Down Payment Calculator
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Calculate your estimated monthly mortgage payment
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Mortgage Calculator
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How to use a mortgage calculator
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Mortgage Calculator Uses
A mortgage calculator is useful in a variety of situations, such as when you want to:
Compare homes with different price points: Higher-priced homes generally require a larger upfront investment and result in higher monthly payments. Use the calculator to see what fits within your budget.
Compare interest rates: All else equal, a lower interest rate reduces your mortgage costs and gives you more financial flexibility.
Try different down payment amounts: Putting less down can get you into a home sooner, but may increase your lifetime interest costs. Test scenarios to see what’s best for your goals.
Find out how the loan term affects your payment: Shorter terms (like 15 years) have higher payments but lower total interest. Longer terms (like 30 years) lower your monthly outlay but increase total cost over time.
Include taxes and insurance in your estimates: Most borrowers pay property taxes and homeowners insurance into an escrow, bundled with the monthly mortgage bill. Adding these, along with estimated HOA dues, helps you see the full cost in different neighborhoods.
Mortgage formula
We calculate your monthly mortgage payment using the standard amortization formula for fixed-rate loans:
Where:
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M: Monthly mortgage payment
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P: Principal or loan amount
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r: Monthly interest rate (annual percentage rate divided by 12)
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: Total number of payments (months)
What makes our mortgage calculator different
Highly customizable inputs: Easily enter your home price, down payment (in dollars or percentage), interest rate, loan term, and ZIP code to get precise monthly payment estimates tailored to your situation.
Dynamic inclusion of taxes, insurance, and HOA fees: Our calculator automatically estimates property taxes, homeowners insurance, and HOA fees based on your ZIP code, but allows you to override these with your own values for more accurate budgeting.
Instant amortization and payoff insights: Visualize your loan amortization schedule and test extra payments to see how they affect your payoff timeline and total interest saved.
Explore various loan term and down payment scenarios: Quickly compare 15-, 20-, and 30-year terms and different down payment amounts to find the best fit for your budget and goals.
User-friendly experience with real-time calculation: Designed for ease-of-use with responsive updates as you adjust inputs — no waiting, no guesswork.
Trusted guidance with local relevance: Combining expert mortgage knowledge with local data ensures your estimates match your real-world costs as closely as possible.
Mortgage terminology
Home price: Total price of the property.
Down payment: Upfront cash applied to the purchase; typically 3% to 3.5% minimum for first-time buyers.
Loan term: Length of time to repay the loan.
Interest rate: The cost of borrowing as a yearly percentage.
Annual percentage rate (APR): Includes both the interest rate and closing costs—shows total cost of the loan.
Mortgage points: Prepaid interest to reduce your rate; each point is 1% of your loan.
Principal: Portion of each monthly payment that reduces your loan balance.
Amortization: The process of spreading payments over time; early payments mostly cover interest, later payments cover more principal.
Property tax: Local taxes typically escrowed with your payment to cover community services.
Homeowners insurance: Insurance for damages, belongings, and extra living costs if repairs are needed.
Mortgage insurance: Usually required with low down payments to protect lenders in case of default.
HOA dues: Fees paid by members of homeowner associations for maintenance and shared amenities.
3 Easy Steps to Your Mortgage
Apply Online
Fill out a secure, digital application in minutes—no paperwork required.
Get Instant Decision
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Close & Move In
Sign digitally and schedule your closing—ready for the keys, stress-free.
Down Payment Calculator FAQ's
What’s included in my mortgage payment? (P&I, taxes, insurance, HOA, and possibly PMI)
A standard mortgage payment often includes principal (the amount borrowed), interest (the cost to borrow), property taxes, and homeowners insurance, sometimes summarized as PITI. If the down payment is below 20% and the loan is conventional, private mortgage insurance (PMI) may also be required. Homeowners Association (HOA) fees are typically billed separately, but they should be budgeted as part of your housing expenses.
How does the interest rate affect my payment?
Interest rate directly impacts your monthly payment. A higher rate makes monthly payments larger and increases total interest paid over the life of your loan, while a lower rate reduces both. Even a small change in the rate can mean significant differences in monthly and lifetime costs.
Do I need 20% down to avoid PMI?
Most conventional mortgages require PMI if your down payment is less than 20%. However, certain loan programs offer alternatives—like lender-paid PMI, “piggyback” second mortgages, or VA loans for veterans, which don’t require PMI regardless of down payment. For conventional loans, 20% down is generally the benchmark for avoiding PMI.
How do property taxes in Michigan change my monthly cost?
Property taxes are included in many mortgage payments through escrow, and they vary by location and home value. In Michigan, property taxes often rise after purchase due to reassessment. Increases in property taxes will directly increase your monthly payment; likewise, decreases will lower your escrow contribution.
Should I choose a 15-year or 30-year term?
A 15-year mortgage offers faster payoff, less interest over the life of the loan, and often a lower rate—but with a higher monthly payment. A 30-year mortgage keeps payments lower but results in more interest paid overall. The right choice depends on your budget and financial goals.
Can I add extra principal payments and see payoff impact?
Yes, making extra principal payments reduces your loan balance faster, shortens your payoff time, and saves significant interest. Even small additional payments make a difference over time. Many online calculators—and your lender—can show exactly how extra payments will affect your payoff date and savings.
How accurate are the estimates vs. a lender quote?
Online mortgage calculators can offer close estimates based on user input but may not factor in all costs (like PMI, variable taxes, fluctuating insurance, or lender fees). For binding numbers—including all details and eligibility factors—consulting a mortgage lender is essential.
What credit score range generally gets better rates?
Generally, a credit score above 740 qualifies for the lowest rates, while scores in the 700–739 range are still strong. Rates tend to increase for scores below 700. Each lender sets its own cutoffs, so check specific requirements as you apply.
What if I have an HOA?
HOA fees—covering community maintenance and amenities—are typically due monthly, quarterly, or annually. These fees are not included in most mortgage payments or escrow accounts and are paid directly to the association. They should always be factored into your total housing budget.
When does PMI fall off?
PMI is automatically canceled once your loan balance reaches 78% of the home’s original value (per federal law), but you can typically request removal at 80% loan-to-value if you’re in good standing. Some programs and FHA loans have different rules; always check with your lender for specifics.
