Question 1

How is a monthly mortgage payment calculated?

Accepted Answer

A fixed-rate mortgage payment is calculated using the formula: M = P[r(1+r)^n] / [(1+r)^n – 1], where P is the loan principal, r is the monthly interest rate, and n is the total number of payments. Property taxes, homeowners insurance, and HOA fees are added on top to get the total monthly cost.

Question 2

How much can I save by making extra mortgage payments?

Accepted Answer

Extra monthly payments go directly toward principal, reducing the balance faster and cutting the total interest paid. For example, adding $200/month to a $320,000 loan at 6.5% over 30 years can save over $90,000 in interest and pay off the mortgage roughly 7 years early.

Question 3

What is included in a total monthly mortgage payment?

Accepted Answer

A total monthly mortgage payment (often called PITI) includes Principal and Interest on the loan itself, Property Taxes (usually escrowed monthly), Homeowners Insurance, and sometimes HOA dues. This calculator breaks down each component so you can see the full picture.

Question 4

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

Accepted Answer

A 15-year mortgage has higher monthly payments but a much lower total interest cost and faster equity building. A 30-year mortgage offers lower monthly payments and more cash-flow flexibility. Use this calculator to compare both options side by side.

Mortgage Calculator

Loan Details

Monthly P&I (Principal & Interest)

Total Monthly

Total Interest

Payoff

Principal vs Interest Over Time

Yearly Amortization Schedule