Our calculator provides estimates for principal and interest payments. Actual mortgage payments often include additional amounts for property taxes, homeowners insurance, and possibly private mortgage insurance (PMI) if your down payment is less than 20%. These additional costs can typically range from 1-4% of the home value annually.

Your down payment directly impacts three key aspects: 1) It reduces your loan amount, leading to lower monthly payments. 2) A larger down payment (20% or more) eliminates the need for PMI, saving you hundreds annually. 3) It affects your loan-to-value ratio, which can influence your interest rate. Even a 5% increase in down payment can make a significant difference in your long-term costs.

Absolutely! Our calculator works perfectly for refinancing scenarios. Simply enter your home's current value (not the original purchase price), your remaining loan balance as the "loan amount," and the new terms you're considering. The calculator will show you potential savings and help determine if the refinance costs are worth it based on how long you plan to stay in the home.

Our calculator uses standard amortization formulas that match how lenders calculate mortgage payments. The results will be identical to what lenders provide, assuming the same inputs. However, actual loan offers may vary slightly due to lender-specific fees or if your rate changes between pre-approval and closing. We recommend using rates from recent loan estimates for maximum accuracy.

The main differences are: 1) Payment amount - 15-year payments are higher but pay off the loan faster. 2) Interest rate - 15-year loans typically have lower rates. 3) Total interest paid - You'll pay significantly less interest over the life of a 15-year loan. 4) Flexibility - 30-year loans offer lower payments with the option to make extra payments. Our calculator lets you compare both scenarios side by side.

While our calculator focuses on principal and interest, we recommend budgeting for property taxes separately. Taxes vary by location but typically range from 0.5-2% of home value annually. Divide by 12 to estimate the monthly amount. Many lenders require you to escrow taxes and insurance, so they'll be included in your actual payment. Check local tax rates for precise estimates.

Interest rates have a dramatic impact: A 1% rate increase on a $300,000 loan adds about $175 to monthly payments and $63,000 in total interest over 30 years. Conversely, a 1% decrease saves the same amount. Rates fluctuate based on market conditions, your credit score, loan type, and term. Our calculator shows how sensitive your payment is to rate changes.

Amortization is the process of paying off debt through regular payments over time. With mortgages, early payments are mostly interest, while later payments apply more to principal. Our amortization schedule shows this progression, helping you understand: 1) How much equity you'll build each year 2) The true cost of your loan 3) How extra payments can shorten your loan term and save interest.

Our calculator works for conventional fixed-rate mortgages, which are the most common. While it can provide estimates for other loan types (FHA, VA, USDA), these may have different fee structures or insurance requirements that affect total costs. For adjustable-rate mortgages (ARMs), use the initial fixed-rate period for calculations, understanding payments may change later.