Latest Mortgage Rates

• 30-Year Fixed: 6.248%

• 15-Year Fixed: 5.304%

• 10-Year Fixed: 5.164%

See your local rates or get pre-approval to find the best mortgage deal for your situation.

Amortisation Schedule

The amortisation schedule provides a detailed breakdown of how your mortgage payments are divided between principal and interest over time. It helps you understand how your loan balance decreases throughout the term.

You can view it as:

• Annual Schedule – Summarised by year

• Monthly Schedule – Detailed month-by-month report

Example:

You can also download a complete repayment schedule in CSV format for detailed record-keeping or analysis.

About the Mortgage Calculator

The Mortgage Calculator helps you estimate your monthly home loan payments, including principal, interest, property taxes, insurance, PMI, and HOA fees. You can also include extra payments or annual increases to simulate real-life financial planning.

It’s designed primarily for U.S. residents but useful for anyone wanting to understand mortgage repayment structures.

Understanding Mortgages

A mortgage is a type of loan used to purchase real estate. The lender pays the seller on your behalf, and you repay the borrowed amount (the principal) with interest over time—typically 15 or 30 years.

In most U.S. cases, a 30-year fixed-rate mortgage is the standard, representing 70–90% of all loans. Monthly payments include both principal and interest, and in many cases, an escrow account to cover property taxes and insurance.

Main Components of a Mortgage

1. Loan Amount—The amount borrowed (purchase price minus down payment).

2. Down Payment—Usually 3–20% of the home price; a higher down payment reduces interest and may eliminate PMI.

3. Loan Term – Commonly 15, 20, or 30 years. Shorter terms often mean lower rates.

4. Interest Rate—The cost of borrowing money, either fixed or adjustable (ARM).

Homeownership Costs

Owning a home involves more than just mortgage payments. Costs fall into recurring and non-recurring types:

Recurring Costs

• Property Taxes – Typically around 1.1% of the property’s value annually.

• Home Insurance—Protects your home from damage or liability.

• PMI (Private Mortgage Insurance)—Required if down payment < 20%.

• HOA Fees – Maintenance costs for communities or condominiums.

• Maintenance Costs – Average 1% of home value yearly.

Non-Recurring Costs

• Closing Costs—Legal, appraisal, and administrative fees (usually 2–5% of home price).

• Initial Renovations—Optional upgrades before moving in.

• Moving & Furnishing Costs—Transport, furniture, and setup expenses.

Early Repayment & Extra Payments

Paying your mortgage early or adding extra payments can:

• Save significant interest over time.

• Shorten the loan term.

• Increase home equity faster.

Methods include:

• Making extra monthly or annual payments

• Switching to biweekly payments (13 payments per year)

• Refinancing to a shorter-term loan

However, be aware of:

• Possible prepayment penalties

• Opportunity costs if you could earn more by investing elsewhere

• Reduced tax deductions on mortgage interest                                     

  Understanding Mortgage Loans and Home Ownership Costs

  Buying a home is one of the biggest financial decisions most people make. A mortgage calculator helps estimate monthly payments, but to use it effectively, it’s important to understand the key terms and costs involved in a home loan.

  ---

  Key Mortgage Terms Explained

  Loan Amount

  The loan amount is the money borrowed from a lender or bank. For a mortgage, this is usually the home’s purchase price minus any down payment. The maximum loan amount a borrower can qualify for depends on income, expenses, credit profile, and overall affordability. To get a clearer estimate, many buyers use a house affordability calculator before applying for a loan.

  ---

  Down Payment

  A down payment is the upfront portion of the home price paid by the buyer. It is typically expressed as a percentage of the total purchase price.

  • Many lenders prefer a 20% down payment, as it lowers risk

  • Some programs allow down payments as low as 3%

  • If the down payment is below 20%, the borrower is usually required to pay private mortgage insurance (PMI)

  PMI protects the lender, not the borrower, and is usually required until the remaining loan balance falls below 80% of the home’s original value. In general, a higher down payment improves approval chances and can lead to better interest rates.

  ---

  Loan Term

  The loan term is the length of time given to repay the mortgage in full. Common fixed-rate mortgage terms are 15, 20, and 30 years.

  • Shorter terms usually have lower interest rates

  • Longer terms offer lower monthly payments but higher total interest over time

  Choosing the right term depends on income stability and long-term financial goals.

  ---

  Interest Rate

  The interest rate is the cost of borrowing money, expressed as a percentage. Mortgages typically come in two forms:

  • Fixed-Rate Mortgages (FRM): The interest rate stays the same throughout the loan

  • Adjustable-Rate Mortgages (ARM): The rate is fixed for an initial period and then adjusts based on market conditions

  Because ARMs shift some risk to borrowers, their starting rates are often lower than fixed rates. Mortgage interest is commonly shown as an Annual Percentage Rate (APR). For example, a 6% APR equals 0.5% interest per month.

  ---

  Costs of Owning a Home

  Monthly mortgage payments are only one part of home ownership. Other costs fall into recurring and non-recurring categories.

  ---

  Recurring Costs (Ongoing Expenses)

  These costs continue throughout the life of the mortgage and often increase over time due to inflation.

  Property Taxes

  Property taxes are paid to local governments and vary by location. In the U.S., homeowners pay an average of about 1.1% of the property’s value per year, though rates differ by state and county.

  ---

  Home Insurance

  Home insurance protects against damage, accidents, and liability claims. Costs depend on location, property condition, and coverage level.

  ---

  Private Mortgage Insurance (PMI)

  PMI is required when the down payment is less than 20%. Annual PMI costs usually range from 0.3% to 1.9% of the loan amount and depend on credit score, loan size, and down payment percentage.

