For informational purposes only. This tool provides estimates based on your inputs and may differ from actual outcomes. It does not constitute financial advice. Please consult a qualified professional before making financial decisions. Terms
Calculate your monthly payment, see the full amortization schedule, and compare ARM vs. fixed and refinance scenarios.
Based on the 28% DTI rule with $8,000/mo income, your max home price is $339,164. You are $60,836 over your affordable range.
Down payment + estimated closing costs (3%) + 3 months of housing payments as emergency reserve.
Pay half your monthly payment every two weeks. 26 half-payments = 13 full payments per year instead of 12.
Home value growth at 3%/yr vs remaining loan balance. Your equity is the gap between the two lines.
Advanced Analysis
Insights
Your mortgage payment is 32% of gross income, slightly above the 28% guideline but below 36%.
Total interest ($408,142) exceeds 102% of the home price. Consider a shorter term or extra payments.
Source: NAR 2024 / CFPB Guidelines
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Your monthly mortgage payment consists of principal and interest (P&I), plus property taxes, homeowners insurance, and possibly PMI. Early in the loan, most of your payment goes to interest. Over time, the split shifts toward principal. With a $320,000 loan at 6.5%, you will pay $408,142 in total interest over 30 years. That is why even small rate differences matter enormously.
Putting down at least 20% eliminates PMI (Private Mortgage Insurance), which typically costs 0.3% to 1.5% of the loan annually. Beyond the down payment, budget 2% to 5% of the home price for closing costs: lender fees, title insurance, appraisals, and prepaid taxes. This calculator estimates your total savings needed: down payment + closing costs + a 3-month emergency reserve.
Paying half your monthly amount every two weeks results in 26 half-payments (13 full payments) per year instead of 12. That one extra payment per year goes directly to principal, saving $93,997 in interest and cutting 5 years off your loan. One of the simplest ways to build equity faster.
A fixed-rate mortgage locks your rate for the entire term, giving payment predictability. An adjustable-rate mortgage (ARM) starts with a lower rate that adjusts after an initial fixed period (typically 3, 5, 7, or 10 years). ARMs can save money if you plan to sell or refinance before the rate adjusts, but carry significant risk if market rates rise sharply.
Mortgage interest is tax-deductible on loan balances up to $750,000 (Tax Cuts and Jobs Act, 2017). The deduction is most valuable in the early years when interest payments are highest. At the 22% federal bracket, your effective mortgage rate drops to 5.07%. Note: you must itemize deductions to claim this benefit.
Your home equity grows from two sources: paying down principal each month and home price appreciation. At 3% annual appreciation, a $400,000 home could be worth $537,567 in 10 years. Equity is the difference between your home is market value and remaining loan balance. It is your real wealth in the property.
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Free mortgage calculator with full amortization schedule, closing costs estimate, savings needed, biweekly vs monthly comparison, equity timeline, DTI affordability check, ARM vs fixed, tax deductions, and refinance analysis.
Using the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n – 1], where P is principal, r is monthly rate, and n is total payments. The calculator includes property tax, insurance, PMI (if down payment is below 20%), and HOA fees for a complete PITI breakdown with an interactive donut chart.
The calculator uses the 28% front-end DTI (Debt-to-Income) rule: your total housing payment should not exceed 28% of your gross monthly income. Enter your income and the affordability check shows your maximum home price instantly, with a visual indicator of whether your current selection is within budget.
Closing costs include lender fees, title insurance, appraisal, prepaid taxes, and other settlement charges, typically 2% to 5% of the home price. This calculator lets you adjust the closing cost percentage and includes it in the total savings needed to buy, alongside your down payment and a 3-month emergency reserve.
You need three things: the down payment, closing costs (typically 2-5% of home price), and an emergency reserve (at least 3 months of total housing payments). The Savings Needed section calculates this total automatically based on your inputs, giving you a clear savings target.
Paying half your monthly payment every two weeks results in 26 half-payments (13 full payments) per year instead of 12. That one extra payment per year goes directly to principal, typically saving tens of thousands in interest and cutting 4-6 years off a 30-year mortgage.
The equity timeline chart shows how your home equity grows over time from two sources: paying down your loan principal and home price appreciation. You can adjust the appreciation rate to model different housing market scenarios and see your projected equity at years 5, 10, and at payoff.
A fixed-rate mortgage locks your interest rate for the entire term. An adjustable-rate mortgage (ARM) offers a lower initial rate for a fixed period (3, 5, 7, or 10 years), then adjusts to a higher rate. The PRO ARM vs Fixed comparison shows total interest cost and balance trajectories for both options side by side.
Mortgage interest is tax-deductible on loan balances up to $750,000 (TCJA 2017 rule). The PRO tax benefit calculator shows your effective mortgage rate after deductions, first-year savings, and total tax savings over the loan based on your marginal federal tax bracket. You must itemize deductions to claim this benefit.
The PRO refinance comparison models a new rate, term, and closing costs against your current mortgage. It calculates monthly savings, total interest savings, net savings after closing costs, and the break-even month: the point where your cumulative savings exceed the refinance cost.
The core calculator with monthly payment breakdown, closing costs estimate, savings needed, amortization chart, biweekly comparison, equity timeline, DTI check, and affordability analysis is completely free. PRO ($9.99/month) unlocks payoff strategies, ARM vs fixed analysis, tax benefit calculator, refinance modeling, and full monthly amortization table.
