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Calculate your monthly mortgage payment, total interest, and amortization schedule
A first-time buyer purchasing a $250,000 home with $25,000 down (10%) on a 30-year fixed mortgage at 6.5% would pay $1,422.15 per month. Total interest over the life of the loan: $286,974.
Purchasing a $400,000 home with $80,000 down (20%) on a 30-year fixed mortgage at 7.0% would pay $2,128.64 per month. Total interest: $446,312.
For a $300,000 home with $60,000 down at 6.0%: A 15-year loan costs $2,025.26/mo but only $124,547 total interest. A 30-year loan costs $1,438.92/mo but $278,012 total interest — more than double.
A mortgage payment is calculated using the amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal loan amount, r is the monthly interest rate, and n is the total number of payments.
Your monthly payment is primarily affected by four factors: the loan amount (home price minus down payment), interest rate, loan term, and whether you have private mortgage insurance (PMI). Property taxes and homeowner's insurance also add to your total monthly housing cost.
A 15-year mortgage has higher monthly payments but saves significantly on total interest — often hundreds of thousands of dollars. A 30-year mortgage has lower monthly payments, making it more affordable month-to-month. Choose based on your budget and financial goals.
While you can put as little as 3-5% down, a 20% down payment is ideal because it eliminates the need for private mortgage insurance (PMI), gives you a lower monthly payment, and results in better interest rates.