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This Mortgage Calculator helps you estimate your monthly payment, total principal, and total interest for your home loan. By entering the home price, down payment, interest rate, and loan term, you can see how much your mortgage will cost over time.
Example Mortgage Calculation
Home Price: $350,000
Down Payment: $70,000
Loan Amount: $280,000
Interest Rate: 6.5%
Loan Term: 30 years
Results
Monthly Payment: $1,769.79
Total Principal Paid: $280,000.00
Total Interest Paid: $357,124.57
Why Use a Mortgage Calculator?
A mortgage is usually the biggest financial commitment for most people. This tool helps you understand the monthly payment you’ll face and the long-term cost of interest. You can also adjust inputs to compare different loan terms or interest rates.
Understanding Mortgage Terms
Home Price: The cost of the property you want to buy.
Down Payment: The upfront cash you pay when purchasing the home.
Loan Amount: The total borrowed (Home Price – Down Payment).
Interest Rate: The yearly rate charged by the lender.
Loan Term: The length of time you have to repay (e.g., 15 or 30 years).
Monthly Payment: The amount you need to pay each month to cover both principal and interest.
Frequently Asked Questions (FAQs)
How do I lower my monthly mortgage payment?
You can lower it by increasing your down payment, choosing a longer loan term, or getting a lower interest rate.
What is the difference between principal and interest?
Principal is the money borrowed. Interest is the extra cost charged by the lender for using that money.
Is a 30-year mortgage better than a 15-year mortgage?
A 30-year mortgage has lower monthly payments but more interest overall. A 15-year mortgage has higher monthly payments but saves a lot on interest.
Does my credit score affect my mortgage rate?
Yes. A higher credit score usually helps you qualify for a lower interest rate.
Can I pay off my mortgage early?
Yes. Many lenders allow early payments. This reduces total interest and shortens the loan term.