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Calculator](/apps/compound-interest-calculator)\n- [Investment Calculator](/apps/investment-calculator)\n- [Retirement Calculator](/apps/retirement-calculator)\n- [Future Value Calculator](/apps/future-value-calculator)\n- [Net Present Value Calculator](/apps/net-present-value-calculator)\n- [Inflation Calculator](/apps/inflation-calculator)\n- [Salary Calculator](/apps/salary-calculator)\n- [Income Tax Calculator](/apps/tax-calculator)\n- [Sales Tax Calculator](/apps/sales-tax-calculator)\n- [Tip Calculator](/apps/tip-calculator)\n- [Percentage Calculator](/apps/percentage-calculator)\n- [APR to APY](/apps/apr-to-apy)\n- [Money Converter](/apps/money-converter)\n- [Send Money](/apps/send-money)\n- [Invoice Generator](/apps/invoice-generator)\n- [Calculator](/apps/calculator)\n\n\u003c!--THE END--\u003e\n\n- Health\n- [BMI Calculator](/apps/bmi-calculator)\n- [Body Fat Calculator](/apps/body-fat-calculator)\n- [Calorie Calculator](/apps/calorie-calculator)\n\n\u003c!--THE 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Calculator](/apps/age-calculator)\n- [Date Calculator](/apps/date-calculator)\n- [What Day Is It](/apps/what-day-is-it)\n- [Lottery Number Generator](/apps/lottery-number-generator)\n\n\u003c!--THE END--\u003e\n\n- Productivity\n- [Pomodoro Timer](/apps/pomodoro-timer)\n\n\u003c!--THE END--\u003e\n\n- Math\n- [Pythagoras Theorem](/apps/pythagoras-theorem)\n- [Roman Numeral Converter](/apps/roman-numeral-converter)\n\nMortgage Calculator — Monthly Payment \u0026 Amortization\n\n# Mortgage Calculator\n\nCalculate your monthly mortgage payment, total interest, and view a complete amortization schedule. Perfect for home buyers comparing loan options. Results update in real-time and can be shared via URL.\n\n## Loan Details\n\nHome Price\n\n$\n\nDown Payment\n\n$\n\n$ %\n\n20% of home price\n\nLoan Amount\n\n$\n\nAuto-calculated from Home Price − Down Payment\n\nYears\n\nMonths\n\nAnnual Interest Rate (%)\n\nPayment Frequency Monthly Biweekly Weekly Quarterly Semi-Annually Annually\n\nStart Month January February March April May June July August September October November December\n\nStart Year\n\nAdditional Costs (Tax, Insurance, HOA)\n\nAnnual Property Tax\n\n$\n\n$ %\n\n1.25% of home price\n\nAnnual Home Insurance\n\n$\n\n$ %\n\n0.63% of home price\n\nPMI Insurance (/yr)\n\n$\n\n$ %\n\nAuto: 0.5% of loan when down payment \u0026lt; 20%\n\nHOA Fees (/mo)\n\n$\n\n$ %\n\nOther Costs (/yr)\n\n$\n\n$ %\n\nCurrency\n\nAnnual Cost Increases\n\nProperty Tax (%/yr)\n\nInsurance (%/yr)\n\nHOA (%/yr)\n\nOther Costs (%/yr)\n\nExtra Payments (Advanced)\n\nExtra Monthly Payment\n\n$\n\n✕\n\nExtra Annual Payment\n\n$\n\n✕\n\nOne-Time Extra Payments\n\n\\+ Add One-Time Payment\n\nCalculate Reset\n\n## Payment Summary\n\nYour Monthly Mortgage Payment\n\n**—**\n\nTotal PITI: **—**\n\nP\u0026I\n\nP\u0026I Tax Insurance PMI HOA\n\nPrincipal \u0026 Interest —\n\nProperty Tax —\n\nHome Insurance —\n\nPMI —\n\nHOA Fees —\n\nOther Costs —\n\nTotal Monthly Expense —\n\nTotal Interest **—**\n\nTotal Paid **—**\n\nPayoff Date **—**\n\nInterest-to-Loan Ratio: **—**\n\nInterest Saved **$0**\n\nTime Saved **0 months**\n\nPrincipal Interest\n\n## Affordability Check (optional)\n\nAnnual Pretax Income\n\n$\n\n \n\nMonthly Debts\n\n$\n\nCar, student loans, etc.\n\n≤ 36% Affordable 36–43% Stretch \u0026gt; 43% Difficult\n\n0%\n\n28/36 Rule\n\nHousing **0%**\n\nOther debts **0%**\n\nAvailable **100%**\n\nLenders prefer housing ≤ 28% and total debts ≤ 36% of gross monthly income.\n\n## Balance Over Time\n\nRemaining Balance Cumulative Principal Cumulative Interest PMI Ends\n\n## Amortization Schedule\n\nCSV Excel Copy\n\nMonthly Annual\n\n\\# P\u0026I Principal Interest Tax Insurance PMI HOA Other Balance\n\n## Compare Scenarios\n\n \n\nMonthly P\u0026I\n\nTotal Interest\n\nTotal Paid\n\nPayoff Date\n\nInterest Ratio\n\nCurrent\n\n—\n\n—\n\n—\n\n—\n\n—\n\nScenario B loan term in years yr @ Scenario B interest rate %\n\n—\n\n—\n\n—\n\n—\n\n—\n\nDifference\n\n—\n\n—\n\n—\n\n—\n\n—\n\n## How to Use This Mortgage Calculator\n\nFollow these steps to estimate your monthly mortgage payment, model extra-payment savings, and view a full amortization schedule:\n\n1. **Enter the home price.