Comprehensive Guide to Your Mortgage
A mortgage is likely the largest financial commitment you will ever make. Our professional mortgage calculator uses the exact amortization mathematical models employed by major US and European banks to help you forecast your financial future with precision.
How to Use This Tool
- Home Price: The total agreed-upon purchase price of the real estate.
- Down Payment: The upfront cash you provide. A standard down payment is 20%, which typically allows you to avoid paying Private Mortgage Insurance (PMI).
- Interest Rate: The annual cost of borrowing money from your lender. Even a 0.5% difference can mean tens of thousands of dollars over the life of a loan.
Frequently Asked Questions
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance. Our calculator computes the Principal and Interest. When budgeting, remember that your actual monthly check to the bank will be higher because it will include local property taxes and homeowners insurance.
15-Year vs. 30-Year Mortgage: Which is Better?
A 30-year term is the industry standard because it spreads the debt over a longer period, resulting in a lower, more manageable monthly payment. A 15-year term will have significantly higher monthly payments, but you will own your home outright in half the time and save a massive amount on total interest paid.