Mortgage Calculator
See your real monthly payment with principal, interest, taxes, insurance, PMI, and HOA all in one number. Updated weekly with rates from Freddie Mac. No sign-up, no email, no "estimate then call us" tricks.
Last updated: April 2026 · Rate source: Freddie Mac PMMS, April 2 2026
US median: $402,700 (NAR, Sept 2025)
20.0% down · LTV 80.0%
US average ~1.10%. Hawaii 0.30%, NJ 2.47%.
Where mortgage rates stand right now
Freddie Mac's Primary Mortgage Market Survey (PMMS), the most-cited weekly rate benchmark in the industry, put the 30-year fixed at 6.46% as of April 2, 2026 — up slightly from 6.38% the week before, and down from 6.64% a year ago. The 15-year sat at 5.77%, and the 5/1 ARM was around 6.15%.
Over the past 52 weeks, the 30-year has bounced between a low of 5.9% in late February and a high of 6.92% last May. That is a 102 basis point swing — large enough to change the monthly payment on a $336,000 loan by about $215. Sam Khater, Freddie Mac's chief economist, has been saying for months that buyers should get multiple quotes because the spread between lenders on any given week can save thousands over the life of the loan.
Forecasts from Fannie Mae and the Mortgage Bankers Association both see rates staying in the 6.0-6.5% range through 2026, with the Fed expected to make limited cuts as inflation continues to run above its 2% target. If you are waiting for 4% rates to come back, you may be waiting a long time.
How the math actually works
The principal and interest portion of your mortgage uses a standard amortization formula:
Where M is the monthly payment, P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (years times 12). The formula is the same one banks have used since the 1930s and it produces an "amortizing" payment — meaning every payment is the same amount, but the share that goes to interest versus principal shifts over time.
A worked example. You buy a $420,000 home with 20% down ($84,000), borrowing $336,000 at the current 30-year rate of 6.46%. Plug in P = 336,000, r = 0.0646/12 = 0.005383, n = 360. The math gives you a monthly principal and interest payment of about $2,113. Over 30 years, that is $760,680 in total payments — meaning you pay roughly $424,680 in interest on a $336,000 loan. Yes, more than the loan itself.
But $2,113 is not your real monthly payment. Add property tax (about $385 at 1.10%), home insurance (about $150), and you are at $2,648. Add HOA if you have it. Add PMI if you put less than 20% down. The number that lands in your bank account each month is usually $400-$1,000 higher than what a basic principal-and-interest calculator shows you.
What's actually in your monthly payment
Principal
The portion of each payment that pays down your loan balance. In year one, principal is the smallest piece — maybe $300-$400 of a $2,100 payment. By year 20, it has flipped: most of your payment is principal. This is why the early years of a mortgage build equity slowly, and also why making extra principal payments early has an outsized effect on total interest paid.
Interest
The cost of borrowing the money. At 6.46%, you pay roughly $1,810 in interest in your first month and $300 in principal. By year 15, that flips to about $1,200 interest and $900 principal. The total interest you pay on a 30-year loan is usually 80-100% of the original loan amount — meaning you pay nearly double the home's purchase price by the end.
Taxes (property tax)
Your county collects this annually but most lenders bundle it into your monthly mortgage payment via an escrow account. The US average effective property tax rate is around 1.10%, but the spread is enormous. New Jersey averages 2.47%, Illinois 2.08%, New Hampshire 2.09%. Hawaii is the lowest at 0.30%, followed by Alabama and Louisiana. Same house, different state, $500-$800 swing in monthly payment.
Insurance (homeowners)
Required by every lender. Typical policies run $1,200-$3,000 per year depending on location, home value, and risk factors (Florida and California coastal areas can run far higher). Average works out to about $125-$250 per month. Your lender escrows this too.
PMI (private mortgage insurance)
Only required if your down payment is under 20% on a conventional loan. Costs 0.3% to 1.5% of the loan amount per year, with most borrowers paying 0.5% to 1.0%. On a $336,000 loan at 0.55%, that is about $154/month. PMI does not benefit you — it protects the lender if you default. The good news: it automatically falls off at 78% LTV, and you can request removal at 80% LTV.
