Mortgage Calculator

A mortgage calculator helps you understand the true cost of a home loan before you sign anything — your monthly payment, total interest paid over the life of the loan, and a full amortization schedule showing exactly how each payment is split between principal and interest. In 2026, with 30-year fixed mortgage rates averaging around 6.4% and the median US home price above $400,000, running the numbers before you make an offer can save you tens of thousands of dollars in negotiating power and prevent you from overextending your budget.

Our mortgage calculator includes all four components of your true monthly housing cost: principal and interest, property taxes (auto-filled by state using Tax Foundation median rates), homeowners insurance, and PMI if your down payment is under 20%. It also includes an extra payments feature — unique among free calculators — that shows exactly how much interest you save by making additional principal payments each month, year, or as a lump sum.

How to Use This Mortgage Calculator

Enter the home price and your down payment in the Loan Details section. The calculator shows your down payment as a percentage of the home price in real time. Select your loan program — the dropdown offers 30-Year Fixed, 20-Year Fixed, 15-Year Fixed, 10-Year Fixed, 30-Year FHA, and 30-Year VA. Each program auto-fills the current 2026 average rate, which you can edit to reflect your actual quote.

In Taxes, Insurance and Fees, select your state to auto-fill the median property tax rate. You can override this with your county’s actual rate if you know it. The homeowners insurance field defaults to 0.64% of the home value annually — the national average. Enter any HOA fees. If your down payment is under 20%, the PMI field appears automatically with a default rate of 0.50% annually.

Click Extra Payments to model paying off your mortgage faster. Enter a monthly extra payment, an annual lump sum, or a one-time payment. The calculator shows how many months earlier you pay off the loan and how much total interest you save.

Click Calculate Mortgage to see your full results: monthly payment, total interest, total cost, payment breakdown, two charts, and an amortization schedule you can view by year or by month.

Mortgage Rates in 2026: What to Expect

After the Federal Reserve’s aggressive tightening cycle from 2022 to 2023 — which pushed 30-year rates above 8% in late 2023 — rates have gradually declined as inflation returned toward the 2% target. As of April 2026, average mortgage rates are:

*FHA rate includes 1.75% upfront MIP added to loan balance. Monthly payment reflects P+I only. Source: Bankrate, Google, April 2026.

Your actual rate depends on your credit score, down payment, loan amount, and the lender. A borrower with a 780+ credit score typically qualifies for rates 0.25–0.75% below the national average. A borrower with a 640 score may pay 0.5–1.5% above it. Enter your expected rate in the calculator above — even a 0.25% rate difference on a $350,000 loan translates to roughly $15,000 in additional interest over 30 years.

2026 Conforming Loan Limits (FHFA)

The Federal Housing Finance Agency sets conforming loan limits — the maximum loan size that Fannie Mae and Freddie Mac will purchase. For 2026, the limits are:

Source: FHFA.gov, announced November 25, 2025. AK/HI/Guam/USVI 1-unit baseline: $1,249,125. Loans above the conforming limit are called jumbo loans and require stronger credit, larger down payments, and carry higher interest rates. The calculator shows a warning when your loan amount exceeds $832,750.

Down Payment: How Much Do You Really Need?

The conventional wisdom is 20% down — and there are good reasons for it. A 20% down payment eliminates PMI, reduces your monthly payment significantly, and gives you instant equity equal to the down payment. On a $350,000 home, 20% down is $70,000 — a high bar for many first-time buyers.

The good news: you do not need 20% down to buy a home in 2026. Here are the realistic minimums by loan type:

Conventional loans: As low as 3% down for first-time buyers through Fannie Mae HomeReady or Freddie Mac Home Possible programs. PMI is required until you reach 20% equity, typically adding $50–$200/month to your payment depending on loan size and credit score.

FHA loans: 3.5% down with a credit score of 580 or higher. 10% down with a score of 500–579. FHA loans charge both an upfront MIP of 1.75% (added to the loan balance) and an annual MIP of 0.55% for loans over $625,500 or 0.50% for loans at or below $625,500. Unlike conventional PMI, FHA MIP typically stays for the life of the loan on loans with less than 10% down.

VA loans: 0% down for eligible veterans, active-duty service members, and surviving spouses. No PMI. VA charges a funding fee of 2.15% for first-time use (0% down) instead. Rates average 5.80% in 2026 — typically below conventional rates.

USDA loans: 0% down for homes in eligible rural areas. Charges a 1.0% upfront guarantee fee and 0.35% annual fee instead of PMI. DTI guideline is 41%.

PMI: What It Costs and How to Remove It

Private Mortgage Insurance (PMI) protects the lender — not you — if you default on the loan. It is required on conventional loans when your down payment is less than 20%. The cost varies by lender and credit score but typically runs 0.3% to 1.5% of the loan amount per year. On a $320,000 loan at 0.50%, that is $1,600 per year or about $133 per month.

PMI is not permanent. Under the Homeowners Protection Act, lenders must automatically cancel PMI when your loan balance reaches 78% of the original purchase price. You can request cancellation at 80%. You can also accelerate this by making extra principal payments — use the Extra Payments section in the calculator above to model this. Refinancing when you have 20% equity is another option, though refinance costs must be weighed against the PMI savings.