** Type the purchase price of the property. The calculator uses $400,000 as a default, which is close to the current U.S. median home price. If you already know your loan amount, you can leave home price blank and enter the loan amount directly.\n2. **Set your down payment.** Enter the amount in dollars or switch to percentage mode with the **$ ↔ %** toggle. A 20% down payment avoids Private Mortgage Insurance (PMI). The loan amount updates automatically: Loan = Home Price − Down Payment.\n3. **Choose your loan term and interest rate.** Common terms are 15 or 30 years. Enter the annual interest rate offered by your lender — even small changes (e.g., 6.5% vs. 7.0%) significantly affect your total interest paid over the life of the loan. You can also select a payment frequency (monthly, biweekly, weekly, quarterly, semi-annually, or annually).\n4. **Add taxes, insurance, and extras.** Expand the *Additional Costs* panel to include annual property tax, homeowners insurance, PMI, HOA fees (/mo), and other costs (/yr). Each field displays a currency prefix (e.g., **$**) and supports **$ ↔ %** toggling. You can change currency using the *Currency* selector — all symbols and formatting update throughout the calculator.\n5. **Model annual cost increases.** Inside Additional Costs, expand *Annual Cost Increases* to enter a yearly percentage increase for property tax, insurance, HOA, or other costs. This projects how your payment grows over time and is reflected in the amortization schedule.\n6. **Add extra payments.** Expand the *Extra Payments (Advanced)* panel to enter a recurring extra monthly payment (with a start date), an extra annual payment (with a target month), or one-time lump-sum payments for specific months. Each extra payment type shows its own amount field with a currency prefix and a date picker. The green savings callout instantly shows how much interest you save and how many months earlier you pay off.\n7. **Check affordability.** Enter your annual pretax income and monthly debts in the *Affordability Check* section. The DTI gauge color-codes your ratio: green (≤ 28%), yellow (29–36%), or red (\u0026gt; 36%).\n8. **Review your results.** Your total monthly PITI payment appears instantly. Scroll down for the color-coded breakdown bar, payoff date, and savings callout. The amortization schedule (toggle monthly or annual view) includes columns for principal, interest, tax, insurance, PMI, and — when applicable — HOA and Other Costs, with a sticky total row at the bottom. Use the **Copy** or **Export** buttons to save your results.\n\n**Tip:** The URL updates as you change inputs. Copy and share it to send your exact scenario to a partner, realtor, or financial advisor — they will see the same numbers you do. Your inputs are also auto-saved in your browser so they persist across visits.\n\n## Understanding Your Results\n\nAfter calculating, you will see several key outputs:\n\n**Monthly PITI Payment** — This is the total amount due each month. PITI stands for Principal, Interest, Taxes, and Insurance. It includes your base loan payment (P\u0026I) plus prorated property tax, homeowners insurance, PMI (if applicable), and HOA fees. Lenders evaluate this number when determining your qualification.\n\n**Breakdown Bar** — The stacked color bar shows what portion of your monthly payment goes toward each cost category. For a typical $320,000 loan at 6.5% with $5,000 annual tax and $2,500 annual insurance, about 76% of the payment is P\u0026I, with the remaining 24% going to tax, insurance, and PMI. As you increase the down payment to 20% or higher, the PMI segment disappears entirely.\n\n**Total Interest** — The cumulative interest paid over the entire loan term. On a $320,000 loan at 6.5% for 30 years, you would pay roughly $407,000 in total interest — more than the loan itself. Shortening the term to 15 years cuts total interest by roughly 60%, though the monthly payment increases.