How to calculate your mortgage

Whether you're a first-time homebuyer or looking to refinance, understanding how your mortgage payments are calculated can help you make informed decisions about your finances.

Topics covered:

This video gives a basic walkthrough on how to calculate a monthly mortgage payment on a fixed-rate mortgage based on:

  • loan type (Conventional, FHA, VA, or Conventional),

  • term length (15, 20, 30, etc.),

  • mortgage note interest rate (note: this is NOT the same as APR, though it is related to it)

  • Mortgage insurance (PMI, MIP or Guarantee)

    • PMI = Private Mortgage Insurance; only used in Conventional mortgage loans

    • MIP = Mortgage Insurance Premium; only used in FHA mortgage loans

    • Guarantee = USDA mortgage loan’s extra charge on a monthly payment that functions similarly to PMI or MIP

  • homeowner's insurance (AKA "hazard insurance"),

  • property (county) taxes,

  • HOA (homeowner's association) dues.

Check out the video on how to calculate your mortgage payment on YouTube here:

Lastly, remember, there are other costs to owning a home outside of your mortgage, including:

  • monthly utility bills

  • maintenance

  • repair

Questions? Get in touch

There is a lot to calculating mortgage payments, and we are happy to help!

Check out all our mortgage calculators here:

  • Rent vs. Buy Calculator

  • Should I Refinance?

    Use this calculator to determine if refinancing is the right option for you. Estimate the amount of money refinancing your mortgage could save you by comparing your current loan with different variables on a new loan including interest rates, loan terms, cash out, etc.

  • Early Mortgage Payoff Calculator

    Use this calculator to quickly estimate your monthly payment and view the amortization schedule. Optional fields include taxes, insurance, HOA dues and PMI. This is an excellent calculator to bookmark if you're house shopping.

  • Mortgage Payment Calculator w/ Amortization

    Use this calculator to quickly estimate your monthly payment and view the amortization schedule. Optional fields include taxes, insurance, HOA dues and PMI. This is an excellent calculator to bookmark if you're house shopping.

  • Mortgage Loan Comparison

    Compare two separate mortgage scenarios to find the most suitable option for your budget. Examples: Compare the total interest paid, monthly payments for different interest rates, monthly payments for different loan terms, etc.

  • Advanced Loan Comparison Calculator