Calculate Your Mortgage Payments
Plan your home purchase with our complete mortgage calculator featuring amortization schedule, charts, and export options
Monthly Payment
Total Interest Paid
Total Cost of Loan
Payoff Date
| Payment Date | Payment | Principal | Interest | Total Interest | Balance |
|---|
Loan Amount
Loan-to-Value Ratio
Total Monthly Payment
What is a Mortgage?
A mortgage is a loan specifically used to purchase real estate. In a mortgage agreement, the buyer borrows money from a lender (usually a bank) and uses the property as collateral for the loan.
The borrower then repays the loan over time, typically in monthly installments that include both principal and interest. If the borrower fails to make payments, the lender can foreclose on the property.
Key Mortgage Terms
- Principal: The original amount borrowed
- Interest: The cost of borrowing money
- Amortization: The process of paying off a loan through regular payments
- Down Payment: The initial upfront payment for the property
- Escrow: An account held by the lender to pay property taxes and insurance
Types of Mortgages in the US
- Fixed-Rate Mortgage: Interest rate remains the same for the entire loan term
- Adjustable-Rate Mortgage (ARM): Interest rate changes periodically based on market conditions
- FHA Loan: Government-backed loan with lower down payment requirements
- VA Loan: Mortgage available to veterans and service members with no down payment
- USDA Loan: Government loan for rural homebuyers with low to moderate income
Understanding Amortization
Amortization is the process of spreading out loan payments over time. In the early years of a mortgage, a larger portion of each payment goes toward interest. As time passes, more of each payment goes toward reducing the principal balance.
Our amortization schedule shows exactly how each payment is allocated between principal and interest throughout the life of your loan.