\n\n**Interest-to-Loan Ratio** — Expressed as a percentage, this shows how much interest you pay relative to the loan amount. A ratio above 100% means you pay more in interest than the original principal. This metric helps compare different loan scenarios on equal footing.\n\n**Payoff Date** — The estimated month and year when your final payment occurs. Extra payments move this date earlier — even $100/month extra on a 30-year mortgage can reduce the term by 5+ years.\n\n**Amortization Schedule** — Toggle between monthly and annual views. Each row shows the payment split between principal, interest, tax, insurance, and PMI. When HOA fees or other costs are entered, additional columns appear automatically. A sticky **Total** row at the bottom sums every column (except balance) so you can see lifetime totals without scrolling. Notice how early payments are interest-heavy: in month 1, roughly 70% of a 6.5% loan payment goes to interest. By year 20, most of each payment goes toward principal. The green-highlighted row marks where PMI drops off (when equity reaches 20%). If you set annual cost increases, those rising costs are reflected in each row.\n\n## Understanding PITI: The True Cost of Homeownership\n\n**PITI** stands for **Principal, Interest, Taxes, and Insurance** — the four components that make up your total monthly housing expense. Understanding PITI is crucial because lenders use this full amount, not just your loan payment, to decide how much you can borrow.\n\n**Principal** — The portion of each payment that reduces your loan balance. Early in the loan, only a small fraction goes to principal; the rest goes to interest. Over time, as the balance decreases, a larger share of each payment goes to principal. For a $320,000 loan at 6.5%, your first payment puts roughly $290 toward principal and $1,733 toward interest.\n\n**Interest** — The cost of borrowing money, calculated as a percentage of the remaining loan balance. Interest is front-loaded: in the first year, roughly 70% of each payment goes to interest. This is why extra payments early in the loan have the biggest impact — they directly reduce the balance that interest is calculated on.\n\n**Taxes** — Annual property taxes assessed by your local government, typically 0.5% to 2.5% of the home's assessed value. Most lenders require property taxes to be paid through an escrow account, where 1/12 of the annual tax is collected with each mortgage payment. Tax rates vary widely by location — a $400,000 home might owe $2,000/year in Hawaii but $10,000/year in New Jersey.\n\n**Insurance** — Homeowners insurance protects your property against damage, theft, and liability. Annual premiums typically range from $1,000 to $4,000 depending on location, coverage level, and the home's replacement cost. Like taxes, insurance is usually escrowed and collected monthly.\n\n### Additional Costs Often Included with PITI\n\n**PMI (Private Mortgage Insurance)** — Required when your down payment is less than 20%. PMI typically costs 0.3% to 1.5% of the original loan amount per year. On a $320,000 loan, PMI of 0.5% adds roughly $133/month. The good news: PMI automatically drops off once your loan-to-value ratio reaches 78%, or you can request removal at 80% equity.\n\n**HOA Fees** — If your property belongs to a homeowners association (common in condos, townhomes, and planned communities), monthly HOA fees cover shared amenities, maintenance, and insurance for common areas. Fees range from $100 to $1,000+ per month depending on the community and amenities provided.\n\n### Why PITI Matters\n\nMany first-time buyers focus only on the P\u0026I payment and are surprised by the total monthly obligation. On a $400,000 home with 20% down at 6.5%, the P\u0026I payment is about $2,023/month. But add $417/month in taxes, $208/month in insurance, and you're at $2,648/month — 31% higher than the P\u0026I alone. If you're putting less than 20% down, PMI adds another $133/month or more.\n\nLenders typically require your total PITI payment to be no more than 28% of your gross monthly income (the \"front-end ratio\"). Your total debts including PITI should not exceed 36% of your income (the \"back-end ratio\"). This is known as the **28/36 rule**, and our Affordability Check section above uses it to evaluate your debt-to-income ratio.