Mortgage Calculator with Amortization Schedule
Estimate your monthly mortgage payments including principal, interest, property taxes, and homeowners insurance (PITI). View a complete amortization schedule showing how each payment breaks down over the loan term.
Monthly Payment Breakdown
Amortization Schedule (First 12 Payments)
| Payment # | Principal | Interest | Remaining Balance |
|---|
How Mortgage Payments Are Calculated
A mortgage payment consists of four main components, often called PITI:
- Principal: The amount you borrowed that goes toward paying down the loan balance
- Interest: The cost of borrowing money, calculated based on your remaining loan balance
- Taxes: Annual property taxes divided into monthly payments, held in escrow
- Insurance: Homeowners insurance premiums, also escrowed monthly
15-Year vs 30-Year Mortgage: Which Is Better?
The 30-year mortgage offers lower monthly payments but costs significantly more in total interest. A 15-year mortgage has higher payments but saves tens of thousands in interest. For example, on a $300,000 loan at 6.5%:
- 30-year: ~$1,896/month | Total interest: ~$382,000
- 15-year: ~$2,613/month | Total interest: ~$170,000
Savings with 15-year: ~$212,000 in interest! However, the higher monthly payment must fit your budget. Many homeowners choose a 30-year mortgage for flexibility and make extra payments when possible.
How Much Down Payment Do You Need?
Conventional loans typically require 20% down to avoid Private Mortgage Insurance (PMI). FHA loans allow as little as 3.5% down, but require mortgage insurance for the entire loan term. Putting down more than 20% reduces your loan-to-value ratio (LTV) and may qualify you for better interest rates.
Mortgage FAQ
For conventional loans, most lenders require a minimum 620 FICO score. FHA loans may accept scores as low as 580 with 3.5% down, or 500 with 10% down. The best rates go to borrowers with 740+ credit scores.
Most conventional mortgages allow early repayment without prepayment penalties. However, some loans have prepayment penalties during the first 3-5 years. Always check your loan terms. Making just one extra payment per year can shave 4-5 years off a 30-year mortgage.
Property taxes typically range from 0.5% to 2.5% of home value annually, varying by state. Homeowners insurance averages $1,200-$2,500/year. These costs are added to your monthly payment and held in an escrow account, then paid by your lender when due.