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Your mortgage payment usually includes principal, interest, taxes, homeowners insurance, and mortgage insurance if your loan requires it. How much might you pay? Use our mortgage payment calculator and get an estimate!

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What affects the amount of your mortgage payment?

Four things have a big impact on the amount you might pay for a mortgage. The purchase price of the home. The size of the down payment, which affects the amount of money you need to borrow to buy the home. The interest rate the lender charges to loan you money. And the term of the mortgage or the number of years you have to pay the loan back. (Many mortgages have a term of 30 years.)

When your mortgage has a longer term, your monthly mortgage payments can be lower because you are paying the money back over a longer period of time. You typically pay more money in interest when you have a mortgage with a longer term compared to a shorter term.

Our mortgage payment calculator considers purchase price, down payment, interest rate, and term when it estimates your monthly payment. You’ll see these fields in the “Basic” section of the calculator. Change the numbers in these fields and see how the estimate of your mortgage payment changes too!

Calculate your monthly payment with taxes, homeowners insurance, and mortgage insurance

Your monthly mortgage payment usually includes more than principal and interest. Many mortgages require you to pay the cost of property taxes and homeowners insurance into an escrow account. In the “Advanced Section” of the calculator you can update the values for taxes and insurance to see the impact to your monthly mortgage payment.

Our mortgage payment calculator also includes an estimate of the cost of private mortgage insurance (or “PMI”). People typically need to pay for private mortgage insurance when they make a down payment of less than 20% on a conventional home loan. Change the percentage in the down payment field to less than 20%, and you’ll see an estimated cost of PMI and how it impacts your monthly mortgage payment.

How you can lower your mortgage payments

When you are buying a house, one easy way to reduce your monthly mortgage payment is to buy a less expensive home. Shopping for the best interest rate and waiting for times when interest rates are lower can save you money. And if you are thinking about getting a conventional mortgage, making a 20% down payment will save you the cost of private mortgage insurance.

When you own a home, refinancing might lower your mortgage payment when current interest rates are significantly lower than the interest rate on your home loan. Freedom Mortgage customers are automatically enrolled in our Eagle Eye Program, which looks for ways to save them money when interest rates fall or opportunities to get cash when their home equity increases.

If you are paying for private mortgage insurance, check the amount of your home equity. If your loan is subject to the federal Homeowners Protection Act (HPA), then once you have 20% home equity, you can request to stop paying PMI. (You’ll have to meet certain criteria, so talk to your lender.) Additionally, if you are current on your loan and it is covered by the HPA, your lender is required to remove PMI from your monthly mortgage payment once your home equity reaches 22%.

How your mortgage payments can increase

People who have an adjustable-rate mortgage might see their monthly interest payments rise if their mortgage adjusts to a higher rate. (Keep in mind that your interest payments can also go down with an adjustable rate mortgage.) If your property taxes increase or the premium of your homeowners insurance goes up, these can increase your payments too.

Getting a cash-out refinance can increase the amount of your monthly mortgage payment. With a cash-out refinance, you replace your current mortgage with a new mortgage for a higher amount and get the difference in cash when the loan closes.

Would you like to speak to us about a mortgage to purchase or refinance a home? Please complete our Get Started form or connect with one of our knowledgeable Loan Advisors at 877-220-5533.

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Contact Us

Get started today by getting a personalized evaluation of your home loan options from Freedom Mortgage.

877-220-5533