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
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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? ›
What Is the Monthly Payment of a $300,000 Mortgage? A mortgage of $300,000 will cost you $3,255.79 per month in interest and principal for a 30-year loan and a fixed 7.2% interest rate. The monthly payment will increase if you include taxes, mortgage insurance, and other fees.
How much would a $500000 mortgage cost per month? ›
Estimated Monthly Payments on a $500K Mortgage
As noted above, your estimated monthly payment for a $500K mortgage will be $3,360.16, assuming a 30-year loan term and an interest rate of 7.1%. But this payment could range between $2,600 and $4,900 depending on your term and interest rate.
How big of a mortgage can I afford based on monthly payment? ›
The rule states that your mortgage should be no more than 28 percent of your total monthly gross income and no more than 36 percent of your total debt. But our chase home affordability calculator can help refine and tailor the estimate of how much house you can afford based on additional factors.
What income do you need for a $600000 mortgage? ›
To comfortably afford a $600k mortgage, you'll likely need an annual income between $150,000 to $200,000, depending on your specific financial situation and the terms of your mortgage. Remember, just because you can qualify for a loan doesn't mean you should stretch your budget to the maximum.
How much house can I afford if I make $70,000 a year? ›
With a $70,000 annual salary and using a 50% DTI, your home buying budget could potentially afford a house priced between $180,000 to $280,000, depending on your financial situation, credit score, and current market conditions.
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? ›
What credit score is needed to buy a $300K house? The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.
How much income do I need for a 300K mortgage? ›
To purchase a $300K house, you may need to make between $50,000 and $74,500 a year. This is a rule of thumb, and the specific annual salary will vary depending on your credit score, debt-to-income ratio, type of home loan, loan term, and mortgage rate. Homeownership costs like HOA fees can also impact affordability.
How much income do you need for a $500000 mortgage? ›
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.
Will interest rates go down in 2024? As of July 2024, CBA and Westpac expect the RBA to start cutting rates in November. However, ANZ and NAB are forecasting the first rate cut in February 2025 and May 2025 respectively.
How much would a $400,000 mortgage cost per month? ›
Monthly payments for a $400,000 mortgage
On a $400,000 mortgage with an interest rate of 6%, your monthly payment would be $2,398 for a 30-year loan and $3,375 for a 15-year one.
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. Private mortgage insurance.
How much mortgage can I afford if I make $60000 a year? ›
With a $60,000 annual salary, you could potentially afford a house priced between $180,000 to $250,000, depending on your financial situation, credit score, and current market conditions. However, this range can vary significantly based on several factors we'll discuss.
What is the formula for the monthly payment? ›
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.
What is the formula for calculating monthly repayments? ›
Step 1: Convert your annual interest rate to a monthly rate by dividing by 12. Step 2: Multiply your loan amount by your monthly interest rate to get your monthly interest payment. Step 3:To calculate your monthly principal payment, subtract your monthly interest payment from your total monthly payment.
How to calculate monthly installments? ›
Installment Loan Payment Formula
Use the formula P (r(1+r)^n)/((1+r)^n-1) to calculate your payment for each month. “P” is the amount of the loan (which is called the principal), “r” is your interest rate, and “n” is your number of payments.
How do you calculate monthly interest payments on a mortgage? ›
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.
