Using Our Mortgage Payment Calculator
It’s important to ensure the home you’re buying aligns with your budget and financial goals. Using our mortgage payment calculator is easy and helps you determine how much of a home you can financially manage. Play around with different interest rates, loan terms and down payment scenarios to find the best combination for your budget and future goals.
Basic Mortgage Calculator
Use the basic mortgage calculator to figure out your total monthly mortgage payment without considering the annual property taxes or homeowners insurance premiums.
Enter the following information:
- Purchase price. The price you’re willing to pay for your new home.
- Down payment. The cash you plan to deposit toward the purchase of the home. The larger your down payment, the less loan you’ll require.
- Term. The period of your home loan, generally measured in years. Mortgage loan terms are typically 15 to 30 years, but Pennymac is proud to offer flex terms. We offer terms of 16 years, 17 years, 18 years and more on most loans.
- Interest rate. The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of money.
Advanced Results
For more accurate results, input all the information in the basic calculator, then switch to the “Advanced” tab and add the following:
- Annual property taxes. A tax assessed on real estate by the local government, usually based on the value of the property (including the land) you own.
- Annual homeowners insurance premiums. Usually required by lenders, homeowners insurance protects the homeowner from weather-related damage, as well as potential liability from events that occur on the property.
Understanding Your Mortgage Calculator Results
Your total payment is displayed at the top. For more detailed results, look at the “Breakdown,” “Over time” and “Amortization” sections.
Breakdown
This section breaks down your monthly payment by the following:
- Principal and interest. This amount, indicated in blue, includes the principal, which is the amount of money you’ll borrow. For example, if your home costs $500,000 and you borrow $350,000, your mortgage will be $350,000. This section also includes the amount of monthly interest you’ll be paying based on the rate and term of your home loan.
- Private mortgage insurance (PMI). If you input a down payment of less than 20%, you’ll see private mortgage insurance included, depicted in yellow. PMI is a policy that protects your lender and is generally required for conventional loans if you don’t put a minimum of 20% down.
- Property taxes and homeowners insurance. Your payment breakdown will also include your property taxes and homeowners insurance premiums if you choose to input those figures.
Typically, property taxes and homeowners insurance are factored into the monthly payment through an escrow account, so adding those figures will give you the best estimate of what you may be expected to pay. Keep in mind that property taxes and homeowners insurance premiums can change and often increase every year. Also take into account any HOA or condo dues. These types of dues can easily add a couple hundred dollars or more to your mortgage payment, and they must be factored into your debt-to-income ratio (DTI).
Over Time
Over time is a view of how much of your monthly payment will go toward principal vs. interest throughout the years. More of your payment will be applied to your principal as you get closer to the end of your mortgage term.
Amortization
The amortization section shows your amortization schedule, a table listing all your scheduled payments throughout your loan term. Get a month-by-month look at your payment, remaining balance, principal and interest paid, and cumulative interest paid.
What Is a Mortgage?
A mortgage is a loan secured against real property, where the property—or home—is collateral. It’s a legal agreement between a lender and the borrower. A mortgage allows a homeowner to pay back the lender in installments over an agreed-upon time period (the term) and interest rate.
How Do I Get a Mortgage?
Getting a mortgage requires applying to a lender. But first, it’s a good idea to determine your budget and the amount you’ll be qualified to borrow. Check out the Pennymac Mortgage Blog for info to help save you money, time and peace of mind during the mortgage process.
How Much Is a Down Payment?
Your down payment amount depends on a few factors. A home down payment of 20% of the purchase price is typically recommended, since this will help you avoid paying private mortgage insurance. But first-time homebuyers may be able to put down less, while certain loan types, such as FHA loans, may have different down payment requirements.
What’s Included in My Mortgage Payment?
A mortgage payment typically includes your loan principal, interest, property taxes and homeowners insurance premium.
Get Your Instant Mortgage Rate Quote
Know how much you can afford? Ready to see your personalized home loan rate? Get a mortgage rate quote in seconds!
FAQs
For example, if your interest rate is 6 percent, you would divide 0.06 by 12 to get a monthly rate of 0.005. You would then multiply this number by the amount of your loan to calculate your loan payment. If your loan amount is $100,000, you would multiply $100,000 by 0.005 for a monthly payment of $500.
