EverEadyToolsPro
Finance
Health

Mortgage Calculator

Trying to buy a house in this economy? Our Mortgage Calculator helps you figure out if you're eating avocado toast or ramen noodles for the next 30 years.

What this calculator does

  • Monthly Payment: Principal + Interest.
  • PITI: Includes Property Tax and Insurance estimates.
  • Amortization: Shows how slowly you pay off the house in the first 10 years.

The Formula

It's the standard loan formula, but with extras. M=Pr(1+r)n(1+r)n−1M = P \frac{r(1+r)^n}{(1+r)^n - 1}

  • Property Tax: Usually ~1.1% of home value annually (varies by state).
  • Insurance: Usually ~$1,200 - $2,000/year.
  • PMI: Private Mortgage Insurance (if you put down <20%).

Unlike math class, here's what that means

Your "Mortgage" isn't just the loan.

  • Principal & Interest: Goes to the bank.
  • Tax: Goes to the government.
  • Insurance: Goes to the insurance company.
  • HOA: Goes to the neighborhood Karen. You have to pay ALL of these.

Example Calculation

House: $400,000. Down Payment: $80,000 (20%). Loan: $320,000 @ 7% for 30 Years.

  1. Loan Payment: $2,129.
  2. Tax: ~$366/mo.
  3. Insurance: ~$100/mo.
  4. Total Check: ~$2,595/mo.

Did You Know? 💡

  • Interest Volume: On a $320k loan at 7%, you will pay $446,000 in interest over 30 years. The house effectively costs you $766,000.
  • 15 vs 30: A 15-year loan has higher monthly payments but saves you MASSIVE amounts of interest (because the rate is lower and the time is shorter).
  • PMI: If you optimize your down payment to hit 20%, you avoid PMI, which is basically throwing money into a furnace.

Expert Insight

House Poor: Lenders will approve you for way more than you should spend. Just because the bank says you can afford a $600k house doesn't mean you can afford the lifestyle. Stick to the 28% Rule: Housing costs shouldn't exceed 28% of your gross income.

Why this matters

A mortgage is the biggest debt you'll ever have. Getting the math right means the difference between building generational wealth and being stressed every month.

Frequently Asked Questions

What is Escrow? A savings account the bank manages for you. You pay extra each month, they put it in Escrow, and then THEY pay your Taxes and Insurance when the bills come. It protects their investment (the house).

Should I buy points? "Points" are fees you pay upfront to lower the interest rate. If you plan to stay in the house for 7+ years, buying points usually saves you money. If you move in 3 years, it's a waste.

Fixed vs ARM?

  • Fixed: Rate never changes. Safe.
  • ARM: Rate changes after 5-7 years. Risky if rates go up.

Related Calculators

Disclaimer: Rates change daily. This is an estimate, not a Loan Estimate (LE).

Mortgage Calculator

$

$

%