\n\n**Pro Tip:** When budgeting for a home, always use the full PITI amount plus HOA fees, not just the P\u0026I payment. This calculator shows you the complete \"Total Monthly Expense\" figure so you can plan accurately and avoid overextending your budget.\n\n## Mortgage Payment Formula\n\nThe standard fixed-rate mortgage payment formula is:\n\nM = P × \\[r(1 + r)n] / \\[(1 + r)n − 1]\n\nSymbolMeaning **M**Monthly payment (principal and interest only) **P**Loan principal (home price minus down payment) **r**Monthly interest rate (annual rate ÷ 12 ÷ 100) **n**Total number of payments (years × 12)\n\n**Worked example:** Consider a $400,000 home with 20% down ($80,000), leaving a $320,000 loan at 6.5% for 30 years.\n\n- P = $320,000\n- r = 6.5% ÷ 12 ÷ 100 = 0.005417\n- n = 30 × 12 = 360 payments\n- M = 320,000 × \\[0.005417 × (1.005417)360] / \\[(1.005417)360 − 1]\n- **M ≈ $2,023 per month** (principal and interest only)\n\nAdd monthly property tax ($417), insurance ($208), and PMI ($0 since 20% down), and the total PITI payment is approximately **$2,648 per month**.\n\n## Factors That Affect Your Mortgage Payment\n\nFive main factors determine your monthly mortgage payment. Understanding each helps you make informed decisions when shopping for a home loan.\n\n**1. Loan Amount** — The larger the loan, the higher the payment. A $400,000 loan at 6.5% for 30 years costs $2,528/month in P\u0026I, while a $300,000 loan at the same rate costs $1,896/month — a $632 difference. Increasing your down payment directly reduces the loan amount and all associated costs.\n\n**2. Interest Rate** — Even half a percentage point matters enormously over 30 years. On a $320,000 loan, increasing the rate from 6.0% to 6.5% adds roughly $100/month to your payment and approximately $36,000 in total interest over the life of the loan. Compare quotes from at least three lenders to find the best rate.\n\n**3. Loan Term** — Shorter terms mean higher monthly payments but dramatically lower total interest. A 15-year mortgage on $320,000 at 6.5% has a payment of about $2,789/month (vs. $2,023 for 30 years), but the total interest drops from $407,000 to $182,000 — saving $225,000.\n\n**4. Down Payment** — Putting more money down reduces the loan principal, lowers monthly payments, and can eliminate PMI. Going from 10% to 20% down on a $400,000 home saves roughly $167/month in PMI alone and reduces the loan by $40,000.\n\n**5. Taxes, Insurance, and HOA** — These \"hidden costs\" add 20–30% on top of your P\u0026I payment. Property tax rates vary widely by state (0.3% in Hawaii to 2.2% in New Jersey). Homeowners insurance depends on location, home value, and coverage level. HOA fees range from $100 to $1,000+/month depending on the community and amenities.\n\n## The 28/36 Rule: What You Can Afford\n\nThe 28/36 rule is a guideline used by most lenders to determine how much mortgage you can comfortably afford based on your income.\n\n**The \"28\" (Front-End Ratio):** Your total housing costs — including principal, interest, property taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income. For example, with a $110,000 annual salary ($9,167/month gross), your maximum PITI payment should be $2,567/month.\n\n**The \"36\" (Back-End Ratio):** Your total monthly debt payments — housing costs plus car loans, student loans, credit card minimums, and other recurring debts — should not exceed 36% of your gross monthly income. With the same $110,000 salary, your total debt payments should stay below $3,300/month.\n\n**Practical example:** If you earn $110,000/year and have $500/month in existing debts (car payment + student loan), your maximum PITI would be $3,300 − $500 = $2,800/month based on the back-end ratio, or $2,567/month based on the front-end ratio. The lower of the two ($2,567) is your target maximum.