Mortgage Payment Calculator 2026: Monthly Payment Estimator
On a $350,000 home with 20% down ($280,000 loan) at 6.5% interest on a 30-year fixed mortgage, your principal and interest payment is $1,770/month. Add property taxes (~$321/month), homeowner's insurance (~$150/month), and your total PITI payment is approximately $2,241/month. With less than 20% down, add PMI of $117–$350/month.
Monthly Payment (P&I) = Loan Amount × [r(1+r)^n] ÷ [(1+r)^n – 1], where r = monthly rate, n = total payments
Your monthly mortgage payment is the single largest recurring expense in homeownership, and understanding exactly what you will owe each month is critical for budgeting. Our Mortgage Payment Calculator breaks down your total payment into principal, interest, property taxes, homeowner's insurance, and PMI so you can see exactly where every dollar goes.
With average 30-year fixed mortgage rates at approximately 6.4% in April 2026 according to the Freddie Mac Primary Mortgage Market Survey, a typical $350,000 home purchase results in a total monthly payment of $2,100–$2,600 depending on your down payment, location, and credit score. Use this calculator to get your personalized number.
What This Means
Your total monthly payment includes four components, often called PITI: Principal (paying down the loan balance), Interest (the lender's fee for the loan), Taxes (property taxes collected via escrow), and Insurance (homeowner's insurance plus PMI if applicable). In the early years of a 30-year mortgage, roughly 70–80% of your payment goes toward interest, with the balance shifting toward principal over time through amortization.
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What's Included in Your Monthly Mortgage Payment
Most homeowners pay their mortgage through an escrow account that bundles multiple costs into one monthly payment. Here is what each component covers:
Principal
The portion of your payment that reduces your loan balance. On a $280,000 loan at 6.5%, only $253 of your first $1,770 payment goes to principal. By year 15, that rises to $650, and by year 28, nearly all of your payment reduces the balance.
Interest
The cost of borrowing money. At 6.5% on a $280,000 loan, you will pay $1,517 in interest in your first month alone. Over the full 30-year term, total interest paid is approximately $357,000 — more than the original loan amount.
Property Taxes
Collected monthly via escrow and paid to your county. The national average effective property tax rate is 1.1%, meaning $3,850/year ($321/month) on a $350,000 home. Rates range from 0.31% in Hawaii to 2.23% in New Jersey.
Homeowner's Insurance
Protects your home against fire, theft, and natural disasters. Average annual premiums range from $1,200 to $3,000 depending on location, coverage, and home value. Your lender requires this coverage as long as you have a mortgage.
Private Mortgage Insurance (PMI)
Required if your down payment is less than 20%. PMI costs 0.5–1.5% of the loan amount annually ($1,400–$4,200/year on a $280,000 loan). PMI automatically cancels when you reach 78% loan-to-value ratio.
| Component | $350K Home, 20% Down | $350K Home, 10% Down | $350K Home, 3.5% Down |
|---|---|---|---|
| Principal & Interest | $1,770 | $1,991 | $2,133 |
| Property Taxes | $321 | $321 | $321 |
| Homeowner's Insurance | $150 | $150 | $150 |
| PMI | $0 | $197 | $280 |
| Total Monthly PITI | $2,241 | $2,659 | $2,884 |
15-Year vs 30-Year Mortgage: Complete Comparison
The loan term you choose dramatically affects both your monthly payment and total cost. Here is a side-by-side comparison for a $280,000 loan:
| Feature | 30-Year Fixed | 15-Year Fixed | Difference |
|---|---|---|---|
| Interest Rate (2026 avg) | 6.50% | 5.80% | 0.70% |
| Monthly P&I | $1,770 | $2,334 | +$564/mo |
| Total Interest Paid | $357,226 | $140,090 | -$217,136 |
| Total Cost (P+I) | $637,226 | $420,090 | -$217,136 |
| Payoff Date | April 2056 | April 2041 | 15 years earlier |
The 15-year mortgage saves $217,136 in interest but requires an extra $564/month. The right choice depends on your financial goals:
- Choose 30-year if: You want the lowest possible required payment, plan to invest the difference, or need budget flexibility.
