Loan & Mortgage Calculator

Calculate your monthly payments, total interest, and discover how extra payments can save you thousands.

Master Your Mortgage & Save Thousands

Understanding Mortgage Basics

Principal: The amount you borrow (home price minus down payment)

Interest: The cost of borrowing money, expressed as an annual percentage

Amortization: How your payment is split between principal and interest over time

Key Insight: Early payments are mostly interest. A $2,000 payment might only reduce principal by $500 in year 1, but $1,800 in year 29.

Common Loan Types

30-Year Fixed Mortgage

Most popular. Predictable payments, but highest total interest.

Best for: Long-term stability, lower monthly payments

15-Year Fixed Mortgage

Higher payments, but save 50-60% on total interest.

Best for: Aggressive savers, higher income earners

ARM (Adjustable Rate)

Lower initial rate that adjusts after fixed period.

Best for: Short-term owners, risk-tolerant borrowers

True Monthly Cost (PITI + HOA)

P - Principal & Interest: Your actual loan payment

T - Property Taxes: Usually 1-2% of home value annually

I - Insurance: Homeowners insurance (required by lenders)

PMI: Required if down payment < 20% (adds $100-300/month)

HOA: Homeowners association fees if applicable

Reality Check: A $2,000 mortgage payment often means $2,800+ total monthly cost.

Strategies to Save Thousands

1. Extra Principal Payments

Even $100/month extra can save $50,000+ and cut 5-7 years off a 30-year mortgage.

2. Bi-Weekly Payments

Pay half your mortgage every 2 weeks = 13 full payments per year instead of 12.

3. Refinance Strategically

If rates drop 0.75%+, refinancing usually makes sense (consider closing costs).

4. Round Up Payments

Round $1,847 to $1,900 or $2,000. Small change, big impact over time.

Avoid These Costly Mistakes

❌ Only considering monthly payment (ignoring total interest)
❌ Not shopping multiple lenders (rates vary by 0.5-1%+)
❌ Forgetting to budget for maintenance (1-3% of home value annually)
❌ Taking cash-out refinances for consumption
❌ Not understanding prepayment penalties

Your Mortgage Action Plan

Use the calculator to understand your true costs
Compare 15 vs 30-year options
Calculate impact of extra payments
Shop at least 3 lenders for best rate
Get pre-approved before house hunting
Keep credit score above 740 for best rates

Frequently Asked Questions

The short answer: 30-year if you need lower payments, 15-year if you can afford higher payments and want to save massively on interest.

THE MATH - $400,000 mortgage at 6.5%:

30-Year Mortgage:
• Monthly payment: $2,528
• Total interest paid: $510,080
• Total cost: $910,080
• Equity after 10 years: $83,000

15-Year Mortgage:
• Monthly payment: $3,483 (+$955/month)
• Total interest paid: $226,910
• Total cost: $626,910
• Equity after 10 years: $259,000

Interest savings with 15-year: $283,170! 🤯

But can you afford $955 more per month?