and homeowner's insurance, home maintenance costs, and any mortgage insurance (MI or PMI). Included in benefits are the tax savings on deductions for mortgage interest (including points) and property taxes, and an increase in equity that you receive either from repayment of the loan principal or from appreciation in the value of your home.
Break-even point:Refinancing your mortgage may make sense for your situation if you are able to pass the break-even point. At the break-even point, the difference in your monthly payment from refinancing equals the costs to originate the new refinance loan. A common break-even analysis is to calculate how long you must live in a home after you refinance in order to recover the closing costs you paid to refinance.
Mortgage insurance (MI or PMI):Mortgage Insurance is a type of insurance that a residential mortgage lender requires for certain loan products, or if your loan amount is greater than 80% of the home's value (loan-to-value). Mortgage insurance protects the lender from loss if the borrower fails to make loan payments as agreed. Federal law requires lenders to notify borrowers when their loan-to-value ratio drops below 80%.
Your tax rate:Your rate of tax at the federal level is graduated into tax brackets. The tax rates on higher amounts of taxable income are effectively higher than on lower amounts. Your taxable income is generally your total income less any adjustments and deductions. For more information on your actual tax rate, check the IRS site at www.irs.gov. For purposes of this calculator, as a general estimate you may choose to use 25% or 35% if you wish, with the understanding that your actual rate may vary considerably from this.
Settlement Charges:Also often referred to as closing costs, these are the customary costs required to originate and close your new refinance transaction. These costs generally vary by geographic location and are typically detailed to the borrower at the time the Good Faith Estimate (GFE) is provided. The GFE breaks the settlement charges into two main categories: Origination Charges and Other Settlement Services.
Mortgage interest:The mortgage interest tax deduction allows you to deduct from your adjusted gross income the mortgage interest expense you pay on mortgage and home equity debt - up to certain limits of debt. The deduction may lower your tax bill by reducing the amount of your income that is eligible to be taxed. To take the mortgage interest deduction, you must itemize your deductions using Schedule A of IRS Form 1040.
Selling costs of a home:Selling costs are comprised of the commission and ancillary fees that you pay when you sell your home. Commission is paid to the broker or agent that lists and sells your home. It is usually stated as a percentage of the sale price of your home. Commissions are often in the range of 3 to 6 percent of the sale price. Homes that are being sold by sellers who seek to sell directly in order to avoid a commission are called "for sale by owner," or FSBO, homes.
Underwriting:Underwriting means different things to different financial-services industries. For mortgage lenders, it is the process of evaluating a loan application to determine if the borrower(s) have the financial capacity to repay the loan and if the real estate to be used to secure the loan is acceptable.
Savings Interest Rate/Saving Rate:The savings interest rate is the yearly interest rate you earn on your savings. It is also used to calculate the opportunity cost of paying with cash.

Your saving rate is the percentage of income you save.

Property tax:Property taxes levied against homes and land are also called real estate taxes and are paid to the property state, local taxing authority or municipality. The amount you pay can generally be taken as an itemized deduction from your federal income taxes. Property taxes are often levied as a percentage of your home's assessed value. For example, if you pay 0.5% in property taxes of the assessed value, a home assessed at $250,000 would have a yearly property tax bill of $1,250.
P & I:P & I is an acronym for principal and interest, two of the main components of your monthly payment on a mortgage loan. The principal portion of your payment reduces your loan amount. The interest portion is your cost for the use of the principal for that month. If your mortgage loan payments also include property taxes and homeowner's insurance (and mortgage insurance, if applicable), the monthly payment amount is referred to as PITI.
Appreciation or Depreciation rate:Appreciation/depreciation rate is the yearly percentage rate that an asset increases/decreases in value. Examples: - A home that you paid $150,000 three years ago that is worth $199,650 today had an average appreciation rate of 10%. After the first year, the home was worth $165,000. After the second year, $181,500. And after the third year, just a little under $199,650. - A home that you paid $150,000 three years ago that is worth $109,350 today had an average depreciation rate of -10%. After the first year, the home was worth $135,000. After the second year, $121,500. And after the third year, $109,350.