- Choose 15-year if: You can comfortably afford the higher payment, want to build equity faster, and prioritize being mortgage-free sooner.
Pro tip: Take a 30-year mortgage but make extra principal payments when you can. This gives you the safety of lower required payments with the option to pay off early. There is no prepayment penalty on most conventional mortgages.
How Interest Rates Affect Your Monthly Payment
Interest rates have an enormous impact on your monthly payment and total borrowing cost. Here is how different rates affect a $280,000 30-year fixed mortgage:
| Interest Rate | Monthly P&I | Total Interest | Total Cost |
|---|---|---|---|
| 5.0% | $1,503 | $261,082 | $541,082 |
| 5.5% | $1,589 | $292,162 | $572,162 |
| 6.0% | $1,679 | $324,376 | $604,376 |
| 6.5% | $1,770 | $357,226 | $637,226 |
| 7.0% | $1,863 | $390,726 | $670,726 |
| 7.5% | $1,958 | $424,882 | $704,882 |
| 8.0% | $2,054 | $459,696 | $739,696 |
Each 0.5% increase in rates adds approximately $90 to your monthly payment and $33,000 to total interest over 30 years. This is why rate shopping matters — getting a rate just 0.25% lower saves approximately $16,000 over the life of the loan.
How to Get the Lowest Rate in 2026
- Credit score above 740: Qualifies for the best conventional rates
- 20%+ down payment: Eliminates PMI and reduces lender risk
- Shop at least 3–5 lenders: Rates can vary 0.5% or more between lenders
- Consider buying points: Each point (1% of loan) typically reduces your rate by 0.25%
- Lock your rate: When you find a good rate, lock it for 30–60 days to protect against increases
Understanding Mortgage Amortization
Amortization is the process by which your monthly payments gradually shift from mostly interest to mostly principal over the loan term. Here is how amortization works on a $280,000 30-year mortgage at 6.5%:
| Year | Annual Payment | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|---|
| 1 | $21,240 | $3,092 | $18,148 | $276,908 |
| 5 | $21,240 | $3,965 | $17,275 | $262,443 |
| 10 | $21,240 | $5,478 | $15,762 | $240,254 |
| 15 | $21,240 | $7,571 | $13,669 | $209,025 |
| 20 | $21,240 | $10,462 | $10,778 | $165,884 |
| 25 | $21,240 | $14,458 | $6,782 | $107,180 |
| 30 | $21,240 | $19,970 | $1,270 | $0 |
In year 1, 85% of your payment goes to interest and only 15% to principal. By year 20, the split is roughly 50/50. By year 30, almost everything goes to principal. This front-loaded interest structure is why making extra principal payments early in the loan has the biggest impact — an extra $200/month starting in year 1 can shave 5+ years off your loan and save over $75,000 in interest.
Types of Mortgages Available in 2026
| Mortgage Type | 2026 Avg Rate | Min Down | Min Credit Score | Best For |
|---|---|---|---|---|
| 30-Year Fixed | 6.4% | 3–20% | 620 | Most buyers — predictable payments |
| 15-Year Fixed | 5.8% | 3–20% | 620 | Faster payoff, lower total cost |
| 5/1 ARM | 5.9% | 5–20% | 620 | Moving/refinancing within 5 years |
| 7/1 ARM | 6.1% | 5–20% | 620 | Moving/refinancing within 7 years |
| FHA Loan | 6.2% | 3.5% | 580 | Lower credit, first-time buyers |
| VA Loan | 5.9% | 0% | None* | Veterans, active military |
| USDA Loan | 6.0% | 0% | 640 | Rural properties |
| Jumbo Loan | 6.7% | 10–20% | 700 | Loans above $766,550 |
*VA loans have no minimum credit score requirement by the VA, but most lenders require 620+.
Adjustable-Rate Mortgages (ARMs) offer a lower initial rate that adjusts after the fixed period. A 5/1 ARM at 5.9% starts $85/month cheaper than a 30-year fixed at 6.4% on a $280,000 loan. However, after 5 years, the rate can increase up to 5% over the initial rate (to a maximum of 10.9%). ARMs are best if you plan to sell or refinance before the adjustment period begins.
For UK mortgage calculations including stamp duty and different lending criteria, visit our sister site UK Calculator.