HOA (when applicable)
If you buy a condo, townhouse, or home in a planned community, you pay monthly HOA dues. According to a 2025 DoorLoop analysis, the US average HOA fee is $291/month, but luxury buildings and resort communities can charge $500-$2,000+. Lenders count HOA toward your debt-to-income ratio, so high HOA fees can shrink the loan amount you qualify for.
15 vs 20 vs 30 year (April 2026 rates)
Comparing a $336,000 loan ($420,000 home with 20% down) at the current Freddie Mac rates. The 15-year saves you a fortune in interest at the cost of a much higher monthly payment.
| Term | Rate | Monthly P&I | Total interest | Total cost |
|---|---|---|---|---|
| 30-year fixed | 6.46% | $2,113 | $424,680 | $760,680 |
| 20-year fixed | ~6.10% | $2,427 | $246,480 | $582,480 |
| 15-year fixed | 5.77% | $2,791 | $166,380 | $502,380 |
15-year saves $258,300 in interest vs 30-year. Cost: $678 more per month.
Property tax: where you live matters more than you think
Effective property tax rates from the Tax Foundation's 2025 data. On a $420,000 home, the spread between Hawaii and New Jersey is $760 per month. That is a different size house in two different states.
| State | Effective rate | Annual on $420k | Monthly |
|---|---|---|---|
| New Jersey | 2.47% | $10,374 | $865 |
| Illinois | 2.08% | $8,736 | $728 |
| New Hampshire | 2.09% | $8,778 | $732 |
| Connecticut | 2.00% | $8,400 | $700 |
| Texas | 1.68% | $7,056 | $588 |
| US average | 1.10% | $4,620 | $385 |
| California | 0.71% | $2,982 | $249 |
| Alabama | 0.41% | $1,722 | $144 |
| Hawaii | 0.30% | $1,260 | $105 |
Five real scenarios at current rates
1. The first-time buyer with 5% down (Phoenix)
Maya earns $95,000 a year and is buying a $375,000 home in Phoenix, Arizona. She puts 5% down ($18,750), borrows $356,250 at 6.46% over 30 years. Arizona's property tax rate is about 0.62%, insurance runs ~$1,500/year, and PMI at 0.65% costs another $193/month. Her real PITI: $2,757/month. That is 35% of her gross income — well above the 28% comfort threshold. She decides to either find a cheaper house or wait until she has saved more for a down payment.
2. The 20%-down buyer (Austin, no HOA)
James and his wife earn $185,000 combined and buy a $480,000 home in Austin, Texas. They put 20% down ($96,000), borrowing $384,000 at 6.46%. Texas property tax is high (~1.68%), so they pay $672/month in tax alone. Insurance is $200/month. Real PITI: $3,289/month. That is 21% of their gross income — comfortably under the 28% threshold, with room for 401(k) contributions and an emergency fund.
3. The 15-year buyer prioritizing payoff (Ohio)
Linda is 52, earns $140,000, and wants to be mortgage-free by retirement. She buys a $310,000 home in Columbus, Ohio with 25% down. She takes a 15-year loan at 5.77% on $232,500 — monthly P&I is $1,932. With Ohio property tax (~1.51%) and insurance, her full PITI is about $2,538/month. She pays $115,400 in total interest vs roughly $293,000 if she had taken the 30-year. The higher monthly payment is the price of freedom at 67.
4. The condo buyer with high HOA (Miami)
David buys a $385,000 condo in Miami with 10% down. The HOA is $720/month, which is high but typical for newer Florida buildings post-Surfside (insurance, reserves, and inspections have driven HOA fees up sharply). His mortgage P&I is $2,179, plus $290 tax, $250 insurance, $159 PMI, and $720 HOA. Real monthly: $3,598. The HOA alone is bigger than his car payment. Lesson: when buying a condo, always run the math with the HOA, because the lender absolutely will.
