Calculate your monthly mortgage payment including principal, interest, taxes and insurance.
Type the total purchase price of the home you're considering.
Enter the amount you plan to put down — typically 3-20% of the home price.
Enter the rate from your lender quote. The 2026 average is around 6.5% for a 30-year fixed.
Select 15 or 30 years. Shorter terms have higher payments but save significantly on interest.
View your monthly payment breakdown including principal, interest, taxes, and insurance.
Where M = monthly payment, P = loan principal, r = monthly interest rate (annual ÷ 12), n = total number of payments.
Increasing your down payment to 20% eliminates PMI, potentially saving $150-$200/month.
Shopping around with just 3 lenders can save you over $3,500 on your mortgage over its lifetime.
Your monthly mortgage payment is calculated using the loan amount, interest rate, and loan term. The formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal, r is the monthly rate, and n is total payments. On a $350,000 loan at 6.5% for 30 years, that's about $2,212/month for principal and interest alone — add taxes and insurance for your full payment.
For the best mortgage rates in 2026, aim for a credit score of 760+. Here's the general breakdown: 760+ gets the lowest rates, 700-759 adds about 0.25-0.5% to your rate, 660-699 adds 0.5-1%, and below 660 significantly increases your rate or may require FHA. Even a 0.5% rate difference on a $300,000 loan costs $30,000+ over 30 years.
Using the 28% rule (housing costs ≤ 28% of gross income), on $75,000/year you can afford about $1,750/month for mortgage, taxes, and insurance. At 6.5% interest with 10% down, that translates to roughly a $280,000-$320,000 home depending on your property taxes and insurance costs. Your DTI ratio and existing debts will also affect approval.
Each discount point costs 1% of your loan amount and typically lowers your rate by 0.25%. On a $300,000 loan, one point costs $3,000 and saves about $50/month. Break-even: 60 months (5 years). Pay points if you'll stay in the home 5+ years; skip them if you might move sooner. In 2026's rate environment, points can be worth it for long-term homeowners.
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It costs 0.5-1.5% of the loan annually ($125-$375/month on a $300,000 loan). You can request PMI removal at 20% equity, and it's automatically cancelled at 22% equity. Ways to reach 20% faster: extra payments, home appreciation, or refinancing.