Mortgage Calculator
Model your monthly payments and analyze interest impacts over the life of your home loan.
- NOT FINANCIAL ADVICE
- EDUCATIONAL USE
- ESTIMATES ONLY
- JURISDICTION DIFFERENCES
Advanced Options
“This result is a mathematical estimate based solely on the values you entered and general financial assumptions. It does not evaluate your full financial situation and should not be considered financial, investment, tax, or lending advice.”
“ToolFin is built to support clarity and education—not to replace professional financial advice.”
Result Interpretation
A commonly referenced guideline for housing costs is to keep all-in monthly payments within a range that balances your other financial obligations. Many lenders look at a general rule of thumb known as the "28/36 rule," which benchmarks housing costs against your gross monthly income.
Interest grows as a percentage of your remaining loan balance. In the early years of a mortgage, a significant portion of each payment is allocated toward interest. As the principal is paid down, the interest portion decreases, allowing more of the payment to pay off the loan itself. This process is known as amortization.
This interpretation is provided strictly for educational context regarding standard financial benchmarks and does not reflect an evaluation of your personal position.
Real-Life Example
For a home priced at $350,000 with a 10% down payment ($35,000) and a 30-year loan at 7% interest, the monthly principal and interest would be approximately $2,096. Over 30 years, the total interest paid would exceed $439,000, emphasizing how interest rates dramatically influence the total cost of ownership.
Things to Watch
Fees and Closing Costs
Often ranging from 2% to 5% of the purchase price, these upfront costs are frequently omitted from monthly estimates.
PMI Requirements
Down payments under 20% typically trigger Private Mortgage Insurance, which increases your recurring monthly obligation.
Rate Adjustments
Adjustable-rate mortgages (ARMs) can lead to payment fluctuations after the initial fixed period ends.
Location Factors
Property taxes and insurance premiums vary significantly based on your specific jurisdiction and local laws.
FAQ
What is amortization?
Amortization is the mathematical schedule of loan repayment. It ensures that fixed payments gradually shift from paying off interest to paying down the principal over time.
Are property taxes included?
Only if manually entered in our "Advanced Options." Standard estimates focus strictly on the debt repayment (principal and interest).
How much does the interest rate matter?
Even a 1% difference in your APR can result in tens of thousands of dollars in total cost differences over a 30-year term.