Mortgage Calculator 2026
Estimate your monthly mortgage payment with principal, interest, taxes, insurance, and PMI.
Mortgage Details
Estimated Monthly Payment
$2,539
30-year fixed · 20.0% down
Loan Amount
$320,000
Total Interest
$408,142
Monthly Payment Breakdown
Amortization Schedule (Yearly)
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,577 | $20,695 | $316,423 |
| 2 | $3,816 | $20,455 | $312,607 |
| 3 | $4,072 | $20,200 | $308,535 |
| 4 | $4,345 | $19,927 | $304,191 |
| 5 | $4,636 | $19,636 | $299,555 |
| 10 | $6,410 | $17,861 | $271,284 |
| 15 | $8,864 | $15,407 | $232,189 |
| 20 | $12,257 | $12,014 | $178,129 |
| 25 | $16,949 | $7,322 | $103,373 |
| 30 | $23,438 | $833 | $0 |
Disclaimer
- Calculations are estimates. Actual payments may vary based on lender terms.
- PMI is required when down payment is less than 20% of the home price.
- Property tax rates vary significantly by location.
- Consult a mortgage professional for personalized advice.
How Mortgage Payments Work
Your monthly mortgage payment consists of four main parts, often called PITI: Principal (paying down the loan), Interest (cost of borrowing), Taxes (property tax), and Insurance (homeowner's insurance). If your down payment is less than 20%, you'll also pay PMI (Private Mortgage Insurance).
What Is PMI and When Does It Drop Off?
Private Mortgage Insurance protects the lender if you default. It's required when your down payment is less than 20% of the home price. PMI typically costs 0.3% to 1.5% of the loan amount annually. Under the Homeowners Protection Act, your lender must cancel PMI once you reach 78% loan-to-value (22% equity), and you can request removal at 80%.
15-Year vs 30-Year Mortgage
A 15-year mortgage has higher monthly payments but significantly lower total interest. For a $320,000 loan at 6.5%:
| Term | Monthly P&I | Total Interest |
|---|---|---|
| 15-year | ~$2,789 | ~$182,000 |
| 30-year | ~$2,023 | ~$408,000 |
The 30-year costs about $226,000 more in interest, but the monthly payment is $766 lower. Choose based on your budget flexibility and financial goals.
How Down Payment Affects Your Mortgage
- 3-5% down: FHA or conventional with PMI. Lowest upfront cost but higher monthly payments.
- 10-15% down: Lower PMI than minimum-down loans. Some lenders offer better rates.
- 20%+ down: No PMI required. Best interest rates. Lower monthly payments.
Current Mortgage Rate Environment
Mortgage rates fluctuate based on Federal Reserve policy, inflation, and bond markets. As of early 2026, 30-year fixed rates are in the 6-7% range. Even a 0.5% rate difference on a $400,000 loan can mean over $40,000 in extra interest over 30 years — shop around for the best rate.
Compare mortgage rates on CFPB→Frequently Asked Questions
How much house can I afford?
A common guideline is the 28/36 rule: spend no more than 28% of gross monthly income on housing costs, and no more than 36% on total debt. For a household earning $100,000, that means roughly $2,333/month on mortgage payments.
What's the difference between FHA and conventional loans?
FHA loans are government-backed with lower credit score requirements (580+) and 3.5% minimum down. Conventional loans typically require 620+ credit and 5-20% down, but avoid FHA's mortgage insurance premium for the life of the loan.
What are closing costs?
Closing costs typically run 2-5% of the purchase price and include appraisal fees, title insurance, attorney fees, and prepaid taxes/insurance. On a $400,000 home, expect $8,000-$20,000 in closing costs.
Should I get pre-approved before house hunting?
Pre-approval shows sellers you're a serious buyer with financing ready. It locks in a rate for 60-90 days and gives you a clear budget. In competitive markets, offers without pre-approval are often rejected. Check your credit score before applying.
HUD's guide to buying a home→