Mortgage Payment Calculators

Understanding Mortgage Payments

Your mortgage payment is likely the largest monthly expense you will face as a homeowner. It consists of four parts collectively known as PITI: principal, interest, taxes, and insurance. On a $350,000 loan at 6.5% for 30 years, your monthly principal and interest alone would be about $2,212. Add property taxes ($300-$500/month in most counties) and homeowners insurance ($100-$200/month), and the full payment lands between $2,600 and $2,900.

Small rate differences have an outsized impact over 30 years. The difference between 6.5% and 7.0% on a $350,000 loan is roughly $123 per month, which adds up to over $44,000 in extra interest across the life of the loan. That is why comparing lender quotes and understanding your rate options matters so much. If you are unsure how much home you can realistically target, our home affordability calculators can help you set a budget before you start shopping.

Amortization schedules show exactly how each payment splits between principal and interest. In the first year of that $350,000 loan at 6.5%, about $1,896 of each $2,212 payment goes to interest and only $316 reduces your balance. By year 20 the split reverses, with $1,308 going to principal. If you are already a homeowner and rates have dropped, check our mortgage refinance calculators to see whether refinancing could lower your monthly cost.