  ---

  HOA Fees

  Some properties—such as condominiums and townhomes—require homeowners association (HOA) fees. These fees cover maintenance and shared services and usually amount to less than 1% of the property’s value annually.

  ---

  Other Ongoing Costs

  Utilities, routine maintenance, and repairs are often overlooked. A common estimate is 1% or more of the home’s value per year for maintenance alone.

  ---

  Non-Recurring Costs (One-Time Expenses)

  These costs are not included in monthly mortgage calculations but are important to plan for.

  Closing Costs

  Closing costs are paid when finalising the home purchase and may include legal fees, appraisals, inspections, taxes, and lender charges. In the U.S., buyers often pay several thousand dollars, depending on the transaction size.

  ---

  Renovations

  Some homeowners renovate before moving in. These expenses vary widely and are optional, depending on personal preference and property condition.

  ---

  Miscellaneous Expenses

  Moving costs, furniture, appliances, and unexpected repairs are common additional expenses during the home-buying process.

  ---

  Early Repayment and Extra Payments

  Some borrowers choose to pay off their mortgage early to reduce interest or gain financial freedom. A mortgage calculator can include extra monthly, yearly, or one-time payments to show how they affect the loan.

  ---

  Common Early Repayment Strategies

  Making Extra Payments

  Any amount paid beyond the required monthly payment reduces the loan balance faster. This lowers interest costs and shortens the loan term.

  ---

  Biweekly Payments

  Paying half the monthly amount every two weeks results in 26 half-payments per year, which equals one extra full payment annually. This method works well for people paid biweekly.

  ---

  Refinancing to a Shorter Term

  Refinancing replaces the existing loan with a new one, often with a shorter term and lower interest rate. While this can save interest, it usually increases monthly payments and includes closing costs.

  ---

  Benefits of Paying a Mortgage Early

  • Reduced total interest paid

  • Faster loan payoff

  • Increased financial security and peace of mind

  ---

  Potential Downsides of Early Repayment

  Prepayment Penalties

  Some loans include penalties for early repayment. These usually decrease over time and are often waived if the home is sold.

  ---

  Opportunity Cost

  Paying off a low-interest mortgage early may not always be the best financial choice if the money could earn higher returns elsewhere.

  ---

  Reduced Liquidity

  Money invested in a home is not easily accessible. Unexpected expenses may require borrowing again.

  ---

  Loss of Tax Benefits

  In the U.S., mortgage interest may be tax-deductible for those who itemise deductions. Paying less interest means a smaller deduction.

  ---

  Final Thoughts

  Understanding mortgage terms, ownership costs, and repayment strategies helps buyers make informed decisions. A mortgage calculator is a useful planning tool, but it works best when combined with a clear understanding of both short-term and long-term financial commitments.

Brief History of Mortgages in the U.S.

In the early 1900s, homebuyers needed large down payments and short-term loans. The Great Depression led to widespread foreclosures, prompting government intervention.

The creation of the FHA and Fannie Mae in the 1930s made long-term, affordable mortgages accessible, revolutionizing home ownership. Post–World War II, these programs helped millions buy homes, boosting the housing market.

Even through financial crises like 2008, government-backed mortgage programs continued to stabilize the housing sector, ensuring more Americans could own homes.     

For affordable and fast hosting, check out Hostinger — our recommended hosting provider.

Learn more about how mortgage interest rates work on Investopedia.                             

Frequently Asked Questions (FAQ)

What is a mortgage loan?

A mortgage loan is a type of loan used to purchase or refinance a home or property. The borrower agrees to repay the loan over a set period of time, with interest, while the property itself serves as collateral for the loan.

How much down payment do I need to buy a house?

Many lenders prefer a down payment of 20% of the home’s purchase price. However, some loan programs allow down payments as low as 3%. A lower down payment may require private mortgage insurance (PMI).

What is private mortgage insurance (PMI)?

Private mortgage insurance is a policy that protects the lender if the borrower stops making loan payments. PMI is usually required when the down payment is less than 20% and can typically be removed once the loan balance reaches 80% of the home’s original value.

What is the difference between a fixed-rate and adjustable-rate mortgage?

A fixed-rate mortgage has the same interest rate for the entire loan term. An adjustable-rate mortgage (ARM) starts with a fixed rate for a set period and then adjusts based on market conditions, which may increase or decrease future payments.

What costs are included in a monthly mortgage payment?

A monthly mortgage payment often includes principal and interest. It may also include property taxes, home insurance, and PMI if required. These combined payments are sometimes referred to as PITI.

What are closing costs?

Closing costs are one-time fees paid when finalising a home purchase. They may include lender fees, appraisal costs, legal fees, inspections, and prepaid taxes or insurance. Closing costs typically range from 2% to 5% of the home’s purchase price.

Can I pay off my mortgage early?

Yes, many borrowers choose to make extra payments or pay off their mortgage early to save on interest. Before doing so, it is important to check whether the loan includes any prepayment penalties.

Is refinancing a mortgage a good idea?

Refinancing can be beneficial if it results in a lower interest rate, a shorter loan term, or lower monthly payments. However, refinancing usually involves closing costs, so it’s important to consider long-term savings before proceeding.

How does a mortgage calculator help?

A mortgage calculator estimates monthly payments based on loan amount, interest rate, loan term, and additional costs. It helps buyers understand affordability and plan their budget more accurately.

What additional costs should homeowners budget for?

Homeowners should plan for property taxes, insurance, utilities, maintenance, repairs, and possible homeowners association (HOA) fees. These ongoing costs can significantly affect total home ownership expenses.