5. The "I'll just refinance later" buyer
Sarah buys at 6.92% in May 2025 (last year's high), planning to refinance when rates drop. By April 2026, rates are at 6.46% — only 46 basis points lower. On her $300,000 loan, that drop saves about $96/month, or $1,152/year. Refinance closing costs run $4,000-$6,000, so her break-even is 3-5 years. She is staying long enough to make the refi worthwhile, but not by much. The lesson: "date the rate, marry the house" only works if you can actually afford the dating period at today's rate.
Common mistakes when using a mortgage calculator
1. Using a P&I-only calculator
Most free calculators (including ones on bank sites) only show principal and interest. The real payment with taxes, insurance, PMI and HOA is usually $400-$1,200 higher. If your calculator does not have fields for property tax and insurance, throw it away and find one that does.
2. Using the national average property tax rate
National average is 1.10%. The actual range is 0.30% (Hawaii) to 2.47% (New Jersey). A "default" calculator can be off by $500-$800 per month for the same home. Always look up the actual rate for your specific county, not the state average.
3. Forgetting that taxes get reassessed at sale
The property tax shown on a Zillow listing is what the current owner pays — based on what they paid years ago. When you buy, the home gets reassessed at your purchase price, which usually means a tax increase of 20-50% in the first year. Use the home's actual sale price (not its old assessment) when you run the math.
4. Ignoring closing costs in the cash-needed total
You need down payment PLUS closing costs (2-5% of purchase price) PLUS moving costs PLUS reserves at closing. A $420,000 purchase with 10% down requires $42,000 down PLUS roughly $12,600 closing costs, so the real cash you need is closer to $55,000.
5. Not checking the 28/36 rule against your real take-home
Lenders use gross income for the 28/36 rule. Your actual take-home after taxes, 401(k), and health insurance is more like 65-75% of gross. A "lender approves" payment can leave almost nothing for everything else in your life. Always sanity-check the payment against your actual paycheck, not the gross number.
6. Treating PMI as permanent
PMI automatically drops off at 78% LTV (when you have paid down to 78% of the original purchase price), and you can request removal at 80% LTV. If your home appreciates significantly, you can request a re-appraisal and remove PMI even sooner. Many homeowners pay PMI for years longer than they need to because they never asked.
When the math says buy, and when it says wait
Buy now
- You can afford 28% or less of gross income on PITI
- You have 3-5% down plus closing costs plus 6 months of reserves
- You plan to stay 5+ years (refinance and selling costs make short stays a loser)
- Your job is stable and not location-dependent
- Renting in your area costs more than buying (use a rent vs buy calculator)
- Your credit score is 700+ to qualify for the best rates
Wait or rent
- Real PITI is over 35% of gross income
- You need to drain your emergency fund to make the down payment
- You might move within 3 years
- You have high-interest credit card debt that should be paid off first
- Your credit score is under 680 (rates 0.5-1% higher)
- You are buying because you feel "behind," not because the math works
Frequently asked questions
What are mortgage rates right now in April 2026?
According to Freddie Mac PMMS data released April 2, 2026, the 30-year fixed rate averaged 6.46%, the 15-year fixed averaged 5.77%, and the 5/1 ARM was around 6.15%. A year ago the 30-year was 6.64%. Over the past 52 weeks, rates have ranged from a low of 5.90% in late February to a high of 6.92% in May 2025. Forecasts from Fannie Mae and the MBA see rates staying in the 6.0-6.5% range through most of 2026.
How is a monthly mortgage payment actually calculated?
The principal and interest portion uses this formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (years × 12). For a $336,000 loan at 6.46% over 30 years, P = 336,000, r = 0.005383, n = 360, which gives a monthly P&I of about $2,113. But that is not your real payment. Add property tax, homeowners insurance, PMI if your down payment is under 20%, and HOA if applicable, and the real monthly number is usually $700-$1,500 higher.
What does PITI stand for and why does it matter?
PITI is Principal, Interest, Taxes, and Insurance — the four core components of a mortgage payment. Lenders use PITI (plus HOA and PMI when relevant) to qualify you. Most mortgage calculators online only show you P and I, which is why so many first-time buyers feel blindsided when their actual payment is hundreds of dollars higher. Our calculator shows the full PITI plus PMI and HOA so the number you see matches what you will actually pay each month.
