Mortgage Rate Calculator
Buying a home is likely the most significant financial commitment you will ever make. Whether you are a first-time homebuyer or looking to refinance in today’s shifting market, the first step is always the same: understanding the numbers.
Our Mortgage Rate Calculator is designed to provide you with an instant, transparent look at your potential monthly obligations. By adjusting variables like your down payment and interest rate, you can visualize how small changes in your loan structure can save you tens of thousands of dollars over the life of your loan.
Monthly Payment Breakdown (First Month)
Loan Balance and Costs Over Time
Amortization Preview (First 12 Months)
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $275.51 | $1,800.00 | $319,724.49 |
| 2 | $277.06 | $1,798.45 | $319,447.42 |
| 3 | $278.62 | $1,796.89 | $319,168.80 |
| 4 | $280.19 | $1,795.32 | $318,888.61 |
| 5 | $281.77 | $1,793.75 | $318,606.85 |
| 6 | $283.35 | $1,792.16 | $318,323.49 |
| 7 | $284.94 | $1,790.57 | $318,038.55 |
| 8 | $286.55 | $1,788.97 | $317,752.00 |
| 9 | $288.16 | $1,787.36 | $317,463.84 |
| 10 | $289.78 | $1,785.73 | $317,174.06 |
| 11 | $291.41 | $1,784.10 | $316,882.66 |
| 12 | $293.05 | $1,782.46 | $316,589.61 |
Mortgage Rate Inputs
Results
Planning estimate based on your inputs. Actual lender quotes and escrow amounts can vary.
How to Read Your Results
The number to focus on for budgeting is Estimated Monthly Payment (all-in). It combines Principal & Interest (P&I) plus Taxes + Insurance / mo (escrow estimate), HOA / mo, and PMI when applicable. Loan Amount is determined by your Home Price and Down Payment, so changing either can move the payment immediately. The longer-term cost shows up in Total Interest (life), which is why even a small rate change can add up over a 30-year term. Estimated Payoff is the month/year your loan reaches a $0 balance based on the amortization schedule.
Planning estimate only. Actual lender pricing depends on credit, loan program, points/fees, property type, and timing.
How to Use This Mortgage Calculator
Navigating mortgage math doesn't have to be daunting. To get the most accurate estimate, you’ll need to input a few key figures. Here is a breakdown of the fields you’ll find in our tool:
- Home Price: The total purchase price of the property.
- Down Payment: The cash you pay upfront. A higher down payment reduces your loan balance and may help you secure a lower interest rate.
- Interest Rate: The percentage the lender charges you to borrow the money. Even a 0.25% difference can drastically change your long-term costs.
- Loan Term: The duration of the loan (typically 15 or 30 years).
- Property Taxes & Insurance: Often overlooked, these are critical components of your "out-of-pocket" monthly cost.
- HOA Fees: If you are buying a condo or a home in a planned community, include these monthly dues to ensure your budget is realistic.
- Private Mortgage Insurance (PMI): If your down payment is less than 20%, lenders usually require PMI. Our calculator helps you account for this added monthly expense.
Current Mortgage Rate Trends in 2026
As we move through 2026, the mortgage landscape continues to evolve. After the volatility of previous years, the market has entered a period of "cautious stabilization."
The 2026 Outlook
Currently, the 30-year fixed-rate mortgage is averaging approximately 6.6%. While this is higher than the historic lows of the early 2020s, it represents a more sustainable "new normal" for the housing economy.
- Inflation Impact: As the Federal Reserve manages inflation targets, mortgage rates have shown a high correlation with 10-year Treasury yields.
- Inventory Levels: While rates have stabilized, low housing inventory continues to put upward pressure on home prices, making the Mortgage Rate Calculator an essential tool for determining "bid power" in competitive markets.
- Refinance Opportunities: For those who purchased homes during the peak rate spikes of 2023-2024, 2026 is becoming a prime year for "rate-and-term" refinances as rates dip below previous highs.
Understanding Your Total Monthly Payment (PITI)
When people talk about their mortgage payment, they often focus solely on the loan itself. However, your actual check to the bank is usually comprised of four distinct elements, commonly known as PITI.
This is the portion of your payment that goes directly toward paying down the original balance of your loan. In the early years of a mortgage, a smaller percentage of your payment goes to principal; as the loan matures, this amount increases.
This is the cost of borrowing the money. Your interest rate determines this amount. Because of amortization, your early payments are interest-heavy, which is why early-career homeowners often feel like their balance isn't dropping as fast as they'd like.
Your local government levies real estate taxes to fund schools, roads, and public services. These are typically held in an escrow account by your lender and paid on your behalf annually or semi-annually.
This includes Homeowners Insurance, which protects your property against damage, and PMI (if applicable). Like taxes, insurance is usually bundled into your monthly mortgage payment via escrow.
When budgeting, always use the PITI figure, not just the Principal and Interest. Neglecting taxes and insurance can leave you with a 20–30% shortfall in your monthly budget.
15-Year vs. 30-Year Mortgage: Which is Right for You?
One of the most important decisions you will make is choosing your loan term. Each has distinct advantages depending on your financial goals.
| Feature | 30-Year Fixed Mortgage | 15-Year Fixed Mortgage |
|---|---|---|
| Monthly Payment | Lower and more manageable | Significantly higher |
| Interest Rate | Generally higher | Generally lower (0.5% - 1.0% less) |
| Total Interest Paid | High (due to longer duration) | Low (can save $100k+) |
| Equity Build-up | Slower | Rapid |
Why choose a 30-year term?
The 30-year mortgage is the gold standard for affordability. It provides the lowest possible monthly payment, allowing you to buy a more expensive home or keep more cash flow available for other investments or emergency funds.
Why choose a 15-year term?
The 15-year mortgage is the gold standard for wealth building. Because the interest rates are lower and the term is shorter, you pay a fraction of the total interest. If your income allows for the higher monthly commitment, a 15-year loan is the fastest way to achieve debt-free homeownership.
Frequently Asked Questions (FAQ)
Interest rates have a multiplicative effect. For example, on a $400,000 loan, an increase of just 1% in your interest rate can increase your monthly payment by nearly $250 and cost you an additional $90,000 in interest over the life of a 30-year loan.
While 20% is the traditional benchmark to avoid PMI, many buyers in 2026 are successful with 3.5% (FHA) or 5% (Conventional) down. However, in a higher-rate environment, putting more money down is a guaranteed "return on investment" because it reduces the amount of interest you accrue.
Our calculator focuses on your recurring monthly payment. Closing costs, which typically range from 2% to 5% of the home price, are upfront costs due at the time of purchase.
Yes, most modern mortgages do not have prepayment penalties. By adding just $100 extra to your principal each month, you can shave years off your 30-year mortgage.
Take the Next Step Toward Homeownership
Visualizing your financial future is the first step toward owning it. Now that you have estimated your payments and understood the market trends of 2026, it’s time to turn those numbers into reality.
Don't leave your mortgage to chance. Get a personalized rate quote from our network of trusted lenders today and lock in your future home.
Get Your Personalized Rate Quote NowDisclaimer: The calculations provided by this tool are estimates for informational purposes only and do not constitute an offer of credit. Actual rates and payments may vary based on credit score, loan type, and lender requirements.