Down payment:On a purchase loan, this amount usually represents a percentage of the purchase price that you are required to pay in cash (certified check), and cannot finance into the loan amount. The percentage of the purchase price that you are required to pay usually varies based on the loan product you selected. Government loans usually require lower down payments than conventional (non-government) loans. On a conventional loan, typically if your down payment is less than 20% you are also required to pay mortgage insurance, while government loans typically require either mortgage insurance for FHA loans or a funding fee for VA loans, but the amount you'll pay will be less for larger down payments and shorter loan terms.
Conservative qualification estimate:Mortgage lenders may be more conservative when the economy is weak due to the increased risk of default. As a result, loan-qualification requirements may be tightened, which may make it more difficult to qualify for a loan
Taxes and Insurance:This monthly amount is derived from the amounts you entered for your yearly property tax and property (homeowner's) insurance. An amount for taxes and insurance is generally included in your total monthly mortgage payment. Lenders will typically set up an escrow account for you at loan closing so that the annual taxes and insurance can be paid on your behalf. Depending on when these amounts are due, you may have to make several month's payments in advance at closing. Once your loan closes, the taxes and insurance amount collected each month is held in your escrow account to be paid when due.
PITI:PITI is an acronym for principal, interest, taxes, and insurance, the main components of your monthly payment on a mortgage loan. In addition to principal and interest, if your mortgage loan payments also include property taxes and homeowner's insurance (and mortgage insurance, if applicable), the monthly payment is referred to as PITI.
Tax savings:Tax savings (sometimes called a tax shield) is the amount you may save in taxes from a tax deduction or tax credit. Consult your tax advisor regarding tax deductions or tax credits.
Term:The term of your loan is the time limit within which the loan must be repaid. Mortgage loans are available in a variety of short or long loan terms.
Discount Points:Also often referred to as mortgage points and listed on a Good Faith Estimate as a charge for specific interest rate, discount point(s) may be paid to the lender to permanently reduce the loan's interest rate, and may be paid by the borrower or seller. One discount point is equal to 1% of the loan amount. Be aware, however, that one discount point will typically reduce the interest rate by less than 1%.
Housing ratio:Your housing ratio is one of the factors lenders use to evaluate your capacity to repay the loan. Your housing ratio is essentially the percentage of your gross income that goes toward your housing payment. The "housing ratio" is calculated by dividing your combined monthly mortgage payment (PITI) by your gross (pre-tax) monthly income. For example, a combined monthly mortgage payment of $750 divided by gross monthly income of $2,500 equals a housing ratio of 30%.
Today's Dollars (Present Value):To determine value in today's dollars, we need to calculate its present value, which is the value of a future payment or series of payments, discounted at an appropriate interest rate. For example, if you were given the choice of $100 today or a year from now, you would choose to take it now. You can invest or spend it. If you could invest it at 10%, you would have $110 a year from today ($110/$100). In other words, the present value of $110 a year from today is $100 if the discount rate is 10%. The discount rate should be at least equal to the current 10 year average, which has been about 3% a year. As a result, $103 a year from now has a present value of $100 ($103/1.03) in today's dollars.
Interest rate:The interest rate is the percentage you pay for the use of an amount of money for a specified. Your interest rate is based on many factors - including the current rate environment, your credit and financial record, and the specific features of your loan. On a mortgage loan, your interest rate may be fixed or adjustable. A fixed interest rate does not change during the life of the loan, allowing for predictable, consistent monthly payments. An adjustable interest rate may be fixed for a certain number of years, but then adjusts at regular intervals according to a market index, which may increase or decrease payments accordingly.
Mortgage Insurance premiums displayed are for illustrative purposes only and may be higher for larger loan amounts.
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