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Mortgage Calculator
Buying a house is exciting. Paying for it is terrifying. Use this tool to see the real numbers—taxes, insurance, and all—so you don't end up "house poor."
Loan Details
Monthly Payment
Can You Actually Afford This House?
Most mortgage calculators lie. They show you the "Principal & Interest" payment ($1,500) but forget to mention Taxes ($400), Insurance ($100), and HOA fees ($250). Suddenly your $1,500 payment is $2,250. Oops.
💡 Real Talk from David Chen, CFA
Don't trust the bank's "Pre-Approval" amount. The bank only cares if you can make the payment without going bankrupt. They don't care if you have money left over for furniture, vacations, or food. Calculate what YOU are comfortable paying, not what they say you can borrow.
The Hidden Costs of Owning a Home
Your mortgage payment is just the start. Welcome to PITI:
- Principal: Paying back the loan.
- Interest: Paying the bank for the privilege of borrowing money.
- Taxes: Paying the government (can go up every year!).
- Insurance: Paying in case your house burns down.
And don't forget Maintenance. Roofs leak. Water heaters explode. Budget 1% of your home's value every year for repairs. ($400k house = $4k/year for repairs).
⚠️ Common Mistake: The "20% Down" Myth
You don't NEED 20% down. First-time buyers can often put down 3-5%. Yes, you'll pay PMI (Private Mortgage Insurance), but if it gets you into a house 5 years sooner, it might be worth it. Do the math.
15-Year vs 30-Year: The Showdown
30-Year: Lower monthly payment. You pay WAY more interest over time. Good if you need cash flow flexibility.
15-Year: Higher monthly payment. You save a fortune in interest. Good if you hate debt and want to be free sooner.
Reviewed by David Chen, CFA
Chartered Financial Analyst
David has analyzed thousands of mortgages. His advice? Buy the worst house in the best neighborhood.
Frequently Asked Questions
How much house can I afford?
A rough rule: your monthly housing payment (PITI) shouldn't exceed 28% of your gross monthly income. So if you make $6,000/month, aim for max $1,680 in housing costs. But honestly? Go lower if you can. You want to enjoy your house, not stress about paying for it.
What's a good mortgage interest rate in 2025?
As of late 2025, rates are hovering around 6-7% for a 30-year fixed. If you're offered below 6%, that's solid. Above 8%? Shop around harder or work on your credit score first.
Should I get a 15-year or 30-year mortgage?
30-year gives you breathing room with lower payments, but you pay a ton more interest. 15-year forces you to pay it off fast and saves you money—but the monthly payment is brutal. Most people go 30-year, then pay extra when they can.