\n\nUse the **Affordability Check** section above to enter your income and existing debts. The DTI gauge color-codes your ratio: **green** (≤ 28%) means comfortably affordable, **yellow** (29–36%) is a stretch but potentially approvable, and **red** (\u0026gt; 36%) may make it difficult to qualify for a conventional loan.\n\n*Note:* Some loan programs (FHA, VA) allow higher DTI ratios — up to 43% or even 50% with compensating factors such as substantial savings or excellent credit. The 28/36 rule is a guideline, not a hard limit.\n\n## Extra Payments: How Overpaying Saves Money\n\nMaking extra payments toward your mortgage principal is one of the most effective ways to reduce total interest and shorten your loan term.\n\n**Example:** On a $320,000 loan at 6.5% for 30 years, adding just $200/month in extra principal payments saves roughly $112,000 in interest and pays off the loan 7 years early. That is a significant return on a relatively small monthly commitment.\n\n**Biweekly payments** are another popular strategy. Instead of 12 monthly payments per year, you make 26 half-payments — effectively adding one extra full payment per year. This alone can shave 4–5 years off a 30-year mortgage.\n\n**Lump-sum payments:** Applying a year-end bonus or tax refund directly to principal has a similar effect. A single $5,000 extra payment in year 1 of a $320,000 loan at 6.5% saves approximately $16,000 in interest over the remaining term.\n\n**Should you overpay or invest?** This depends on your mortgage rate versus expected investment returns. If your mortgage rate is 6.5%, every extra dollar you pay saves 6.5% in guaranteed interest. If you can consistently earn more than 6.5% after taxes in the stock market, investing might be better — but mortgage prepayment is a guaranteed, risk-free return. Many financial advisors recommend a balanced approach: maximize employer 401(k) match first, then direct extra cash to mortgage prepayment.\n\nUse the **Extra Payments (Advanced)** section above to model different scenarios. You can enter a recurring **extra monthly payment** with a start date, a recurring **extra annual payment** targeted at a specific month, or add multiple **one-time lump-sum payments** for exact months. The green savings callout shows exactly how much interest you save and how many months earlier you pay off the loan.\n\n## Mortgage Types Explained\n\nUnderstanding the different mortgage types helps you choose the loan that best fits your financial situation and timeline.\n\n**Fixed-Rate Mortgage:** The interest rate stays the same for the entire loan term (typically 15 or 30 years). Monthly P\u0026I payments never change, making budgeting predictable. This is the most popular option — about 90% of U.S. mortgages are fixed-rate. Best for buyers who plan to stay in the home long-term.\n\n**Adjustable-Rate Mortgage (ARM):** The rate is fixed for an initial period (5, 7, or 10 years), then adjusts annually based on a market index. A 5/1 ARM, for example, offers a fixed rate for 5 years, then adjusts every year. ARMs typically start with lower rates than fixed mortgages, but monthly payments can increase significantly after the initial period. Best for buyers who plan to sell or refinance within the fixed-rate period.\n\n**Conventional Loans:** Not backed by a government agency. Typically require a minimum 3–5% down payment and a credit score of 620+. PMI is required for down payments below 20% but can be removed once you reach 20% equity.\n\n**FHA Loans:** Backed by the Federal Housing Administration. Allow down payments as low as 3.5% with a credit score of 580+. Require mortgage insurance premiums (MIP) for the life of the loan unless you refinance to a conventional loan.\n\n**VA Loans:** Available to military service members, veterans, and eligible spouses. Offer 0% down payment, no PMI, and competitive rates. Generally the best mortgage deal available, but eligibility is limited.\n\n## Tips for Getting the Best Mortgage Rate\n\nYour mortgage interest rate directly determines how much interest you pay over the life of the loan. Here is how to secure the lowest rate possible:\n\n**Improve your credit score.