Mortgage Calculator
Calculate your monthly mortgage payments and visualize your amortization schedule
Mortgage Basics
Fixed-Rate vs. Adjustable-Rate Mortgages
Fixed-rate mortgages offer a consistent interest rate and monthly payment for the life of the loan, providing predictability and stability. Popular terms are 15, 20, and 30 years.
Adjustable-rate mortgages (ARMs) typically start with a lower interest rate that changes periodically after an initial fixed period. ARMs like 5/1 or 7/1 offer lower initial rates but carry the risk of rate increases in the future.
Understanding Loan Terms
A 30-year mortgage offers lower monthly payments but costs more in interest over the life of the loan. A 15-year mortgage has higher monthly payments but builds equity faster and saves significantly on total interest.
When comparing loans, look beyond the interest rate to consider the Annual Percentage Rate (APR), which includes fees and provides a more comprehensive view of the loan's true cost.
Tips for Better Mortgage Terms
Improve Your Credit Score
A higher credit score can significantly lower your interest rate. Pay bills on time, reduce debt, and correct any errors on your credit report before applying for a mortgage.
Save for a Larger Down Payment
A down payment of 20% or more helps you avoid PMI, qualify for better rates, and reduces your loan amount. Every additional percentage point can make a difference in your monthly payment and total interest paid.
Shop Around
Don't settle for the first offer. Compare rates and terms from multiple lenders, including banks, credit unions, and online mortgage providers. Even a small difference in interest rate can save thousands over the life of the loan.
This calculator provides estimates for educational purposes. Actual loan terms may vary based on lender criteria, market conditions, and your financial situation. Always consult with a mortgage professional for personalized advice.