đ Mortgage Calculator v2.0
Calculate your monthly payment + Check if you can truly afford it + See maintenance costs!
đ Loan Details
đ° Your Results
Monthly Payment (PITI)
Principal & Interest
Property Tax
Home Insurance
PMI + HOA
Maintenance
Total Loan Amount
Total Interest
Total Cost
Enter Your Loan Details
Fill in the form and click "Calculate" to see:
â
Your true monthly cost (with maintenance)
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Affordability check (can you really afford it?)
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Extra payment savings in dollars
How to Use This Mortgage Calculator
Our enhanced mortgage calculator helps you estimate your monthly mortgage payment AND tells you if you can truly afford it. Unlike other calculators, we include maintenance costs and provide an affordability reality check based on the 28% rule.
Step-by-Step Guide
- Enter Home Price: The total purchase price of the property
- Down Payment: Amount you'll pay upfront (20% or more avoids PMI)
- Loan Term: Length of your mortgage (15 years saves interest, 30 years has lower payments)
- Interest Rate: Annual percentage rate (APR) offered by your lender
- Monthly Income (Optional): Enter this to see if the payment fits your budget (28% rule)
- Add Optional Costs: Property taxes, insurance, PMI, HOA, and maintenance for complete accuracy
- Calculate: Click the button to see your results + affordability check
Understanding Your True Monthly Cost
Your complete monthly housing cost includes more than just PITI (Principal, Interest, Taxes, Insurance). Most people forget about maintenance, which typically costs 1% of your home's value annually.
What's Included:
- Principal & Interest (P&I): Your actual loan payment
- Property Taxes: Typically 1-2% of home value annually
- Home Insurance: Protects your property ($1,200-2,000/year average)
- PMI: Required if down payment < 20% (0.5-1% of loan annually)
- HOA Fees: Monthly fees for condos and planned communities
- đ Maintenance: Often forgotten! Budget 1% of home value annually for repairs and upkeep
The 28% Rule: Can You Truly Afford It?
Financial experts recommend your total monthly housing payment (PITI) should not exceed 28% of your gross monthly income. This is called the "front-end ratio."
Why 28%?
This rule ensures you have enough money left for:
- Other debt payments (car loans, credit cards, student loans)
- Emergency fund and savings
- Daily living expenses (food, utilities, transportation)
- Quality of life (entertainment, vacations, hobbies)
- Unexpected expenses
What Happens if You Exceed 28%?
You risk becoming "house poor" - where most of your income goes to your mortgage, leaving little for everything else. Reddit users frequently share stories of regret after buying homes they technically qualified for but couldn't comfortably afford.
Use Our Affordability Calculator
Enter your monthly gross income in the calculator above. We'll tell you if your payment is safe (under 28%), borderline (28-36%), or risky (over 36%). Be honest with yourself - your future financial peace depends on it!
The Power of Extra Payments (In Dollars, Not Just Months!)
Most calculators show you'll "pay off early" but don't show how much money you'll save. Here's the truth:
Real Example: $300,000 Loan at 6.5% for 30 Years
- No Extra Payment: Pay $382,633 in interest over 30 years
- $100/month Extra: Save $68,475 in interest! (Paid off in 25.5 years)
- $200/month Extra: Save $121,561 in interest! (Paid off in 22 years)
- $500/month Extra: Save $214,071 in interest! (Paid off in 15.5 years)
Easy Ways to Make Extra Payments:
- Round Up: If your payment is $1,517, round to $1,600 (saves $34,000+)
- Bi-Weekly Payments: Pay half your monthly payment every two weeks = 13 payments per year
- Annual Lump Sum: Use tax refunds or bonuses to make extra payments once a year
- Salary Increases: When you get a raise, put the extra income toward your mortgage
15-Year vs 30-Year: The Truth About Savings
Side-by-Side Comparison on $300,000 Loan:
| Loan Term | Monthly Payment | Total Interest | đ° You Save |
|---|---|---|---|
| 30-Year (6.5%) | $1,896 | $382,633 | Baseline |
| 15-Year (6.0%) | $2,532 | $155,682 | Save $226,951! |
Which Should You Choose?
Choose 30-Year If:
- You want lower monthly payments and more budget flexibility
- You plan to invest the difference in higher-return investments
- You have other high-interest debt to pay off first
- You're not sure you'll stay in the home long-term
Choose 15-Year If:
- You can comfortably afford the higher payment
- You want to save over $100,000 in interest
- You're approaching retirement and want the mortgage gone
- You prioritize being debt-free quickly
Frequently Asked Questions
How do I know if I can afford a mortgage payment?
Use the 28% rule: your total monthly housing payment (PITI + maintenance) should not exceed 28% of your gross monthly income. For example, if you earn $6,000/month, your total housing cost should be under $1,680. Our calculator automatically checks this for you when you enter your income.
Why do other calculators give different results?
Many calculators skip important costs like maintenance, use different default values for taxes and insurance, or don't calculate PMI correctly. Our calculator is comprehensive and honest - we include ALL costs so you know your real monthly expense.
Should I include maintenance costs?
Absolutely! Maintenance is a real cost you'll pay, typically 1% of your home's value per year. On a $300,000 home, that's $3,000/year or $250/month. Over 30 years, it adds up to $90,000. Don't let this surprise you - budget for it from day one.
How much will I actually save with extra payments?
Our calculator shows you the exact dollar amount you'll save. For example, on a $300,000 loan at 6.5%, paying an extra $200/month saves you $121,561 in interest and pays off your loan 8 years early. That's real money you can use for retirement, investments, or other goals!
What's the difference between being qualified vs comfortable?
Banks might qualify you for a payment that's 36-43% of your income, but you'll likely struggle at that level. Just because you CAN get approved doesn't mean you SHOULD borrow that much. Stay under 28% for financial comfort and peace of mind.
Should I put 20% down or invest the money instead?
Putting 20% down eliminates PMI (saving 0.5-1% annually) and may get you a better interest rate. However, if you can invest the money and earn more than your mortgage rate + PMI cost, investing might be better. Consider your risk tolerance, emergency fund, and overall financial situation.
How accurate is this calculator?
Our calculator is highly accurate and includes more costs than most competitors. However, your actual payment may vary slightly based on your specific lender fees, exact tax rates, insurance premiums, and closing costs. Use this for budgeting and planning, then get official quotes from lenders for exact figures.
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Ready to Buy Your Dream Home?
Use our enhanced calculator to see your TRUE monthly cost and check if you can really afford it!