$350,000
6.90% p.a.
30 years (360 months)
Private Mortgage Insurance (PMI)
If your down payment is less than 20%, PMI of 0.3–1.5% annually is typically required. This is not included in the calculation above.
Monthly Payment
$2,305
per month for 30 years
$2,305
fixed rate
$479,836.17
over 360 months
$829,836.17
principal + interest
May 2056
360 months
137.10%
interest ÷ principal
How to Use the Loan Calculator
Step-by-step guide to calculating your loan payments
Enter Your Loan Amount and Rate
Input the home price and your down payment — the calculator automatically determines the loan amount. Enter the annual interest rate (APR) you have been quoted by your lender.
Choose Your Loan Term
Select a term between 5 and 30 years. The most common US terms are 15 and 30 years. A shorter term means higher monthly payments but less total interest paid.
Add Extra Monthly Payments
Enter any additional amount you plan to pay each month. For conventional loans, there are typically no prepayment penalties, so extra payments go directly toward reducing your principal balance.
Review Your Amortization Schedule
Examine the month-by-month breakdown to see how much of each payment goes to interest versus principal. Export the schedule as a CSV to review in your preferred spreadsheet application.
US Mortgage Tips
Expert advice for navigating the US mortgage market
Remove PMI at 20% Equity
If your down payment is less than 20%, you will pay PMI of 0.3–1.5% of the loan amount per year. Once you reach 20% equity (either through payments or home appreciation), request PMI cancellation. For FHA loans originated after June 2013, PMI lasts for the life of the loan unless you refinance.
Know Conforming vs. Jumbo Loans
Conforming loans meet FHFA limits ($806,500 in 2025 for most areas) and typically offer lower rates. Jumbo loans exceed these limits and usually require higher credit scores, larger down payments, and more cash reserves. Check the conforming limit for your area before applying.
Explore FHA and VA Programs
FHA loans allow down payments as low as 3.5% with credit scores starting at 580, making homeownership accessible for first-time buyers. VA loans offer 0% down and no PMI for eligible veterans and service members. Both programs have specific eligibility requirements and slightly higher rates than conventional loans.
Compare 15-Year vs. 30-Year Fixed
A 15-year fixed rate is typically 0.5–1% lower than a 30-year rate, and you pay roughly half the total interest. However, the monthly payment can be 40–50% higher. Use the comparison tool to see the exact trade-off for your loan amount and decide based on your budget and financial goals.
Understand APR vs. Interest Rate
The interest rate is the cost of borrowing the principal, while the APR includes the rate plus lender fees, closing costs, and mortgage insurance. A loan with a lower rate but high fees could have a higher APR than a loan with a slightly higher rate and lower fees. Always compare APRs when evaluating loan offers.
Deduct Mortgage Interest on Taxes
If you itemize deductions, you can deduct mortgage interest on loans up to $750,000 ($375,000 if married filing separately). This deduction can significantly reduce your effective borrowing cost, especially in the early years when interest payments are highest. Consult a tax professional for your specific situation.
US Mortgage FAQ
Answers to common questions about the US mortgage market
US Mortgage Glossary
Key mortgage terms explained in plain English
PMI (Private Mortgage Insurance)
Insurance required on conventional loans with less than 20% down, typically costing 0.3–1.5% of the loan amount annually. Protects the lender if you default.
APR (Annual Percentage Rate)
The total annual cost of borrowing, including the interest rate plus lender fees, points, and mortgage insurance. A more comprehensive measure than the interest rate alone.
Conforming Loan
A mortgage that meets FHFA loan limits and guidelines, making it eligible for purchase by Fannie Mae and Freddie Mac. Typically offers lower rates than jumbo loans.
Escrow Account
A separate account held by your mortgage servicer to pay property taxes and homeowners insurance. Funded by a portion of each monthly mortgage payment.
LTV (Loan-to-Value Ratio)
The ratio of your mortgage amount to the home's appraised value. An 80% LTV means you put 20% down. Lower LTV ratios qualify for better rates and avoid PMI.
FHA Loan
A mortgage insured by the Federal Housing Administration, allowing down payments as low as 3.5% with credit scores from 580. Requires both upfront and annual mortgage insurance premiums.
VA Loan
A mortgage guaranteed by the Department of Veterans Affairs, available to eligible veterans, active-duty service members, and surviving spouses. Features 0% down payment and no PMI.
Points (Discount Points)
Optional upfront fees paid to the lender at closing to reduce your interest rate. One point costs 1% of the loan amount and typically lowers the rate by 0.25%. Worth considering if you plan to stay in the home long enough to recoup the cost.