What is the monthly payment on a $300000 mortgage for 30 years? ›
Your monthly payment depends on several factors, including the mortgage rate. For example, if you borrow $300,000 in a 30-year fixed-rate mortgage at 6.5% interest, your monthly payment would be $1,896.20 (not including escrow costs). At 8% interest, the payment would be $2,201.29.
How much would a $500000 mortgage cost per month? ›
The mortgage on a $500,000 house is $2,952 per month toward your mortgage principal and mortgage interest, assuming a 6.86% interest rate and a 30-year fixed term with 10% down.
How big of a mortgage can I afford based on monthly payment? ›
For example, the 28/36 rule suggests your housing costs should be limited to 28 percent of your total monthly gross income and 36 percent of your total debt. The mortgage affordability calculator above can help refine and tailor the estimate of how much house you can afford based on multiple factors.
What is the formula for calculating monthly payments? ›
Monthly Payment = (P × r) ∕ n
Again, “P” represents your principal amount, and “r” is your APR. However, “n” in this equation is the number of payments you'll make over a year. Now for an example. Let's say you get an interest-only personal loan for $10,000 with an APR of 3.5% and a 60-month repayment term.
How much is a 200k mortgage per month? ›
For a $200,000, 30-year mortgage with a 6% interest rate, you'd pay around $1,199 per month. But the exact cost of your mortgage will depend on its length and the rate you get.
Can I afford a 300k house on a 70K salary? ›
The house you can afford on a $70K income will likely be between $290,000 to $310,000. Aside from your gross monthly income, lenders look at your credit report, down payment, monthly debt payments (including car payments and personal loans), and your estimated mortgage rate, among other things.
Can I afford a 300k house on a 60k salary? ›
An individual earning $60,000 a year may buy a home worth ranging from $180,000 to over $300,000. That's because your wage isn't the only factor that affects your house purchase budget. Your credit score, existing debts, mortgage rates, and a variety of other considerations must all be taken into account.
What credit score is needed to buy a $300k house? ›
Credit Score
For a $300,000 home, you'll likely need a good credit score: 740+: Best rates and terms. 700-739: Slightly higher rates. 660-699: Higher rates, may require larger down payment.
Can I afford a 500K house on 100k salary? ›
That monthly payment comes to $36,000 annually. Applying the 28/36 rule, which states that you shouldn't spend more than around a third of your income on housing, multiply $36,000 by three and you get $108,000. So to afford a $500K house you'd have to make at least $108,000 per year.
To afford a $500,000 house, you typically need an annual income between $125,000 to $160,000, which translates to a gross monthly income of approximately $10,417 to $13,333, depending on your financial situation, down payment, credit score, and current market conditions.
How much is $2,000 a month mortgage? ›
With $2,000 per month to spend on your mortgage payment, you are likely to qualify for a home with a purchase price between $250,000 to $300,000, said Matt Ward, a real estate agent in Nashville. Ward also points out that other financial factors will impact your home purchase budget.
How much house can I afford if I make $36,000 a year? ›
On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.
What is the 28 36 rule? ›
According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment. Homeowners Insurance.
What is considered a high monthly house payment? ›
In Hawaii and California—the two states where average payments are above $3,000—households are spending 40% and 34%, respectively, of their average monthly income on housing. Most financial experts advise households not to spend more than 30% of their monthly income on housing.
Which formula should be used to correctly calculate the monthly mortgage payment? ›
The correct formula to calculate the monthly mortgage payment is m = p * (r * (1 + r)^n) / ((1 + r)^n - 1). This formula considers the principal amount, monthly interest rate, and the total number of payments to determine the fixed monthly payment required to repay the mortgage loan over the specified period.
What is the formula for PMT? ›
For loans, the PMT function in XLS can be used to calculate the monthly payment. The mathematical formula for this PMT function is P = (Pv*R) / [1 - (1 + R)^(-n)] . Therefore, for a loan of $10,000 at an interest rate of 10% per annum, to be paid in one year, the result using PMT function is $879.16.
How to calculate mortgage repayments formula? ›
To calculate monthly mortgage repayments, the formula is:
- M = P x [r x (1+r)^n] ÷ [(1+r)^n – 1]
- M: Monthly mortgage repayment amount.
- P: Principal (your total loan amount)
- r: Monthly interest rate (your annual rate, divided by 12 months)
- n: The total number of monthly payments (your loan term multiplied by 12 months)
How Is My Interest Payment Calculated? Lenders multiply your outstanding balance by your annual interest rate, but divide by 12 because you're making monthly payments.
