01
What is a mortgage?
A mortgage is a long-term loan used to buy property. The home itself is collateral — if the loan isn't repaid, the lender can foreclose. You repay principal and interest monthly, plus taxes and insurance.
Home buying intelligence
Mortgage Calculator
Estimate monthly mortgage payments, total interest, and amortization basics.
Estimated monthly payment
Stretched$2,396/mo
Total paid $862,633 over 30 yrsInterest $382,633
Total interest
$382,633
over 30 years
Loan term
30 years
360 payments
Down payment
20%
$75,000
Mortgage stress
Stretched
Above 28% — workable, but leaves less room for savings.
Mortgage control panel
Tune the numbers to your situation.
Monthly payment
$2,396
P+I $1,896 · extras $500
Total interest
$382,633
44% of total paid
Principal borrowed
$300,000
$75,000 down · 20%
Income needed
$102,694
at 28% front-end DTI
Affordability
How affordable this mortgage feels
Based on a $95,000 annual income and $2,396/mo housing cost.
Stretched · 30% of income
SafeComfortableStretchedRisky
Above 28% — workable, but leaves less room for savings. Above 28% usually starts to feel stretched for many buyers — leaving less room for savings, emergencies, and everyday life.
Recommended max ratio
28% of income
Income needed (this loan)
$102,694
Verdict
Above 28% — workable, but leaves less room for savings.
Cost breakdown
Where your mortgage money goes
Over 30 years, you'll pay $862,633 in total.
35%
44%
21%
Principal
$300,000
35% of total
Interest
$382,633
44% of total
Tax · insurance · PMI · HOA
$180,000
21% of total
Over 30 years, interest costs more than the original loan. Even modest extra payments can shrink this dramatically.
Interest pressure
$382,633
You'll pay roughly 128% of the loan amount in pure interest over 30 years.
Interest per year (avg)$12,754
Interest per month (avg)$1,063
Cost of borrowing ratio1.28×
Down payment
How your down payment changes the loan
Larger down payments lower monthly cost and total interest — and remove PMI at 20%.
5%
Monthly
$2,974
Total interest
$454,377
+$578 /mo vs current
10%
Monthly
$2,844
Total interest
$430,463
+$448 /mo vs current
20%
CurrentMonthly
$2,396
Total interest
$382,633
30%
No PMIMonthly
$2,159
Total interest
$334,804
−$237 /mo vs current
Reality check
Can I really afford this home?
A plain-English read on what this loan means for your day-to-day life.
30%
of income
What this means
This mortgage looks stretched for a household earning $95,000 per year.
Above 28% — workable, but leaves less room for savings. Most lenders cap front-end housing costs at 28% of gross income, with a softer ceiling at 36% once all debt is included.
Stress score
30/100
Stretched
Affordability class
Stretched home budget
Long-term interest pain
$382,633
128% of loan
Lifestyle flexibility
Limited
Money left for life after housing
Income needed
$102,694
To stay at 28% front-end DTI
Down payment pressure
Relaxed
No PMI — full equity start
Finance ecosystem
Keep planning your home purchase
Connected tools that pair well with the mortgage calculator — built for buyers who plan ahead.
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Translate gross pay to take-home.
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Debt payoff calculator
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Loan calculator
General monthly loan estimator.
Run the numbers
Interest calculator
Simple vs compound interest.
See the math
APR calculator
True annual cost of borrowing.
Reveal true cost
Savings calculator
Grow your down payment.
Estimate savings
Mortgage 101
Understand your home loan
02
Fixed vs adjustable rates
A fixed-rate mortgage locks in your interest rate for the entire term. An adjustable-rate (ARM) starts lower but can move with the market after an intro period. Fixed = predictable; ARM = lower upfront, more risk.
03
How amortization works
Each payment is split between interest (charged on the remaining balance) and principal. Early payments are mostly interest; as the balance drops, more of each payment goes to principal.
04
What affects your payment
Four main levers: loan amount, interest rate, term length, and down payment. Property taxes, insurance, PMI, and HOA fees add on top to form your true monthly cost.
05
Hidden costs of homeownership
Beyond P+I, expect property taxes, homeowner's insurance, possible PMI, HOA dues, maintenance (~1% of home value per year), and closing costs (2–5% of purchase price).
06
How much income do you need?
Most lenders use the 28/36 rule: housing under 28% of gross income, total debt under 36%. This calculator estimates the income needed for your payment to stay under the 28% line.
07
Down payment strategy
Putting 20% down removes PMI and shrinks the loan. But waiting to save 20% has a cost too — rent, missed appreciation, and life. There's no single right answer; the comparison above shows the tradeoffs.
08
Should you pay off early?
Extra principal payments save interest and shorten the loan. They're most powerful early on. Weigh against keeping cash liquid or investing at a higher expected return.
FAQ