How much house can I afford on my income?
The classic 28/36 rule says your housing costs (PITI plus HOA) should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. On a $120,000 salary, that means housing costs of about $2,800 a month. Lenders may approve you for more, but the lender does not know what you spend on groceries, childcare, or vacations. The safer move is to pick a payment you are comfortable with first, then ask your lender to pre-approve you for that amount.
What is PMI and how much does it cost?
Private mortgage insurance is required on conventional loans when your down payment is less than 20%. It protects the lender, not you. PMI typically runs 0.3% to 1.5% of the loan amount per year, with most borrowers paying 0.5% to 1.0%. On a $336,000 loan at 0.55%, that is about $154 per month. PMI automatically drops off once you reach 22% equity (78% LTV), and you can request removal at 80% LTV.
Should I put 20% down or buy a bigger house with less down?
There is no single right answer. Putting 20% down avoids PMI and lowers your monthly payment, but it also locks up cash that could be earning a 5% return in a high-yield savings account. Putting less down means you start building equity sooner if home prices rise. A $420,000 home with 5% down has roughly $200/month more in PMI but lets you keep about $63,000 in liquid savings. A common middle ground is 10% down, which keeps PMI lower while preserving some cash for closing costs and an emergency fund.
Is a 15-year or 30-year mortgage better?
A 15-year loan at 5.77% will save you a fortune in interest but the monthly payment is much higher. On a $336,000 loan, the 30-year at 6.46% costs about $2,113 a month with $424,800 in lifetime interest. The 15-year at 5.77% costs about $2,791 a month with $166,400 in lifetime interest. You save roughly $258,000 in interest at the cost of $678 more per month. If the higher payment crowds out retirement contributions, a 30-year with extra principal payments often beats a 15-year for total wealth building.
What are closing costs and how much should I budget?
Closing costs typically run 2% to 5% of the home price and cover lender fees, title insurance, appraisal, attorney fees, escrow setup, and prepaid taxes and insurance. On a $420,000 home, expect $8,400 to $21,000 in closing costs on top of your down payment. Some lenders offer "no-closing-cost" loans that roll the fees into a slightly higher rate — fine if you plan to move soon, expensive if you stay put.
What is the 28/36 rule lenders use?
The 28/36 rule is a debt-to-income guideline. The first number, 28%, caps your total monthly housing costs (PITI plus HOA) at 28% of your gross monthly income. The second, 36%, caps all your monthly debt payments combined (housing plus car loans, student loans, credit card minimums, child support) at 36% of gross income. Some lenders go higher, especially FHA which can stretch to 43% or even 50% with strong compensating factors. Just because you can borrow more does not mean you should.
How much do property taxes really vary by state?
A lot. According to the Tax Foundation, New Jersey has the highest average effective property tax rate at 2.47% of home value, while Hawaii has the lowest at 0.30%. On a $420,000 home, that is the difference between $10,374 a year in NJ and $1,260 in Hawaii. Same house, same loan, $760 more per month. When comparing two cities, always run the numbers with the actual local rate, not the national average of about 1.10%.
Why do most calculators show a payment lower than what lenders quote me?
Because most calculators only show principal and interest. Add property taxes (typically 0.30%-2.47% of home value annually), homeowners insurance ($1,500-$3,000 a year), PMI if you put less than 20% down (0.3%-1.5% of loan amount annually), and HOA fees (averaging $291/month per DoorLoop 2025 data), and the real monthly payment is often $600-$1,200 higher than the basic principal-and-interest figure.
Should I buy now or wait for rates to drop?
Olivia Stohle, a Chicago-based real estate broker at Compass, told Yahoo Finance in October 2025 that one of the biggest mistakes first-time buyers make is re-signing their lease and saying "we will try again next year when the market is better." Markets rarely cooperate. The conventional wisdom on Reddit is "date the rate, marry the house" — meaning if you can afford the home and the payment, lock in now and refinance later if rates fall. Waiting for the perfect moment usually means paying more for the same house.
