Understanding Mortgage Calculations
Principal & Interest
Your monthly payment consists of principal (loan amount) and interest (cost of borrowing). Early payments are mostly interest, while later payments are mostly principal.
Taxes & Insurance
Property taxes and homeowners insurance are typically included in your monthly payment through an escrow account managed by your lender.
PMI & Mortgage Insurance
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's value. VA and USDA loans have different insurance structures.
Down Payment Impact
Larger down payments reduce your loan amount, eliminate PMI requirements, and can qualify you for better interest rates from lenders.
Professional Mortgage Analysis
Our mortgage calculators provide institutional-grade accuracy with transparent methodology. Each calculation shows the complete breakdown of your payment components and long-term costs.
Latest Mortgage Rates
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Related Calculators
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Money-Saving Tips
Shop Multiple Lenders
Compare rates from 3-5 different lenders to save an average of $1,500 annually.
Improve Your Credit
A 20-point credit score increase can reduce your rate by 0.125-0.25%.
Consider Points
Paying points upfront can lower your rate if you plan to stay 5+ years.
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