Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, property taxes, insurance, and PMI. See your full amortization schedule and total cost of homeownership.
$70,000
Monthly Payment Breakdown
Loan Summary
See how this mortgage fits your financial plan
Your estimated payment is $2,191/month. See how it fits alongside your income, savings, investments, and other expenses over time.
Try the Full SimulatorHow Mortgage Payments Are Calculated
A mortgage payment is determined by an amortization formula that distributes your repayment evenly across the loan term. Each month, a portion of your payment goes toward interest (calculated on the remaining balance) and a portion goes toward reducing the principal. Early in the loan, most of your payment is interest. Over time, the balance shifts so that more goes toward principal.
The formula for monthly principal and interest is: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. Your total monthly housing cost adds property tax, insurance, and PMI on top of this amount.
Understanding PMI
Private Mortgage Insurance (PMI) is an additional cost required by lenders when your down payment is less than 20% of the home price. PMI protects the lender — not you — in case of default. The typical cost is 0.5% to 1% of the original loan amount per year, added to your monthly payment.
Fixed-Rate vs Adjustable-Rate Mortgages
Fixed-Rate Mortgage
- Interest rate locked for entire loan term
- Monthly P&I payment never changes
- Predictable budgeting for the life of the loan
- Most popular choice when rates are reasonable
- No risk of payment increases
Adjustable-Rate (ARM)
- Lower initial rate for 5, 7, or 10 years
- Rate adjusts periodically after initial period
- Can save money if you sell or refinance early
- Carries risk of significantly higher payments
- Best for shorter planned ownership periods
How to Get the Best Mortgage Rate
Improve your credit score
Borrowers with scores above 740 typically qualify for the best rates. Pay down debt, avoid new credit inquiries, and correct any errors on your credit report before applying.
Save a larger down payment
Putting 20% or more down eliminates PMI and often qualifies you for better rates. Even moving from 10% to 15% down can improve your rate.
Shop multiple lenders
Rates can vary by 0.5% or more between lenders. Get quotes from at least 3-5 lenders, including banks, credit unions, and online lenders.
Consider buying points
Paying discount points (each point is 1% of the loan amount) can lower your rate by about 0.25%. This makes sense if you plan to stay in the home long enough to recoup the upfront cost.
Lock your rate at the right time
Once you find a good rate, lock it in. Rate locks typically last 30-60 days. If rates are volatile, a longer lock period provides peace of mind.
Mortgage Tax Deductions
Mortgage Interest Deduction
Deduct interest on up to $750,000 of mortgage debt ($375,000 if married filing separately). Only applies if you itemize deductions on your federal tax return.
Property Tax Deduction
Property taxes are deductible, but the total SALT deduction is capped at $10,000 per year. This cap limits the benefit for homeowners in high-tax states.
Points Deduction
Points paid at closing are generally deductible in the year of purchase.
PMI Deduction
PMI premiums may be deductible depending on your income level and current tax law.
See How Your Mortgage Fits Into Your Complete Financial Plan
This calculator shows your monthly mortgage payment. Trajectoryy's full simulator shows how that payment fits alongside your income, taxes, savings, investments, and more — month by month for years into the future.
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