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Mortgage Loan Calculator: How Much Can You Afford?

Mortgage Loan Calculator: How Much Can You Afford?

Buying a house is one of the most expensive investments you can make, so it is very important to determine how much you can spend on the home-buying process. You should start by evaluating how much money you have flowing in—your investments, monthly earnings, and any other sources of income—versus how much money you are using to meet obligations like school loans, credit card bills, and auto payments. Read on to learn how you can calculate your mortgage payment using our mortgage loan calculator.

What is a Mortgage Loan Calculator?

Whether you’re buying a new home or refinancing your existing one, a mortgage loan calculator can assist you in better understanding your financing options. A mortgage calculator will do the math for you, including fees, interest, mortgage insurance, and property tax. The results will show you your estimated monthly payment and assist you in determining if you can afford the house you desire.

How Do You Calculate Your Mortgage Payment?

A mortgage payment typically includes the following costs:


This is the money you obtained from the lender to purchase your home. A percentage of each monthly payment is applied to the principal balance of your loan, lowering your total debt.


Interest payments are made straight to the lender and do not reduce your principal amount. Your mortgage rate dictates how much you pay the lender to fund your loan.

Property Taxes

Property taxes are paid once or twice a year, but they can be incorporated into your monthly payments via an escrow account. If your local tax rate or assessed property value grows, the amount you pay in property taxes may rise over time.

Homeowners’ Insurance

It protects you financially in the event of an accident or disaster in your house. Your monthly mortgage payment will typically include a percentage of your biannual or yearly insurance premium, which is deposited into an escrow account and paid by your creditor when it is due.

Private Mortgage Insurance

If your down payment is much less than 20% of the purchase price, you will most probably be required to pay mortgage insurance, which is applied to your monthly payment.

How to Use Our Mortgage Calculator?

Calculating your monthly mortgage payment is made easier with the help of our mortgage calculator. Here’s how it works:

  • Input the loan amount: Subtract your down payment from the property’s purchase price to arrive at this number.
  • Select a loan term: Homebuyers frequently choose 30-year fixed-rate mortgages because they stretch out lower monthly payments over a longer time frame.
  • Compute your interest rate: Analyze mortgage rates to have a better understanding of the current rate scenario. This includes the type of loan you have as well as the payback period, loan size, loan-to-value ratio, and your credit.
  • Check your mortgage summary: To view your projected mortgage calculations, click on the “Monthly Breakdown” or “Amortization Schedule” option.
  • Consider other expenditures: Once you’ve determined your projected payment, you can consider additional fees involved with home ownership, such as yearly insurance, taxes, and PMI (Private Mortgage Insurance). If your down payment is less than 20%, you will usually be required to pay PMI.
  • Play with the numbers: If you want to keep your mortgage payment below a specific number, you can adjust the loan conditions.

Get Started in Less Than 10 Minutes

Get pre-approved with our online mortgage application. It’s simple, fast & secure!