Frequently Asked Questions
Get answers to common questions about our mortgage calculator and understand how to use it effectively for your home buying decisions.
How does the mortgage calculator work?
Our mortgage calculator uses the standard amortization formula to calculate your monthly payments. It takes into account your loan amount, interest rate, loan term, down payment, property tax, home insurance, and PMI (if applicable). The calculator shows you a complete breakdown of your monthly payment and provides an amortization schedule showing how your payments are split between principal and interest over time.
What is included in the monthly payment calculation?
The monthly payment includes: Principal and Interest (P&I), Property Tax (monthly), Home Insurance (monthly), and Private Mortgage Insurance (PMI) if your down payment is less than 20%. The calculator provides a detailed breakdown so you can see exactly what makes up your total monthly payment.
What is PMI and when do I need it?
PMI (Private Mortgage Insurance) is typically required when your down payment is less than 20% of the home's purchase price. It protects the lender if you default on your loan. PMI usually costs between 0.5% to 1% of your loan amount annually. Once you reach 20% equity in your home, you can usually request to have PMI removed.
How accurate are the calculations?
Our calculator uses industry-standard formulas and provides accurate estimates for planning purposes. However, actual mortgage terms may vary based on your credit score, lender requirements, and current market conditions. Always consult with a mortgage lender for exact rates and terms.
What is an amortization schedule?
An amortization schedule shows how your mortgage payments are split between principal and interest over the life of your loan. Early payments are mostly interest, while later payments are mostly principal. This schedule helps you understand how much of your home you'll own at any point and how much interest you'll pay over time.
Can I use this calculator for refinancing?
Yes! You can use this calculator for refinancing by entering your new loan amount, interest rate, and loan term. The calculator will show you how your new monthly payment compares and help you determine if refinancing makes financial sense.
What's the difference between 15-year and 30-year mortgages?
A 15-year mortgage has higher monthly payments but lower total interest costs and builds equity faster. A 30-year mortgage has lower monthly payments but higher total interest costs over the life of the loan. The calculator can help you compare both options to see which fits your budget better.
How do I estimate property tax and insurance?
Property tax is typically 1-2% of your home's value annually, but varies by location. Home insurance usually costs 0.5-1% of your home's value annually. You can get more accurate estimates by contacting your local tax assessor and insurance providers. The calculator allows you to input your own estimates.
Is this calculator free to use?
Yes! Our mortgage calculator is completely free to use with no registration required. You can calculate as many scenarios as you want to help you make informed decisions about your mortgage.
Can I download my calculation results?
Yes! You can download your amortization schedule as a CSV file. This allows you to save your results and use them for further analysis or comparison with other mortgage options.
Additional Resources
Still Have Questions?
Can't find the answer you're looking for? We're here to help you understand your mortgage options and make informed decisions.