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MORTGAGE calculator

What's your home worth?

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See what you can afford and find homes within your budget.

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The amount you plan to offer for a home

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Cash you pay when you close

Affects interest rates. 30- or 15- year loans are standard.

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Typically 0.25% of home value per year.

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Homeowners association dues.

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Principal and interest:

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HOA Dues:

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What To Expect From A Mortgage Refinance Calculator

Can you afford a monthly mortgage payment? And if so, how much? Many homebuyers overlook some key elements that affect their monthly payment amounts. Our mortgage calculator accounts for all the expenses involved. Explore how different factors influence your mortgage payment. Discover what you might be missing in your current calculations and what might potentially save you money! ez Home Search's mortgage calculator estimates your monthly mortgage payment by including several crucial components. These include principal and interest, down payment, loan term, homeowners’ insurance, property taxes, and HOA fees. Our suite of comprehensive financial calculators compares various home loan scenarios. It clarifies how even the smallest change impacts your budget, ensuring you leave no stone unturned in your financial planning.

7 Steps to Calculate Your Payments Using a Mortgage Calculator

Here's how to use our loan calculator to easily estimate your monthly payments:

  1. Enter Your Home Price. In the Home Price field, input the purchase price of the home you’re buying. If you're refinancing, enter the current value of your home and not the principal balance.
  2. Enter Your Down Payment. In the Down Payment field, input your down payment amount. You can enter this as a dollar amount or as a percentage of the home price. The calculator will automatically compute the other value.
  3. Select Your Loan Type. Choose the loan term from the available options, such as a 30-year or 15-year mortgage repayment term. This affects how long you'll be paying off your mortgage and the amount of each payment.
  4. Enter Your Mortgage Interest Rate. In the Interest Rate field, input the rate you expect to pay. This can be adjusted to reflect the current rates or your specific rate if you have already been quoted one.
  5. Input Property Tax. Enter the annual property tax amount. This can typically be found on the property listing or through your local tax assessor's office.
  6. Add Homeowners Insurance. Input the annual cost of homeowners insurance. This is necessary to protect your investment. Mortgage lenders typically require a policy.
  7. Include Monthly HOA Dues. If applicable, enter the monthly homeowners association fees (HOA) for your property. These fees cover the cost of maintaining common areas and amenities in your neighborhood or building.

Our mortgage payment calculator lets you see the monthly payment breakdown, including principal, interest, taxes, insurance, and HOA fees. If you’re still in the early phases, you can play around with price ranges to see what your mortgage payment might be for different scenarios. This transparent approach ensures you make the best financial decision. This is a small part of what ez Home Search provides to help you in your journey to homeownership. Create a free account to get personalized alerts and stay ahead with instant updates on new listings.

Typical Costs Included in a Mortgage Payment

Understanding the typical costs included in a mortgage payment can help you avoid surprises when budgeting. Your monthly mortgage payment consists of:

  • Principal: This is the amount you borrow from the lender to purchase your home. Each mortgage payment you make reduces the principal balance over time, gradually building your home equity. That’s in addition to any increase in the property’s value.
  • Interest: Interest is what you pay to the lender for borrowing money. It's expressed as an annual percentage rate (APR). It is a significant part of your monthly mortgage payment, especially in the loan’s early years.
  • Property Taxes: Local government authorities assess an annual property tax to help pay for infrastructure, schools, and essential services. If you have an escrow account, you’ll pay about one-twelfth of your annual property tax bill with each monthly mortgage payment. Your lender or loan servicer will then pay the tax bill on your behalf when it’s due.
  • Homeowners Insurance: This insurance policy protects your home and personal property against damage and loss from events like fire, theft, and natural disasters. If you live in a flood or other disaster-prone area, additional coverage may be required. Like property taxes, you typically pay one-twelfth of your annual homeowners insurance premium each month into an escrow account.
  • Mortgage Insurance: If your down payment is less than 20% of the home’s purchase price, you’ll likely need private mortgage insurance (PMI) or mortgage insurance premium (MIP) for FHA loans. This insurance protects the lender in case you default on the loan. It’s included in your monthly mortgage payment. For conventional loans, this can be canceled once you reach 20% equity in your home, but FHA loans might require it for the life of the loan.
  • Homeowners Association (HOA) Fees: If your home is part of a homeowners association, you may need to pay monthly or annual HOA fees. These fees cover the maintenance of common areas, amenities, and sometimes additional services like landscaping or security. While not always included in your mortgage payment, it's important to budget for these. They are part of your required housing cost.

