🏠Mortgage Calculator
Calculate monthly mortgage payments, total interest, and see how different loan terms affect your home purchase
Loan Details
Purchase price of the home
Percentage of home price
Annual interest rate
Additional Costs
Annual property tax amount
Annual homeowner's insurance premium
Private Mortgage Insurance (auto-calculated if down payment < 20%)
Homeowner's Association fees
Extra Payments
Additional principal payment each month
US Mortgage Calculator – FHA, VA & Conventional Loans
Calculate your monthly mortgage payment using US lending standards. This calculator supports conventional loans, FHA loans (3.5% minimum down payment), and VA loans for eligible veterans. It automatically factors in Private Mortgage Insurance (PMI) when your down payment is below 20%, and includes property taxes, homeowner's insurance, and HOA fees common in American real estate transactions.
Understanding Your Mortgage
🏠 Key Components
- Principal: The amount borrowed
- Interest: Cost of borrowing money
- Property Tax: Annual tax on your property
- Insurance: Protects your home
- PMI: Required if down payment < 20%
- HOA: Community association fees
💡 Smart Tips
- • Aim for 20% down to avoid PMI
- • Extra payments reduce total interest
- • Shorter terms = lower total interest
- • Shop around for best interest rates
- • Factor in closing costs (2-5%)
- • Keep monthly payment under 28% of income
Financial Guidelines & Regulations
CFPB Guidelines on Mortgage Affordability
The Consumer Financial Protection Bureau (CFPB) recommends that your total monthly debt payments—including your mortgage—should not exceed 43% of your gross monthly income for a Qualified Mortgage (QM). Most lenders prefer the 28/36 rule: housing costs under 28% of gross income, total debt under 36%. On a $100,000 household income, this means a maximum monthly payment of approximately $2,333.
Consumer Financial Protection Bureau (CFPB) – Qualified Mortgage Rules
Understanding PMI and How to Remove It
Private Mortgage Insurance (PMI) is required on conventional loans when you put less than 20% down. PMI typically costs 0.5%–1.5% of the loan amount annually. Under the Homeowners Protection Act, lenders must automatically cancel PMI when your loan-to-value (LTV) ratio reaches 78%, or you can request removal at 80% LTV. FHA loans have their own mortgage insurance premium (MIP) that may last the life of the loan.
HUD – Homeowners Protection Act / PMI Cancellation
Current Freddie Mac Rate Trends
Freddie Mac's Primary Mortgage Market Survey tracks weekly average rates for 30-year and 15-year fixed-rate mortgages nationwide. A difference of just 0.5% on a $400,000 loan can save over $40,000 in interest over 30 years. Shopping around among at least 3–5 lenders can save you thousands, as rates and fees vary significantly between institutions.
Freddie Mac – Primary Mortgage Market Survey
Frequently Asked Questions
How much house can I afford on a $100,000 salary?
Using the 28/36 rule recommended by US lenders, a $100,000 gross income supports a maximum monthly housing payment of about $2,333. At a 7% interest rate with 20% down on a 30-year fixed mortgage, this translates to roughly a $400,000–$450,000 home, depending on property taxes, insurance costs, and HOA fees in your area.
What is the difference between FHA, VA, and conventional loans?
Conventional loans require 3–20% down and PMI if under 20%. FHA loans (backed by the Federal Housing Administration) allow as little as 3.5% down but charge mortgage insurance premiums (MIP) for the loan's life if under 10% down. VA loans (for veterans) require zero down payment and no PMI, making them the most affordable option for eligible service members.
Should I pay points to lower my mortgage rate?
Discount points (each costing 1% of the loan amount) typically reduce your rate by 0.25%. On a $400,000 loan, one point costs $4,000 and saves about $65/month. The break-even point is around 5 years. If you plan to stay in the home longer than that, buying points makes financial sense. The CFPB recommends comparing the total cost with and without points.
Financial Accuracy
Disclaimer: This calculator provides estimates for informational purposes only. This is not financial, tax, or legal advice. Please consult a qualified financial advisor for advice specific to your situation.