Mortgage Calculator

A mortgage is a long-term loan used to purchase a home, typically repaid over 15–30 years in monthly installments. Your home serves as collateral, meaning the lender can reclaim it if you stop making payments. Your monthly payment consists of two parts: principal (the loan amount you're paying down) and interest (the lender's fee). In the early years, most of your payment goes toward interest. Over time, more goes toward principal — this is called amortization. Key factors that affect your mortgage payment: loan amount, interest rate, loan term, and down payment. A larger down payment reduces your loan amount and may help you avoid private mortgage insurance (PMI). Fixed vs. variable rates: A fixed-rate mortgage keeps the same rate for the entire term, giving you predictable payments. A variable (ARM) rate starts lower but can rise over time. For most homebuyers, a fixed rate provides more financial stability. Tip: Even small extra payments toward the principal each month can save tens of thousands in interest and shorten your loan term significantly.