You can use our mortgage calculator more effectively to see how each of these components influences your overall payment and plan your finances accordingly. Keep in mind property taxes, homeowner’s insurance, and HOA fees are highly likely to go up each year. Changes in interest depend on your mortgage type.


How This Mortgage Calculator Helps You

Knowing your financial limits is crucial to making informed decisions during the home-buying process. ez Home Search's mortgage calculator provides confidential guidance. When you’re ready, we can connect you with a local, vetted partner in your area to dive further into your questions.

Here’s how our mortgage calculator can assist you:

  • Determine Affordability: Use our calculator to get a clearer picture of your monthly mortgage payments factoring in all the puzzle pieces: principal, interest, homeowners insurance, and property taxes. This helps determine if your homebuying budget aligns with your personal financial situation. That way, you don’t overextend yourself.
  • Compare Loan Terms: Decide on the best mortgage term for your needs by comparing the monthly payments and total interest between 15-year fixed-rate mortgage and 30-year loans. Shorter-term loans have higher monthly payments, but they save you money on interest over the life of the loan.
  • Evaluate Down Payment Options: Experiment with different down payment scenarios to see how they affect your monthly payments and overall loan amount. This helps find an optimal down payment that balances your monthly budget and long-term financial goals.
  • Plan for Extra Payments: See how making additional payments can shorten your loan term and reduce the total interest paid. With the advice of financial experts, strategize to pay off your mortgage early, freeing up your finances for other investments. Even a one-time payment each year makes a difference in paying less interest and paying off the original loan earlier.
  • Understand Mortgage Insurance: Use the amortization schedule feature to find when you’ll reach 20% equity. This allows you to request the removal of private mortgage insurance (PMI) on a conventional loan. No PMI can reduce your monthly payments and overall cost.
  • Adjust for Adjustable-Rate Mortgages (ARMs): The loan calculator reveals how future interest rate changes on an adjustable-rate loan could impact your monthly loan payments. This helps you prepare for potential increases and decide if an ARM fits your financial plan. Coming soon.
  • Avoid Overbuying: Input your details to prevent yourself from buying more home than you can afford. This calculator provides a reality check by factoring in all costs. Make a wise, informed investment without straining your finances.

By using ez Home Search's mortgage calculator, confidently navigate the complexities of home financing. Make decisions that align with your financial well-being to build wealth. Create a free account for personalized guidance. Get updated on the latest listings in your area.

How This Mortgage Calculator Helps You

Identifying how much house you can afford is a crucial step in the home-buying process. To start, consider the 28/36 rule. The guideline suggests you allocate no more than 28% of your gross income to housing costs and no more than 36% to total debt, including housing.

Here are some examples:

Annual Gross Income Monthly Gross Income Maximum Housing Costs
$60,000 $5,000 $1,400
$100,000 $8,333 $2,333
$200,000 $16,667 $4,667
$400,000 $33,333 $9,333


While the 28/36 rule is a good starting point, it’s just a guideline. Personal financial goals, such as saving for retirement or emergencies, and existing debts (e.g. auto loans, credit card debt) should also weigh into your decision while you think about this income ratio. We want your homeownership journey to be easy. Overestimating your budget could impact your ability to meet other financial commitments. By evaluating your income, monthly debt payments, and long-term financial goals, you can determine a realistic budget for your home purchase. Using ez Home Search's mortgage payment calculators, you’ll see how different scenarios fit within your financial plan. This tool sets you up for financial stability and success because you’ll find the best combination of purchase price, loan terms, and down payment for you. Use our affordability calculator to take a different approach to figuring out how much home you can afford.

