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? ›
Monthly payments for a $300,000 mortgage
| Annual Percentage Rate (APR) | Monthly payment (15-year) | Monthly payment (30-year) |
|---|
| 6.00% | $2,531.57 | $1,798.65 |
| 6.25% | $2,572.27 | $1,896.20 |
| 6.50% | $2,613.32 | $1,896.20 |
| 6.75% | $2,654.73 | $1,945.79 |
5 more rowsAs 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 much is the monthly payment on a 350 000 mortgage? ›
Monthly payments for a $350,000 mortgage
| Annual Percentage Rate (APR) | Monthly payment(15-year) | Monthly payment(30-year) |
|---|
| 6.25% | $3,000.98 | $2,155.01 |
| 6.50% | $3,048.88 | $2,212.24 |
| 6.75% | $3,097.18 | $2,270.09 |
| 7.00% | $3,145.90 | $2,328.56 |
5 more rowsThe formula is: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1], where M is the monthly payment, P is the loan amount, i is the interest rate (divided by 12) and n is the number of monthly payments.
How much is a 150000 mortgage per month? ›
How to calculate the monthly payment on a £150,000 mortgage
| Term | 2.5% | 3.5% |
|---|
| 20 years | £795 | £870 |
| 25 years | £673 | £751 |
| 30 years | £593 | £593 |
| 35 years | £536 | £620 |
2 more rowsAn 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 house can I afford if I make $70,000 a year? ›
One rule of thumb is that the cost of your home should not exceed three times your income. On a salary of $70k, that would be $210,000. This is only one way to estimate your budget, however, and it assumes that you don't have a lot of other debts.
What income do you need for a $500000 mortgage? ›
In today's climate, the income required to purchase a $500,000 home varies greatly based on personal finances, down payment amount, and interest rate. However, assuming a market rate of 7% and a 10% down payment, your household income would need to be about $128,000 to afford a $500,000 home.
However, borrowers shouldn't expect huge drops. Rates may trend down closer to 6% throughout the remainder of 2024, but we may not see them reach the 5% range until 2025 or even 2026.
How much is $2,000 a month mortgage? ›
With $2,000 per month to spend on your mortgage payment, you are likely to qualify for a home with a purchase price between $250,000 to $300,000, said Matt Ward, a real estate agent in Nashville. Ward also points out that other financial factors will impact your home purchase budget.
Can I afford a 350k house making 50k a year? ›
A person who makes $50,000 a year might be able to afford a house worth anywhere from $180,000 to nearly $300,000. That's because your annual salary isn't the only variable that determines your home buying budget. You also have to consider your credit score, current debts, mortgage rates, and many other factors.
How much is a 20% down payment on a $350 000 house? ›
To make a 20% down payment on a property with a $350,000 mortgage, you would need $87,500. Many buyers make lower down payments, however. Some as low as 3%.
How much do I need to make to get approved for a 300 000 mortgage? ›
With a 5% down payment and an interest rate of 7.158% (the average at the time of writing), you will want to earn at least $6,644 per month – $79,728 per year – to buy a $300,000 house. This is based on an estimated monthly mortgage payment of $2,392.
What is the formula for calculating monthly repayments? ›
To use this formula, divide your interest rate by the number of payments you make in a year (usually 12). Multiply this result by your principal to find out your monthly loan payment.
What is the monthly payment on a $400,000 mortgage? ›
For example, on a $400K mortgage with a 7% fixed rate, the monthly payment on a 15-year loan is $3,595. The payment on a 30-year loan, by comparison, is $2,661. Just keep in mind that neither amount factors in the cost of insurance or property taxes, which will both be included in your monthly payment.
How much is a 200K mortgage per month? ›
Term Length And A $200K Mortgage
Let's look at an example of how your loan term affects your mortgage payment. At a 7% interest rate, a 30-year fixed $200K mortgage has a monthly payment amount of $1,331, while a 15-year fixed $200K mortgage at the same interest rate has a monthly payment amount of $1,798.
What is the monthly payment on a $600000 mortgage? ›
Monthly payments on a $600,000 mortgage
At a 7.00% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $3,992 a month, while a 15-year might cost $5,393 a month.
