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Amortization Schedule
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How to Use This Free Mortgage Calculator
Our free mortgage calculator helps you estimate your monthly payment with no signup required. Simply enter your home price, down payment, interest rate, and loan term to see instant results including your complete amortization schedule. The calculator automatically adjusts as you type, showing you how different loan scenarios affect your monthly payment and total interest paid over the life of your home loan.
Start by entering the purchase price and your down payment percentage. Our home loan calculator will instantly show your monthly payment breakdown including principal, interest, property taxes, insurance, and PMI if applicable. You can toggle between 15-year and 30-year mortgage terms to compare options. For questions about using the calculator, visit our contact page.
Understanding Your Monthly Payment
Your monthly mortgage payment consists of several key components that first-time home buyers should understand. Principal is the amount borrowed that goes toward paying down your loan balance. Interest is what you pay the lender for borrowing money - in early years, most of your payment goes toward interest. Property taxes and homeowners insurance are typically collected monthly and held in escrow by your lender.
If your down payment is less than 20%, you'll also pay PMI (Private Mortgage Insurance), which protects the lender if you default. Additionally, some properties have HOA fees for community amenities and maintenance. Use our mortgage calculator to see the complete breakdown of these costs for your specific situation.
15-Year vs 30-Year Mortgage: Which is Better?
Choosing between a 15-year and 30-year mortgage is one of the most important decisions for homebuyers. A 30-year mortgage offers lower monthly payments, making homeownership more accessible and freeing up cash for other expenses or investments. However, you'll pay significantly more in total interest over the life of the loan.
A 15-year mortgage comes with higher monthly payments but substantial savings on interest - often hundreds of thousands of dollars less than a 30-year term. You'll also build home equity much faster and own your home outright in half the time. Use the loan term selector in our mortgage calculator to compare both options with your actual numbers. The right choice depends on your income, financial goals, and budget flexibility.
What is PMI and How Can I Avoid It?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's purchase price. PMI typically costs between 0.5% to 1% of your loan amount annually, adding $50-$200+ to your monthly payment depending on your loan size. While PMI protects the lender, it doesn't benefit you as the borrower.
You can avoid PMI by making a 20% down payment or larger. If you can't afford 20% down initially, you can request PMI removal once you've built 20% equity through payments or home appreciation. Some lenders offer "piggyback loans" or lender-paid PMI options. Calculate how PMI affects your payment using the PMI field in our free mortgage calculator above. For personalized advice on avoiding PMI, contact us or speak with a mortgage professional.
Tips for First-Time Home Buyers
First-time home buyers should start by using a mortgage calculator to understand what monthly payment they can comfortably afford. Don't max out your budget - leave room for unexpected repairs, maintenance, and lifestyle expenses. Get pre-approved before house hunting to know your exact borrowing power and strengthen your offers.
Compare interest rates from multiple lenders - even a 0.25% difference can save thousands over your loan term. Consider the total cost shown in the amortization schedule, not just the monthly payment. Build your credit score before applying, save for a larger down payment to avoid PMI, and factor in all costs including property taxes, insurance, and potential HOA fees. Learn more about smart homebuying strategies on our about page, or try different scenarios with our mortgage calculator to find your ideal home loan.