Frequently Asked Questions and Answers About Mortgages

A mortgage is a loan used to purchase a home. It consists of the mortgage principal (the amount you borrow) and the interest (the cost of borrowing). Additionally, your monthly mortgage payment may include the cost of property taxes, homeowners insurance, and, if applicable, private mortgage insurance (PMI).
The most common type of loan includes fixed-rate mortgages. After that, you’ll hear about adjustable-rate mortgages (ARMs), FHA loans, VA loans, and USDA loans. Fixed-rate mortgages have a constant interest rate, while ARMs have rates that can change over time. FHA, VA, and USDA loans are government-backed options with specific eligibility requirements.
The right type of mortgage depends on your financial situation, long-term goals, and eligibility. Fixed-rate mortgages offer the stability of a consistent payment schedule. ARMs might be beneficial if you plan to move or refinance before the rate adjusts. Government-backed loans like FHA, VA, and USDA loans can be good options if you meet the criteria. Consult with our vetted local partners to determine the best mortgage for your needs. They’ll get you the best deal they can with your credit history, whether you have an excellent credit profile and credit rating or are still working on it. We all want you to maximize the benefits of homeownership from your primary residence.
A mortgage works by allowing you to borrow money from a lender to purchase a home. You agree to repay the loan over a specified period, usually 15 or 30 years, through monthly regular payments that include principal and interest. Additional costs like property taxes, homeowners insurance, and PMI may also be included in your monthly payment. Most lenders use a loan amortization schedule where the monthly principal payment starts small and increases over time. Your statement each month will show the remaining loan balance.
Yes, mortgages are typically paid monthly. Each payment includes a portion of the principal and interest, and may also cover property taxes, homeowners insurance, and PMI if applicable.
Yes, you can pay off a mortgage balance early. Making extra mortgage payments on the principal can reduce the total interest paid over the life of the loan and shorten the loan term. While less common today, some mortgage details may have prepayment penalties or restrictions. For example, you might be limited to making a single prepayment each year. Check with your lender and ask about prepayment penalties when choosing your mortgage option.
Finding the lowest mortgage rates depends on various factors, such as your credit score, loan type, loan term, and down payment. Even property type and local real estate prices can play a role in the cost of borrowing. Average rates can also vary based on the local economic climate. By using ez Home Search's tools and consulting with our vetted local partners, you can get personalized guidance tailored to your specific situation. This approach ensures you find the best rates and overall terms for your mortgage, helping you achieve the best financial outcome.
When you take out a mortgage, you own the house, but the lender holds a lien against it. This means the lender has a legal claim to the property until the mortgage is fully paid off. If you fail to make payments, the mortgage lender could foreclose on the house.
Paying your mortgage every two weeks instead of monthly can help pay off the loan faster and reduce the total interest paid. This method results in 26 half-payments, or 13 full payments, each year, effectively making one extra payment annually. This can shorten the loan term and save money over time. Check with your lender for the specifics on this repayment plan.
The 28/36 rule is a guideline for how much of your monthly income should go towards housing and total debt. It suggests that no more than 28% of your gross income should be spent on housing costs, and no more than 36% on total debt, including housing, car loans, and credit cards.
The 3/7/3 rule refers to specific timing requirements in the mortgage process, particularly for disclosure delivery under the TILA-RESPA Integrated Disclosure (TRID) rule. The initial disclosure must be delivered within 3 days of the application. The earliest a loan can close is 7 days after the initial disclosure. A revised disclosure must be provided 3 days before closing if there are significant changes.
The minimum credit score needed to buy a house varies by loan type. Conventional loans typically require a score of at least 620. FHA loans may be available with scores as low as 580. VA and USDA loans don’t have a set minimum but generally prefer scores above 620. But what if your credit score is lower? Does that mean you can't buy a home? Our local vetted partners at ez Home Search can provide personalized advice and options tailored to your situation. They can help you find the best steps to take based on your credit score and the area where you want to buy a home.
Loan origination fees are charges assessed by a lender to process and underwrite a mortgage loan. These processing fees cover the upfront costs associated with evaluating the borrower's creditworthiness, verifying income and employment, and preparing the loan documents. They include appraisal fees and credit check fees. Lender fees typically range from 0.5% to 1% of the loan amount and are usually paid as part of closing costs.