** Lenders offer the best rates to borrowers with scores of 760+. Moving from a 680 to a 760 score can save 0.5–1.0 percentage points on your rate — worth tens of thousands of dollars over 30 years. Check your credit report for errors, pay down revolving balances, and avoid opening new accounts before applying.\n\n**Shop multiple lenders.** Rates vary significantly between banks, credit unions, and online lenders. The Consumer Financial Protection Bureau (CFPB) recommends getting quotes from at least three lenders. Multiple mortgage inquiries within a 14-day window count as a single credit pull.\n\n**Consider discount points.** One point costs 1% of the loan amount and typically reduces your rate by 0.25%. On a $320,000 loan, one point costs $3,200 but saves roughly $55/month. The \"breakeven\" is about 58 months — if you plan to stay longer than that, buying points is worthwhile.\n\n**Lock at the right time.** Mortgage rates fluctuate daily based on bond markets, Federal Reserve policy, and economic data. Once you find a good rate, lock it in. Most rate locks are valid for 30–60 days. Avoid trying to \"time\" the market — rate lock immediately when you are satisfied with the terms offered.\n\n*This tool is for educational and informational purposes only and does not constitute financial, legal, or tax advice. Actual mortgage payments may differ based on lender terms, credit profile, and local requirements. Consult a licensed mortgage professional or financial advisor for personalized guidance before making home-buying decisions.*\n\n## Related Financial Calculators\n\n[🏦 Loan EMI Calculator](/apps/loan-emi-calculator)\n\n[📈 Compound Interest Calculator](/apps/compound-interest-calculator)\n\n[💰 Investment Calculator](/apps/investment-calculator)\n\n[💼 Salary Calculator](/apps/salary-calculator)\n\n[🧾 Tax Calculator](/apps/tax-calculator)\n\n[📊 Percentage Calculator](/apps/percentage-calculator)\n\n## Related Products\n\n[📘 Home Buying Books →](https://www.amazon.com/s?k=home%20buying%20guide%20books\u0026tag=tejji-20) [🔢 Financial Calculators →](https://www.amazon.com/s?k=financial%20calculator%20mortgage\u0026tag=tejji-20) [📒 Mortgage Planners →](https://www.amazon.com/s?k=mortgage%20planner%20organizer\u0026tag=tejji-20)\n\n*As an Amazon Associate, tejji.com earns from qualifying purchases.*\n\n## Frequently Asked Questions\n\n### How is monthly mortgage payment calculated?\n\nMonthly payment = P × \\[r(1+r)^n] / \\[(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12).\n\n### What is an amortization schedule?\n\nAn amortization schedule shows how each payment is split between principal and interest over the life of the loan. Early payments are mostly interest; later payments are mostly principal.\n\n### How does payment frequency affect total interest?\n\nMore frequent payments (e.g., biweekly) reduce total interest because principal is paid down faster. Biweekly payments effectively add one extra monthly payment per year.\n\n### What is the best free online mortgage calculator?\n\nThis mortgage calculator is a free, no-signup tool that instantly computes your monthly payment, total interest, and generates a full amortization schedule for any loan amount, rate, and term.\n\n### How do I calculate my monthly mortgage payment without signing up?\n\nEnter your loan amount, interest rate, and loan term on this page and click Calculate. No account or signup is required — results appear instantly.\n\n### Can I see a full amortization schedule online for free?\n\nYes. After calculating your mortgage payment, scroll down to the Amortization Schedule section to see the principal and interest breakdown for every single payment over the life of your loan.\n\n### What is PMI and when does it apply?\n\nPrivate Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It protects the lender if you default. PMI typically costs 0.3%–1.5% of the original loan amount per year and is automatically removed once your equity reaches 20%.\n\n### Is it better to get a 15-year or 30-year mortgage?