Mortgage Guide

A mortgage is a long-term loan used to buy a home. Your monthly payment is typically made up of principal, interest, property taxes, and insurance (often called PITI).

Key parts of a mortgage payment

• Principal: The amount you borrow.
• Interest: The cost of borrowing money.
• Taxes & Insurance: Monthly escrow for property tax and homeowners insurance.

What to enter in the calculator

• Home price: The purchase price.
• Down payment: Money you pay upfront (reduces the loan).
• Interest rate: Your annual rate (APR).
• Loan term: Commonly 15 or 30 years.
• Property tax & insurance: Annual estimates from listings or your lender.

How to read the results

The calculator shows your estimated monthly payment plus totals for interest and overall cost. Use this to compare scenarios like a bigger down payment or a different term.

Tips to lower your payment

• Increase your down payment (reduces principal).
• Shop for a better interest rate.
• Consider a longer term (lower payment, higher total interest).
• Check tax/insurance estimates for accuracy.

Common mistakes

• Ignoring taxes/insurance (payment will be higher than expected).
• Using outdated rates.
• Skipping PMI if down payment is under 20%.

This guide is educational and not financial advice. Always confirm numbers with your lender.