Mortgage Calculator

28/36 rule: max 28% of gross monthly income on housing costs, max 36% on total debt. Example: $6,000/month income → max housing $1,680/month. At 6.5% for 30 years, $1,680/month supports ~$266,000 loan. Add your down payment to find max home price. Enter your target monthly payment in the calculator to see how much you can borrow.

PMI (Private Mortgage Insurance) is required when down payment is less than 20%. Cost: 0.2–2% of loan amount per year. Example: $300,000 loan at 1% PMI = $250/month. Automatically cancelled when equity reaches 20% (LTV drops to 80%). Protects the lender, not you.

15-year: lower rate (0.5–0.75% less), pays off faster, total interest dramatically lower — but monthly payment 40–50% higher. 30-year: lower monthly payments, more flexibility. $300,000 at 6.5%: 30-year costs $382,560 in interest; 15-year costs $171,600 — saving ~$211,000. Consider whether the extra monthly payment could outperform that in investments.

$300,000 at 6.5% for 30 years ($1,896/month). Extra $100/month: pay off 3yr 10mo early, save $44,665. Extra $200/month: pay off 6yr 5mo early, save $73,264. Extra $500/month: pay off 12yr 5mo early, save $131,960. Check for prepayment penalties first.