Loan officers, also known as mortgage loan officers or lending officers, help potential homebuyers obtain loans to purchase real estate or refinance existing mortgages. Their responsibilities include providing guidance on loan options and terms. They recommend loan programs based on the borrower's credit and financial situation. For estimation purposes, they can work out a prequalification letter. They communicate with borrowers throughout the loan application and underwriting process to provide updates and address concerns. They build relationships with real estate agents, home appraisers, and escrow agents to help close home sales. However, loan officers are not financial advisors. For any tax advice or financial questions, ask a certified professional.
Yes! Even with a mortgage, you can sell your home. Hopefully, your purchase price will be above the loan balance. Any sale proceeds first go to paying off the current loan. Any remaining amount will pay off other debt obligations, closing fees, or real estate agent commissions. Then, if there are still proceeds, the homeowner receives the remaining profit.
A 15-year and a 30-year fixed-rate mortgage are two common types of home loans. They differ primarily in their product terms and monthly payments. Under a 15-Year Fixed-Rate Mortgage, the term is 15 years, meaning you will make 180 monthly payments to pay off the entire loan. Monthly payments are generally higher than those of a 30-year term because you are paying off the loan in half the time. The exact amount of your monthly payment will depend on the loan amount, interest rate, and other factors. Interest rates for 15-year mortgages are typically lower than those for 30-year mortgages. This is because you are borrowing the money for a shorter period, so it’s a lower risk for the lender. With a 30-Year Fixed-Rate Mortgage, the time frame to payoff is 360 months. Monthly minimum payments are generally lower than those of a 15-year mortgage because you are spreading the loan payments over a longer period of time. Interest rates for 30-year loans are typically higher than those for 15-year loans because you are borrowing the money for a longer period. You will pay more total interest over the life of the loan compared to a 15-year mortgage. This is because the loan time frame is longer and interest rates are usually higher.
Even on a fixed-rate loan, you will see your actual costs change. That’s because of the costs within mortgage payments. You’ll pay principal and interest, but also for taxes and insurance. Your annual property taxes change every year. Homeowner’s insurance and homeowner association dues can also increase. Those of those are wrapped into your monthly mortgage payment. That’s why even if you do not have adjustable mortgage payments, what you pay each month can change. If you do opt for an adjustable-rate mortgage, your monthly rate can change based on the loan terms and average interest rate at that time.
Mortgage points are where you opt to pre-pay some of the interest ahead of time. Also known as discount points or loan origination points, each point typically costs 1% of the loan amount and can reduce the interest rate by 0.25% to 0.5%. By paying points, you can lower the overall interest rate of the home loan, reducing the long-term borrowing cost. If interest rates are low, mortgage points may not be as cost-effective.
Mortgage rates fluctuate based on current market conditions. You’ll hear a lot of reporting on the Federal Reserve base rate, and how when it’s high, interest rates are high. While the Fed rate does influence the mortgage market, a better benchmark is the 10-Year Treasury Yield. Actual rates tend to follow what this index does. But a combination of factors also influences rates: consumer confidence, mortgage demand, and inflation. Then there’s your individual profile: credit history, savings, debt-to-income ratio, sale price, household income, and more. You can use the national average for illustrative purposes when using financial calculators. But until your actual rate is locked in after applying for a mortgage, it could change day-to-day.
The financial institution that approves your loan and distributes the money may not be the one to who you make payments. Some mortgage lenders working with conventional loans or secured loans package them into a portfolio for sale on the securities market. Institutions like Fannie Mae or Freddie Mac buy the loan. Mortgage servicing is the process of managing and administering a mortgage loan after it has been originated and funded. The servicer collects monthly payments from the borrower, pays taxes and insurance, and provides customer service to the borrower. Your servicer is there to help you with any questions or concerns you have about your mortgage.

You can use our mortgage calculator more effectively to see how each of these components influences your overall payment and plan your finances accordingly. Keep in mind property taxes, homeowner’s insurance, and HOA fees are highly likely to go up each year. Changes in interest depend on your mortgage type.