See what your mortgage actually costs.
Most mortgage calculators only show principal and interest. This one adds property taxes, homeowners insurance, PMI, and HOA, so you see the real monthly payment, plus a slider for what extra principal payments save you in interest and years.
= $80,000 cash up front
Current 30-year fixed averages ~7%. Check Bankrate for today's rate.
Other monthly costs
National average ~1.1%. NJ ~2.5%, HI ~0.3%.
Skip if no HOA
Pay extra to principal
Even small extra payments cut years off your loan
Principal and interest plus property taxes, insurance, and PMI when the down payment is under 20%.
Try it
Slide the "Extra principal each month" slider on the left. Adding even $100/month to a typical mortgage often saves $30,000-$60,000 in interest and pays the loan off 4-6 years early.
Fixed-rate vs adjustable-rate
What kind of mortgage rate is right for you?
Your loan is the home price minus the down payment.
Loan amount = $400,000 - $80,000 = $320,000
Principal and interest come from the standard amortization formula over 30 years at 7%.
Monthly principal and interest = $2,129
Add the monthly property tax, insurance, and PMI (and HOA) to reach the full payment.
Total monthly = $2,129 + $367 tax + $125 insurance = $2,621
PMI applies only while the down payment is under 20% of the home price.
The hidden lever in every mortgage.
When you make a regular mortgage payment, most of it goes to interest in the early years. On a 30-year loan at 7%, only about $400 of your first $2,000 monthly payment actually reduces your balance. The other $1,600 is interest going to the bank.
Principal-only payments skip that entirely. Every extra dollar you send specifically to principal goes 100% to reducing your loan balance, which means you owe less, which means you pay less interest going forward, which compounds for the rest of the loan. That's why even small extra payments have outsized effects.
On a typical $320,000 mortgage at 7%, adding $100 a month to principal saves about $60,000 in interest and pays the loan off four years early. Adding $200 a month saves roughly $120,000 and seven years.
Important: when sending extra money, label it "principal only" or "apply to principal", otherwise many lenders will apply it as a prepayment of next month's full payment, which doesn't have the same effect.
Real mortgages have more moving parts.
Closing costs are not modeled. These typically run 2-5% of the home price and include origination fees, title insurance, appraisal, and other charges. Budget for them separately.
Property tax assumptions are simplified. Taxes vary dramatically by state, county, and city. New Jersey averages 2.5% of home value annually, while Hawaii averages 0.3%. The calculator uses the U.S. average of 1.1%; adjust for your actual area.
PMI removal isn't automatic in the math. The calculator shows PMI when your down payment is under 20%, but in real life, you typically have to request removal once you reach 20% equity. Some loans (like FHA) require PMI for the life of the loan.
Rates change daily. The default 7% reflects average 30-year fixed rates as of early 2026. Check Bankrate, Mortgage News Daily, or your lender for current quotes specific to your credit profile.
Assumptions
- Fixed interest rate for the full term. Adjustable-rate mortgages (ARMs) are not modeled.
- PMI rate fixed at 0.5% of the loan amount per year, only when down payment is below 20%. Real PMI varies by credit, loan-to-value, and lender.
- Property-tax default is 1.1% of home value annually (national-average ballpark). Real rates vary enormously by state and locality.
- Total-paid headline includes PMI for at most 10 years (PMI typically drops off at 80% loan-to-value, which a 20%-down loan reaches in roughly that timeframe).
- No closing costs, escrow setup, points, or lender fees.
- No rate refinancing during the loan.
Limitations
- Closing costs (typically 2 to 5 percent of the purchase price) are not in the total-paid figure.
- Mortgage interest deduction (federal tax savings) is not modeled.
- Home appreciation, equity, and the eventual sale are not in the calculator. See the Rent vs Buy calculator on this site for that math.
- Maintenance, repairs, and replacements (roof, HVAC, etc.) are real ownership costs not modeled here.
- PMI removal in practice requires a request and an appraisal in some loan types.
- It is not a loan offer. Get a quote from a licensed lender for actual rate, fees, and approval terms.
- It is not personalized advice about whether to buy, refinance, or extra-pay.
- It is not a complete cost-of-ownership picture. Maintenance, repairs, and selling costs are not modeled.
- It is not legal or tax advice.
Common questions.
What is principal-only payment?
A principal-only payment is extra money paid toward your loan balance directly, bypassing future interest. Every dollar of extra principal reduces both the loan amount and the interest you'll owe over the life of the loan, often saving tens of thousands of dollars and years of payments.
How much does $100 extra per month save on a mortgage?
On a typical $320,000 30-year mortgage at 7%, adding $100 per month to principal saves roughly $60,000 in interest and pays the loan off about 4 years early. The savings grow with the size of the loan and the interest rate.
What is PMI and when does it go away?
PMI (private mortgage insurance) is required when your down payment is less than 20% of the home price. It typically costs 0.5%-1% of the loan annually and automatically drops off when you reach 20% equity (80% loan-to-value). You can sometimes request removal once you hit 20% equity through extra payments or appreciation.
Should I get a 15-year or 30-year mortgage?
A 15-year mortgage has a higher monthly payment but a lower interest rate (~0.5%-0.75% lower) and saves enormous amounts of interest over time. A 30-year mortgage has lower monthly payments and more flexibility but costs more total interest. The right choice depends on your income stability, other financial goals, and whether you have an emergency fund.
What's the difference between fixed-rate and adjustable-rate mortgages?
A fixed-rate mortgage keeps the same interest rate for the entire loan term, the payment never changes. An adjustable-rate mortgage (ARM) starts with a fixed period (often 5, 7, or 10 years) and then adjusts periodically based on market rates. ARMs often start with lower rates but carry the risk of higher payments later. Fixed-rate loans are predictable; ARMs trade predictability for potential savings.
Educational simulation only. Real mortgage costs include closing costs, rate locks, escrow accounts, and lender fees not modeled here. Always verify with a licensed lender before making decisions. ClearMoneySchool does not provide personalized financial or mortgage advice.