Mortgage Calculator

This calculator estimates a monthly mortgage payment and shows how the loan payment, taxes, insurance, and HOA fees affect the total.

A mortgage payment may include several costs. Principal reduces the amount you owe, while interest is the cost of borrowing money. Property taxes, home insurance, mortgage insurance, and HOA fees may add to the total monthly cost, but they do not all reduce the loan balance.

Early in a mortgage, more of the principal-and-interest payment usually goes toward interest. Over time, as the balance falls, more of that payment goes toward principal.

This estimate assumes a fixed interest rate and equal principal-and-interest payments over the full loan term. A longer loan term may lower the monthly payment, but it can increase the total interest paid over time.

The interest rate describes the cost of borrowing. The annual percentage rate, or APR, also includes certain loan fees, so it may be higher than the interest rate.

Key takeaway

Only the principal portion lowers your loan balance and builds equity. Interest, taxes, insurance, and HOA fees do not.

Helpful terms

Principal

The amount you borrowed that you still need to pay back.

Interest

What the lender charges for lending you money.

Equity

The part of your home’s value that you own, after subtracting what you still owe.

HOA

A homeowners association. Some communities charge a regular fee for shared services or amenities.

Sources: CFPB on total mortgage payments and CFPB on loan costs and APR.