How to Use This Mortgage Calculator
Our mortgage calculator helps you estimate your monthly payment and total loan cost. Here's how to use it:
- Enter home price: Input the total purchase price of the property you're considering.
- Set down payment: Enter either a dollar amount or percentage (typically 3-20% for conventional loans).
- Select loan term: Choose between 15, 20, or 30-year mortgages. Shorter terms build equity faster but have higher monthly payments.
- Input interest rate: Enter the annual mortgage rate. Rates vary by credit score, loan type, and lender.
- Add property costs: Include annual property taxes, homeowners insurance, PMI (if down payment is less than 20%), and HOA fees if applicable.
The calculator instantly displays your monthly PITI payment, total interest paid over the loan term, and whether you qualify under standard lending guidelines (typically 28% of gross income for housing expenses).
Understanding PITI: Principal, Interest, Taxes & Insurance
PITI is an acronym representing the four main components of most mortgage payments:
- Principal: The amount you're actually borrowing. Each monthly payment reduces your principal, building home equity.
- Interest: The lender's charge for borrowing money. Interest rates are typically fixed for the loan term, though some adjustable-rate mortgages (ARMs) vary.
- Taxes: Annual property taxes paid to your local government, divided into monthly payments through your mortgage escrow account.
- Insurance: Homeowners insurance required by your lender, protecting both you and the lender against damage or loss.
If your down payment is less than 20%, you'll also pay PMI (Private Mortgage Insurance), which protects the lender if you default. PMI typically costs 0.3-1.5% of your loan annually and can be removed once you reach 20% equity.
What Are Good Mortgage Rates? (April 2026)
Mortgage rates fluctuate daily based on market conditions, inflation expectations, and Federal Reserve policy. Current rates vary significantly by credit score and loan type:
- 30-year fixed (excellent credit 740+): 5.8% – 6.3%
- 30-year fixed (good credit 700-739): 6.2% – 6.8%
- 15-year fixed: Typically 0.3-0.5% lower than 30-year rates
- Adjustable-rate mortgages (ARMs): Usually 0.5-1% lower initially, but variable after introductory period
Even a 0.5% difference in interest rate can save or cost you tens of thousands over 30 years. For example, on a $300,000 mortgage, the difference between 6% and 6.5% is about $75/month ($900/year). Shop multiple lenders and consider locking in rates before closing.