A mortgage loan is a long-term home financing product used in the United States, where a borrower receives funds from a lender to purchase a property. The home itself serves as collateral until the loan is fully paid off. Each monthly payment includes both principal (the loan balance) and interest. Our Mortgage Calculator helps U.S. borrowers estimate monthly payments, total interest cost, PMI, taxes, insurance, and generates a complete amortization schedule with payment dates.

Monthly mortgage payment in the U.S. is calculated using the amortization formula based on loan amount, APR, and term (in months). The payment includes principal + interest and may also include escrow components such as property taxes, homeowners insurance, and PMI. Our calculator accurately computes your monthly payment and displays a month-by-month breakdown, plus a downloadable PDF report.

Private Mortgage Insurance (PMI) is a fee added to U.S. mortgages when the down payment is less than 20% of the home price. PMI protects the lender-not the borrower-and increases your monthly payment. Most U.S. banks automatically remove PMI when your Loan-to-Value (LTV) reaches 78%, or you may request removal at 80%. Our calculator automatically adds PMI when your down payment is under 20% and shows the effect on total monthly payment and long-term cost.

Mortgage amortization is the process of repaying a home loan through fixed monthly payments. Early payments are interest-heavy, while later payments apply more toward principal. Over time, the loan balance decreases and interest charges shrink. Our amortization calculator generates a full monthly schedule showing exact dates, principal applied, interest amount, and remaining balance-plus a PDF summary.

U.S. mortgage rates are influenced by Federal Reserve policy, inflation, bond yields, the housing market, credit score, debt-to-income ratio, and property type. Borrowers with higher credit scores typically receive lower rates. Our calculator lets you test different interest rates to compare long-term cost, monthly payments, and total interest for 15-year and 30-year mortgages.

Escrow is a U.S. lender-managed account that collects monthly contributions for property taxes and homeowners insurance. Instead of paying a large annual bill, the lender includes a small monthly amount in your mortgage payment. Our calculator includes optional estimates for annual tax percentage and home insurance percentage to give you a realistic monthly payment including escrow.

The interest rate reflects the cost of borrowing money, while APR (Annual Percentage Rate) includes the interest rate plus most lender fees, giving a more complete cost picture. Many U.S. borrowers compare APR when shopping for mortgages. Our mortgage calculator uses APR to compute accurate amortization and long-term interest projections.

A fixed-rate mortgage keeps the same interest rate for the entire loan term (e.g., 15-year or 30-year). An Adjustable-Rate Mortgage (ARM) starts with a fixed period (e.g., 5 years) and then adjusts annually based on market conditions. Our calculator works for fixed-rate loans; for ARMs, you can change the interest rate to simulate future adjustments.

Refinancing is the process of replacing an existing mortgage with a new one, usually to lower the interest rate, reduce monthly payments, change the loan term, or access home equity (cash-out refinance). Our mortgage calculator helps estimate savings before refinancing by comparing payments and interest cost at different rates and terms.

Most U.S. lenders follow the 28/36 rule: housing costs ≤ 28% of gross monthly income and total debts ≤ 36%. You should also consider taxes, insurance, PMI, and maintenance. Our calculator accurately includes escrow and PMI, helping you estimate realistic monthly payments before applying for a mortgage.

Under the U.S. Homeowners Protection Act (HPA), PMI automatically ends when your mortgage reaches 78% Loan-to-Value (LTV). Borrowers may request early removal at 80% LTV by providing updated property value. Our calculator identifies when PMI applies based on your down payment.

LTV is the percentage of the home price financed with a mortgage. Formula: LTV = Loan Amount ÷ Home Price × 100. A lower LTV gives better rates and eliminates PMI. Our calculator automatically shows PMI only when LTV is above 80% (down payment below 20%).

Total interest increases with higher APR, longer terms (30-year vs 15-year), lower down payments, and large loan balances. Even a 0.25% rate change can significantly affect lifetime cost. Our calculator visualizes this using a line chart (balance reduction) and a pie chart (principal vs interest).

Yes. Nearly all U.S. lenders require homeowners insurance, and most require property taxes to be paid into an escrow account. These additional costs must be added to your monthly payment. Our calculator computes monthly tax and insurance amounts automatically based on annual percentage rates.

In the U.S., the first mortgage payment is typically due one full month after the loan closing or start date. If you select a Start Date in our calculator, it automatically calculates and displays your First Payment Date and the full Maturity Date for the loan.