The Power of Extra Mortgage Payments
Making extra payments toward principal is one of the most powerful wealth-building strategies available. Here is the impact of extra payments on a $280,000 30-year mortgage at 6.5%:
| Extra Monthly Payment | Years to Pay Off | Years Saved | Interest Saved |
|---|---|---|---|
| $0 (minimum only) | 30.0 | — | — |
| $100 | 25.8 | 4.2 | $62,840 |
| $200 | 22.6 | 7.4 | $108,350 |
| $300 | 20.1 | 9.9 | $142,200 |
| $500 | 16.8 | 13.2 | $190,450 |
| 1 extra payment/year | 25.5 | 4.5 | $65,200 |
Easiest strategy: Make one extra mortgage payment per year by dividing your monthly payment by 12 and adding that amount to each payment. On a $1,770/month payment, add $147.50/month. This simple strategy saves $65,200 in interest and pays off your mortgage 4.5 years early.
Recommended Mortgage Resources
These books and resources can help you make smarter mortgage decisions:
- Mortgage Management For Dummies by Eric Tyson & Ray Brown — Comprehensive guide to choosing, applying for, and managing your mortgage.
- The Millionaire Real Estate Investor by Gary Keller — Strategic thinking about real estate financing and wealth building through property.
- The Book on Rental Property Investing by Brandon Turner — Understanding mortgage structures for investment properties.
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Frequently Asked Questions
What is the mortgage payment on a $300,000 house?
With 20% down ($240,000 loan) at 6.5% on a 30-year fixed mortgage, the principal and interest payment is $1,517/month. Add property taxes (~$275/month at the 1.1% national average) and homeowner's insurance (~$135/month), and your total monthly PITI payment is approximately $1,927/month. With only 10% down, add PMI of $169/month for a total of approximately $2,270/month.
How much is PMI and when does it go away?
Private Mortgage Insurance costs 0.5–1.5% of your loan amount annually. On a $280,000 loan, that is $117–$350/month. The exact cost depends on your credit score, down payment percentage, and lender. PMI automatically terminates when your loan balance reaches 78% of the original home value based on the amortization schedule. You can also request removal at 80% LTV. To cancel PMI faster, make extra principal payments or get a new appraisal if your home has appreciated significantly.
Is it better to get a 15-year or 30-year mortgage?
A 15-year mortgage saves significantly on total interest ($217,000+ on a $280,000 loan) and builds equity faster, but requires a higher monthly payment ($564/month more). Choose a 15-year if you can comfortably afford the higher payment without sacrificing emergency savings or retirement contributions. Choose a 30-year if you want lower required payments and more budget flexibility. A middle-ground strategy is to take a 30-year mortgage but voluntarily make extra payments when finances allow — this gives you the safety net of lower required payments with the option to pay off early.
What credit score do I need for the best mortgage rate?
A credit score of 740 or above typically qualifies you for the best conventional mortgage rates. Scores of 760+ may get slightly better pricing from some lenders. The difference between a 620 score and a 760+ score can be 1.0–1.5% in interest rate, which translates to $150–$250/month on a typical loan. Before applying for a mortgage, check your credit reports for errors, pay down credit card balances below 30% of limits, and avoid opening new credit accounts.
Should I buy mortgage points to lower my rate?
Mortgage points (also called discount points) cost 1% of the loan amount and typically reduce your rate by 0.25%. On a $280,000 loan, one point costs $2,800 and saves approximately $45/month. The break-even point is $2,800 ÷ $45 = 62 months (about 5 years). If you plan to stay in the home for more than 5 years, buying points usually saves money long-term. If you might move or refinance sooner, keep the cash. Points are also tax-deductible in the year they are paid.
How much house can I afford on a $5,000/month salary?
On a $5,000/month gross salary ($60,000/year) with no existing debts, the 28% front-end ratio allows $1,400/month for housing costs. After subtracting estimated taxes and insurance (~$400/month), approximately $1,000 is available for principal and interest, supporting a loan of about $158,000. With a 20% down payment, you could afford a home around $198,000. With lower down payments (3.5–5%), your maximum purchase price drops to $165,000–$175,000 due to PMI costs.