Mortgage Calculator
Mortgage Payment Summary
Monthly Payment
$0
Loan Amount
$0
Down Payment
$0
Total Interest
$0
Total Cost
$0
Loan-to-Value
0%
About Mortgage Calculations
A mortgage is a loan used to purchase real estate, where the property serves as collateral. The monthly payment typically includes principal, interest, taxes, and insurance (PITI).
Key Mortgage Terms:
| Term | Definition |
|---|---|
| Principal | The amount borrowed to buy the home |
| Interest Rate | The cost of borrowing the money (APR) |
| Loan Term | The length of time to repay the loan (typically 15 or 30 years) |
| Amortization | The process of paying off debt over time through regular payments |
| PMI | Private Mortgage Insurance (required if down payment < 20%) |
| LTV | Loan-to-Value ratio (loan amount divided by home value) |
How Mortgage Payments Work:
- Early payments are mostly interest, with little principal reduction
- Over time, more of each payment goes toward principal
- Shorter loan terms have higher monthly payments but lower total interest
- Making extra payments can significantly reduce total interest paid
Current Mortgage Rates (Sample):
| Loan Type | Average Rate |
|---|---|
| 30-year fixed | 3.5% - 4.5% |
| 15-year fixed | 2.75% - 3.5% |
| 5/1 ARM | 3.0% - 4.0% |
Note: Rates vary by credit score, location, and market conditions.