Mortgage Calculator


The Mortgage Calculator

A tool to estimate monthly mortgage payments and related expenses, primarily for U.S. residents. It allows for including additional payments and annual increases in costs.

What is a Mortgage?

A mortgage is a loan secured by real estate property. The lender provides funds to the buyer, who agrees to repay the amount over a fixed term, typically 15 or 30 years. Monthly payments consist of principal (the borrowed amount) and interest (the cost of borrowing).

Mortgage Components

Loan amount:

The sum borrowed, usually the purchase price minus down payment.

Down payment:

Upfront payment by the buyer, often 20% or more of the purchase price.

Loan term:

Repayment period, commonly 15, 20, or 30 years. Shorter terms have lower interest rates.

Interest rate:

The cost of borrowing, expressed as an Annual Percentage Rate (APR). Fixed-rate mortgages have a constant rate, while adjustable-rate mortgages (ARMs) are periodically adjusted.

Homeownership Costs

Expenses that continue throughout and beyond the mortgage term, such as:

Property taxes:

Paid to local governments, typically around 1.1% of the property value annually.

Home insurance:

Covers accidents and liabilities related to the property.

HOA fees:

Charged by homeowner's associations for maintaining common areas and amenities.

Other Costs (Utilities and maintenance):

Costs for upkeep and general expenses, often 1% or more of the property value annually.