\n\nA 15-year mortgage has higher monthly payments but significantly lower total interest — typically saving 50–60% compared to a 30-year term. A 30-year mortgage offers lower monthly payments and more flexibility. Choose 15 years if you can comfortably afford the higher payment; choose 30 years for lower monthly obligations and invest the difference.\n\n### How much should I put down on a house?\n\nWhile 20% is the traditional target (it avoids PMI and typically gets the best rates), many programs allow much less. FHA loans require as little as 3.5%, and some conventional loans accept 3%. However, lower down payments mean higher monthly payments, PMI costs, and more total interest. Aim for at least 10–20% if possible.\n\n### What are closing costs and how much are they?\n\nClosing costs are fees paid at the final step of the home purchase, typically 2–5% of the loan amount. They include appraisal fees, title insurance, attorney fees, origination fees, and prepaid items like property taxes and insurance. On a $320,000 loan, expect $6,400–$16,000 in closing costs.\n\n### How do property taxes affect my mortgage payment?\n\nProperty taxes are typically collected monthly as part of your mortgage payment and held in an escrow account. The annual amount is divided by 12 and added to your P\u0026I payment. Tax rates vary by location — from 0.3% in Hawaii to over 2% in New Jersey. On a $400,000 home with a 1.25% tax rate, you would pay about $417/month in property taxes.\n\n### What is the 28/36 rule for mortgage affordability?\n\nThe 28/36 rule is a guideline that says your housing costs (PITI) should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. For example, with a $100,000 salary ($8,333/month), your maximum PITI is $2,333 and maximum total debts $3,000. Use the Affordability Check section on this page to calculate your DTI ratio.\n\n### How do extra payments reduce my mortgage?\n\nExtra payments go directly toward principal, reducing the balance on which interest accrues. This calculator supports three types: a recurring extra monthly payment (with a start date), a recurring extra annual payment targeting a specific month, and one-time lump-sum payments for exact months. Even $200/month extra on a 30-year $320,000 loan at 6.5% saves roughly $112,000 in interest and shortens the term by about 7 years.\n\n### Does this calculator support different currencies?\n\nYes. Expand Additional Costs and use the Currency selector to switch between USD, EUR, GBP, INR, JPY, and other major currencies. All currency prefixes, number formatting, and symbols update instantly throughout the calculator, including the amortization schedule and export outputs.\n\n### What are annual cost increases and how do they work?\n\nAnnual cost increases let you model how property tax, insurance, HOA fees, and other costs rise each year. Enter a percentage (e.g., 3% for property tax) and the calculator compounds the increase each year in the amortization schedule. This gives a more realistic projection of your future payments, since these costs rarely stay flat over a 15–30 year loan term.\n\n## Related Tools\n\n[🏦 Loan EMI Calculator finance](/apps/loan-emi-calculator) [📈 Compound Interest Calculator finance](/apps/compound-interest-calculator) [💰 Salary Calculator finance](/apps/salary-calculator) [🧾 Tax Calculator finance](/apps/tax-calculator) [💹 Investment Calculator finance](/apps/investment-calculator) [🏖 Retirement Calculator finance](/apps/retirement-calculator)\n\n📱\n\nQuick Access\n\nInstall this tool on your device for instant access\n\nInstall App","footer":"\n\n📱 Install Tejji for quick access to this tool Install\n\nTools\n\n- [All Apps](/apps/)\n- [Converters](/convert/)\n- [IP Tools](/ip/)\n- [Calculator](/apps/calculator)\n\nExplore\n\n- [Time \u0026 Date](/time-date/)\n- [Postal Codes](/zip-codes/)\n- [Typing](/typing/)\n- [Extensions](/browser/chrome/extensions/)\n\nCompany\n\n- [About](/home/about)\n- [Contact](/home/contact)\n- [Privacy](/home/privacy)\n- [Terms](/home/terms)\n\nSupport\n\n- [Feedback](/home/contact)\n- [Buy me a coffee](https://buymeacoffee.com/tejji)\n\n© 2026 [Tejji.com](/) — Free online tools for everyone.\n\nWe use cookies for analytics and ads. 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