What credit score do I need to qualify for a mortgage?

Most conventional loans require a minimum credit score of 620. FHA loans allow scores as low as 580 with 3.5% down. A score above 740 typically qualifies you for the best interest rates.

How much down payment do I need to buy a house?

Conventional loans typically require 3%–20% down. Putting less than 20% usually triggers Private Mortgage Insurance (PMI). FHA loans allow 3.5% down with a credit score of 580 or higher.

What is the difference between a fixed-rate and adjustable-rate mortgage?

A fixed-rate mortgage keeps the same interest rate for the entire loan term, giving you predictable payments. An adjustable-rate mortgage (ARM) starts with a lower rate that adjusts periodically based on market indexes, which can increase your payment over time.

How does the loan term affect my monthly payment?

A shorter loan term (e.g., 15 years) means higher monthly payments but significantly less total interest paid. A 30-year term lowers your monthly payment but costs more in interest over the life of the loan.

What costs are not included in this mortgage calculator?

This calculator estimates principal and interest only. Your actual monthly payment may also include property taxes, homeowner's insurance, HOA fees, and PMI (if your down payment is less than 20%).

Mortgage Calculator — Monthly Payment, Amortization & Total Interest

Loan Details

Home Price$400,000

Down Payment20% · $80,000

Interest Rate6.5% APR

Loan Term

Your Estimate

Monthly Payment

$2,022.62

30-year loan · 6.5% APR

💬 In Plain English

You want to buy a $400,000 home. You're putting $80,000 of your own money down, and borrowing the rest — $320,000 — from a bank. To pay that back you'll send the bank $2,022.62 every month for 30 years. Add it all up and the loan costs you $408,142 more than you borrowed — that's the price of moving in now instead of saving up for 30 years.

Home Price$400,000

Down Payment (20%)$80,000

Loan Amount$320,000

Total Interest$408,142

Total Payment$728,142

● Principal 44%● Interest 56%

Estimate includes principal and interest only. Does not include property taxes, insurance, HOA fees, or PMI. Consult a licensed mortgage professional before making financial decisions.

What Is a Mortgage Calculator?

👋 Simple Explanation

A mortgage is just a really big, really long loan for a house. Almost nobody has hundreds of thousands of dollars sitting in the bank, so a mortgage lets you move in today and pay the bank back slowly — a little bit every month for 15 to 30 years — instead of saving up the entire price first.

A mortgage calculator helps you estimate your monthly mortgage payment based on the home price, down payment, annual interest rate, and loan term. It uses the standard amortization formula to show you exactly how much of your payment goes toward principal (what you owe) versus interest (the cost of borrowing).

Mortgage Payment Formula (M):

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1]

Where P = loan principal, r = monthly interest rate (annual rate ÷ 12), and n = total number of payments (years × 12).

For a $400,000 home with 20% down, 6.5% APR, and a 30-year term: the loan principal is $320,000, the monthly rate is 0.5417%, and the result is approximately $2,023/month in principal and interest.

How to Lower Your Monthly Mortgage Payment

Make a larger down payment. Putting 20% or more down eliminates PMI and reduces the amount you borrow. Even an extra 5% can meaningfully lower your payment.

Choose a longer loan term. A 30-year mortgage has lower monthly payments than a 15-year mortgage for the same loan amount, though you pay more in total interest over time.

Improve your credit score. Borrowers with credit scores above 740 typically receive the best mortgage rates. Even a 0.5% rate reduction can save tens of thousands of dollars over a 30-year loan.

Shop multiple lenders. Rate differences between lenders can be 0.25%–0.75% or more. Always get at least three loan estimates before deciding.

Frequently Asked Questions

What credit score do I need to qualify for a mortgage?: Most conventional loans require a minimum credit score of 620. FHA loans allow scores as low as 580 with 3.5% down. A score above 740 typically qualifies you for the best interest rates.
How much down payment do I need to buy a house?: Conventional loans typically require 3%–20% down. Putting less than 20% usually triggers Private Mortgage Insurance (PMI). FHA loans allow 3.5% down with a credit score of 580 or higher.
What is the difference between a fixed-rate and adjustable-rate mortgage?: A fixed-rate mortgage keeps the same interest rate for the entire loan term, giving you predictable payments. An adjustable-rate mortgage (ARM) starts with a lower rate that adjusts periodically based on market indexes, which can increase your payment over time.
How does the loan term affect my monthly payment?: A shorter loan term (e.g., 15 years) means higher monthly payments but significantly less total interest paid. A 30-year term lowers your monthly payment but costs more in interest over the life of the loan.
What costs are not included in this mortgage calculator?: This calculator estimates principal and interest only. Your actual monthly payment may also include property taxes, homeowner's insurance, HOA fees, and PMI (if your down payment is less than 20%).

Mortgage Calculator

What Is a Mortgage Calculator?

How to Lower Your Monthly Mortgage Payment

Frequently Asked Questions

Mortgage Payment Calculators by Amount