The "principal & interest" figure this calculator leads with is only part of most homeowners' actual monthly bill. Lenders commonly bundle in property tax and homeowners insurance too (often called an "escrow" payment), and if your down payment is under 20%, you'll typically also pay PMI (private mortgage insurance) until you've built enough equity in the home. Toggle "include property tax, insurance & PMI" above to see a more complete estimate.
The loan term matters more than most people expect. A 30-year loan has lower monthly payments than a 15-year loan for the same amount, but you'll pay significantly more in total interest over the life of the loan — often close to double — because interest is charged on the outstanding balance for twice as long.
This tool provides estimates for planning purposes only. It isn't financial advice, and actual loan terms, rates, and fees depend on your lender, credit profile, and location. Speak with a mortgage professional before making a purchasing decision.
PMI (private mortgage insurance) protects the lender, not you, and is typically required when your down payment is below 20% of the home's value. It's usually removable once you've paid the loan down to 80% of the home's original value, either automatically or by request, depending on the loan type.
It's a genuine tradeoff, not a clear right answer: 15-year loans mean higher monthly payments but far less total interest paid and faster equity building; 30-year loans mean lower monthly payments and more financial flexibility, at the cost of more interest over time. This calculator lets you compare both by changing the loan term chip.
Because interest compounds over a long loan term, even a 0.5% rate difference can add up to tens of thousands of dollars over 30 years. Try adjusting the interest rate field slightly to see the effect on total interest paid.
No — it calculates a standard fixed monthly payment schedule. Making extra principal payments or switching to biweekly payments can meaningfully reduce total interest and shorten your payoff timeline, but that calculation isn't included here.