Mortgage Calculator

How Mortgage Payments Work

Your monthly mortgage payment typically includes four components, known as PITI: Principal, Interest, Taxes, and Insurance.

Mortgage Payment Formula

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where: M = Monthly payment, P = Principal (loan amount), r = Monthly interest rate, n = Total number of payments

Tips for Lowering Your Payment

• Increase your down payment to reduce the loan amount
• Shop around for the best interest rate — even 0.25% matters
• Consider a shorter term for less total interest paid
• Improve your credit score before applying
• Look into first-time homebuyer programs and grants