How much should I keep in reserve for home maintenance?
Hippo Insurance recommends setting aside 1% to 3% of your home value each year for repairs and maintenance. On a $420,000 home, that is $4,200 to $12,600 annually, or $350 to $1,050 a month. A 2025 Bankrate study found the typical homeowner spends about $21,000 a year on "hidden" costs of ownership including maintenance, insurance, taxes, and utilities. None of that shows up in a mortgage calculator, but it should show up in your budget.
What credit score do I need for the best mortgage rate?
Conventional loans typically require 620 minimum, but the best rates go to borrowers with scores of 760 or higher. The difference between a 680 and a 760 score can be 0.5% on your rate, which on a $336,000 loan over 30 years is roughly $35,000 in extra interest. FHA loans accept scores as low as 580 with 3.5% down, or 500 with 10% down, but you pay mortgage insurance for the life of the loan. Pull your credit report at annualcreditreport.com a few months before applying so you have time to fix any errors.
How much can I save by shopping multiple lenders?
A Freddie Mac study found that most first-time homebuyers only get a quote from a single lender, even though shopping around is one of the easiest ways to save money. Sam Khater, Freddie Mac Chief Economist, has noted that buyers can potentially save thousands of dollars by getting multiple quotes. Getting just three quotes typically saves $1,500-$3,000 over the life of the loan. Five quotes is even better. The credit pulls from rate shopping all count as one inquiry if done within 14-45 days, so it does not hurt your score.
Mortgage glossary (plain English)
- Amortization
- The schedule that shows how each payment splits between principal and interest over the life of the loan.
- APR
- Annual Percentage Rate. Includes the interest rate plus most lender fees. APR is always slightly higher than the quoted rate. Compare lenders by APR, not just rate.
- ARM (Adjustable Rate Mortgage)
- A loan with a fixed rate for an initial period (5, 7, or 10 years), then adjusts annually based on a market index. Risky if you cannot refinance or sell when the fixed period ends.
- Conforming loan
- A conventional loan that meets Fannie Mae and Freddie Mac size limits ($766,550 in most areas for 2025-2026). Conforming loans get the best rates.
- DTI (Debt-to-Income)
- All your monthly debt payments divided by your gross monthly income. Lenders cap conventional loans at about 43-45% DTI, FHA up to 50% in some cases.
- Escrow
- An account your lender uses to collect monthly amounts for property tax and insurance, then pays the bills on your behalf. Required on most loans with less than 20% down.
- FHA loan
- A government-insured loan with looser credit requirements (580 score with 3.5% down) but mortgage insurance for the life of the loan.
- Jumbo loan
- A loan above the conforming limit. Rates are usually 0.25-0.50% higher and credit requirements are stricter.
- LTV (Loan-to-Value)
- Loan amount divided by home value. 80% LTV (20% down) avoids PMI on a conventional loan.
- Origination fee
- A lender fee to set up the loan, typically 0.5-1% of the loan amount. Negotiable.
- PITI
- Principal, Interest, Taxes, Insurance. The four core pieces of a mortgage payment.
- PMI
- Private Mortgage Insurance. Required on conventional loans when you put less than 20% down. Drops off at 78% LTV.
- Points (discount points)
- Upfront fees you can pay to lower your interest rate. One point equals 1% of the loan amount and typically reduces the rate by 0.25%. Worth it only if you stay in the home long enough to break even.
Data sources: Freddie Mac Primary Mortgage Market Survey (PMMS), April 2 2026; FRED series MORTGAGE30US; National Association of REALTORS Existing Home Sales Report, September 2025; Tax Foundation Facts & Figures 2025; DoorLoop HOA analysis 2025; Bankrate hidden costs of homeownership study 2025; Hippo Insurance maintenance reserve guidance.
Last updated: April 2026. Mortgage rates change daily. The rates shown are weekly averages from Freddie Mac and may differ from individual lender quotes. Always get a personalized rate quote before making a decision.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, legal, or tax advice. Actual loan terms depend on your credit profile, the lender, and the specific property. Consult a licensed mortgage professional and a financial advisor before signing a loan.