* This calculator provides estimates for informational purposes only and does not constitute a loan commitment or offer. Actual rates, payments, and loan amounts may vary. TruView Lending, powered by New American Funding (NMLS #6606). Equal Housing Lender.
how to use a mortgage calculator
A mortgage calculator is useful in a variety of situations:
Compare homes at different price points: Higher-priced homes require more cash up front.
Compare interest rates: A lower rate makes your mortgage cost less.
Try different down payment amounts: A smaller down payment gets you in sooner, but you'll pay more interest over time.
See how the loan term affects your payment: Longer terms mean lower payments but more interest overall.
Include taxes and insurance: Adding these gives you a more realistic picture of what you'll actually owe each month.
the mortgage payment formula
It's much easier to use our calculator, but here's the math behind it:
M = P × ((I × (1 + I)^T) ÷ ((1 + I)^T – 1))
M
Monthly mortgage payment
P
Principal (loan balance)
I
Monthly interest rate (annual rate ÷ 12)
T
Term in months (years × 12)
mortgage terminology
Home Price
The total cost to purchase the home.
Down Payment
The amount you pay up front to secure the loan. Minimums depend on the loan type, but for first-time buyers it's typically 3%–3.5%.
Loan Term
How long you have to repay the mortgage — usually 15 or 30 years.
Interest Rate
The cost of borrowing money, expressed as a percentage. A lower rate means less paid over time.
Principal
The portion of each payment that goes toward reducing your loan balance.
Amortization
A schedule showing how each payment splits between principal and interest over the life of the loan.
Property Taxes
Local taxes that fund schools, public safety, parks, and other community services.
Homeowners Insurance
Coverage for property damage, personal belongings, and temporary living expenses if your home needs major repairs.
PMI (Private Mortgage Insurance)
If your down payment is less than 20%, you may need to pay PMI. It protects the lender if you stop making payments.
HOA Dues
Regular fees paid to a homeowners association for shared amenities and exterior maintenance in your community.
frequently asked questions
A 20% down payment used to be the standard, but it's no longer required. You may be able to buy a home with as little as 3% down on a conventional loan, or 3.5% on an FHA loan. VA loans may require no down payment at all.
This calculator provides a solid estimate based on the numbers you enter, but your actual payment may vary depending on your credit score, loan program, and other factors. The best way to get precise numbers is to speak with one of our loan officers.
Several factors affect your interest rate, including your loan type, loan amount, down payment, and credit history. Market conditions also play a role — rates can change daily.
A typical monthly mortgage payment includes four components: principal, interest, taxes, and insurance — often called PITI. Depending on your loan type and down payment, you may also pay mortgage insurance or HOA dues.
The best loan depends on your situation — your income, credit profile, savings, and whether you're a first-time buyer. Our loan officers can walk you through conventional, FHA, VA, and specialty programs to find what fits.