Question 1

How do I calculate a mortgage payment?

Accepted Answer

The standard formula for principal and interest is: monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. Enter your home price, down payment, interest rate, and loan term and this calculator applies that formula instantly, then adds optional taxes, insurance, HOA, and PMI.

Question 2

What is the monthly payment on a $400,000 mortgage?

Accepted Answer

On a $400,000 loan at 7% over 30 years, the principal-and-interest payment is about $2,661 per month before taxes or insurance. The exact figure depends on your down payment, rate, and term — a 20% down payment on a $500,000 home also produces a $400,000 loan.

Question 3

What is the monthly payment on a $300,000 mortgage?

Accepted Answer

A $300,000 loan at 7% for 30 years has a principal-and-interest payment of roughly $1,996 per month. Shorter terms raise the monthly payment but cut total interest — the same loan over 15 years at 7% is about $2,696 per month.

Question 4

What credit score do I need for a mortgage?

Accepted Answer

Conventional loans typically require a minimum credit score around 620, though better rates are usually available at 740 and above. FHA loans may accept scores as low as 580 with 3.5% down. Lenders also weigh income, debt-to-income ratio, and down payment alongside your score.

Question 5

What is PMI and when is it required?

Accepted Answer

Private mortgage insurance (PMI) protects the lender when your down payment is less than 20% of the home price. It is usually required on conventional loans until you reach 20% equity. PMI typically costs 0.5% to 1% of the loan amount per year, added to your monthly payment.

Question 6

What is the difference between principal and interest?

Accepted Answer

Principal is the portion of each payment that reduces your loan balance. Interest is the cost of borrowing, calculated on the remaining balance. Early in a loan most of each payment goes to interest; over time the principal share grows as the balance shrinks.

Question 7

How does a 15-year mortgage compare to a 30-year mortgage?

Accepted Answer

A 15-year loan has higher monthly payments but a lower interest rate and far less total interest. On a $300,000 loan at 7%, a 30-year payment is about $1,996 versus roughly $2,696 on a 15-year term, but the 15-year loan saves well over $200,000 in total interest over the life of the loan.

Question 8

What is an amortization schedule?

Accepted Answer

An amortization schedule is a table showing every monthly payment broken into principal and interest, plus the remaining balance after each payment. It illustrates how interest dominates early payments and how extra principal payments accelerate payoff. Use our Amortization Calculator for the full schedule.

Question 9

How much house can I afford?

Accepted Answer

A common guideline is that housing costs should not exceed 28% of gross monthly income, and total debt payments should stay under 36%. Lenders also use debt-to-income ratios and credit history. This calculator shows your estimated payment so you can compare it against your income and other expenses.

Question 10

What is the difference between fixed-rate and adjustable-rate mortgages?

Accepted Answer

A fixed-rate mortgage keeps the same interest rate for the entire loan term, so your principal-and-interest payment never changes. An adjustable-rate mortgage (ARM) starts with a lower fixed rate for a set period, then adjusts periodically based on market indexes, which can raise or lower your payment.

#	Payment	Principal	Interest	Balance
1	$2,128.97	$262.30	$1,866.67	$319,737.70
2	$2,128.97	$263.83	$1,865.14	$319,473.87
3	$2,128.97	$265.37	$1,863.60	$319,208.50
4	$2,128.97	$266.92	$1,862.05	$318,941.58
5	$2,128.97	$268.48	$1,860.49	$318,673.10
6	$2,128.97	$270.04	$1,858.93	$318,403.06
7	$2,128.97	$271.62	$1,857.35	$318,131.44
8	$2,128.97	$273.20	$1,855.77	$317,858.24
9	$2,128.97	$274.79	$1,854.17	$317,583.45
10	$2,128.97	$276.40	$1,852.57	$317,307.05
11	$2,128.97	$278.01	$1,850.96	$317,029.04
12	$2,128.97	$279.63	$1,849.34	$316,749.41

Price	5.5%	6%	6.5%	7%	7.5%	8%	8.5%
$200k
$250k
$300k
$350k
$400k
$450k
$500k
$600k
$750k
$1000k

Free Mortgage Calculator — Monthly Payment and Cost

How this calculator works

How to use this calculator

Common questions