The True Cost of a Mortgage: PITI Explained

Lenders and the mortgage industry use PITI to describe the four components of your total monthly housing cost: Principal, Interest, Taxes, and Insurance. When a lender qualifies you for a mortgage, they use your total PITI payment (plus any HOA fees) as the numerator in your front-end debt-to-income (DTI) ratio.

The standard guideline is that your PITI should not exceed 28% of your gross monthly income — the “front-end” DTI limit. On a $6,500/month gross income, the maximum PITI is $1,820. Your total debt payments (PITI plus all other monthly debts) should not exceed 36% — the “back-end” DTI limit, or $2,340 on that same income. FHA loans allow up to 31% front-end and 43% back-end. VA and USDA loans primarily evaluate the 41% back-end ratio.

Use the Home Affordability Calculator to work backwards from your income and existing debts to find the maximum home price you can qualify for before you shop.

Extra Payments: How Much Do They Save?

Extra principal payments are one of the most powerful financial moves available to homeowners. Every dollar of extra principal you pay reduces the balance on which future interest is charged — the savings compound over time. On a $280,000 loan at 6.4% over 30 years:

Use the Extra Payments section in the calculator above to model your own scenario. Even a modest $100/month extra saves nearly $28,000 in interest and pays off your mortgage over 3 years early — one of the highest guaranteed returns available on any financial decision.

Frequently Asked Questions

What is included in a monthly mortgage payment?

A full monthly mortgage payment includes four components known as PITI: Principal (the portion reducing your loan balance), Interest (the lender’s charge for the loan), Taxes (property taxes held in escrow), and Insurance (homeowners insurance, also escrowed). If your down payment is under 20%, PMI is added as a fifth component. HOA fees, while not part of PITI, are an additional monthly housing cost the calculator includes separately.

What is the 2026 conforming loan limit?

The FHFA 2026 conforming loan limit for a single-family home is $832,750 in most of the US. In high-cost areas (such as parts of California, New York, and Hawaii), the ceiling is $1,249,125. Loans above these limits are called jumbo loans and require stronger credit qualifications. The limit increased from $806,500 in 2025 — a 3.26% increase reflecting home price appreciation. Source: FHFA.gov, announced November 25, 2025.

How much house can I afford on my salary?

The standard guideline is that your total monthly housing cost (PITI) should not exceed 28% of your gross monthly income. On a $80,000 annual salary ($6,667/month gross), the maximum PITI is approximately $1,867/month. At a 6.4% rate over 30 years with 20% down, that supports a home price of roughly $310,000–$325,000 depending on your property tax rate and insurance costs. Use the Home Affordability Calculator for a personalized estimate.

What credit score do I need to get a mortgage in 2026?

The minimum credit score for a conventional mortgage is typically 620, though scores above 740 get the best rates. FHA loans accept scores as low as 580 for 3.5% down or 500 for 10% down. VA loans have no official minimum score but most lenders require 620+. USDA loans typically require 640+. Each 20-point improvement in your credit score above 620 can reduce your rate by 0.125–0.25%, which translates to meaningful savings over the life of the loan.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage at today’s 5.75% rate saves dramatically on total interest compared to a 30-year at 6.4%. On a $280,000 loan, the 15-year costs roughly $144,000 in total interest versus $351,000 for the 30-year — a difference of $207,000. However, the monthly payment is about $573 higher on the 15-year. The right choice depends on your cash flow and alternative uses for that $573/month. If you can reliably invest the difference at returns above 6%, the 30-year may win mathematically. If cash flow discipline is the concern, the 15-year forces the savings.

What is PMI and when does it go away?

PMI (Private Mortgage Insurance) is required on conventional loans when your down payment is less than 20% of the purchase price. It protects the lender if you default. Under the Homeowners Protection Act, your lender must automatically cancel PMI when your loan balance reaches 78% of the original purchase price based on the original amortization schedule. You can request cancellation at 80% if you have a good payment history. Making extra principal payments accelerates PMI removal — model this using the Extra Payments feature above.

What are closing costs and how much should I budget?

Closing costs typically run 2% to 5% of the loan amount. On a $350,000 home with $70,000 down, closing costs on the $280,000 loan would range from $5,600 to $14,000. Common costs include origination fees (0.5%–1%), appraisal ($400–$700), title insurance ($700–$1,500), escrow setup, attorney fees (in some states), and prepaid items like property taxes and homeowners insurance. Some lenders offer “no-closing-cost” mortgages that roll these into a slightly higher rate — run the math to see which option is cheaper long-term.

How does refinancing work and when does it make sense?

Refinancing replaces your current mortgage with a new loan — usually to get a lower rate, change the loan term, or tap home equity. The general rule of thumb is that refinancing makes sense if you can reduce your rate by at least 0.75–1.0% and you plan to stay in the home long enough to recoup the closing costs (typically 2–3 years). If 30-year rates drop from your current 6.4% to 5.5%, a refinance on a $280,000 balance saves approximately $145/month in P+I — recovering $6,000 in closing costs in about 41 months.

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