US Mortgage Calculator 2026
For a $400,000 home with 20% down ($80,000) at a fixed rate of 6.71% over 30 years, the monthly principal + interest payment is approximately $2,075. Adding property taxes (1.2% annual ≈ $400/month) and homeowner's insurance (~$150/month), the total monthly payment is around $2,625. If the down payment is less than 20%, PMI (private mortgage insurance) is added. This calculator uses Freddie Mac's weekly average rates (FRED API) and the standard amortization formula.
Frequently Asked Questions
How much down payment do I need to buy a home in the US?
The minimum down payment depends on the loan type: conventional loans require 3-5% minimum, FHA accepts 3.5%, VA and USDA can be 0%. However, with less than 20% down you'll pay PMI (private mortgage insurance), adding 0.3-1.5% annually on the loan balance. A 20% down payment eliminates PMI and significantly reduces your monthly payment.
What is PMI and when can it be removed?
PMI (Private Mortgage Insurance) protects the lender if you stop making payments. It's required when the down payment is less than 20% of the home's value. You can request PMI removal when your loan balance reaches 80% of the original property value. By law (Homeowners Protection Act), PMI is automatically canceled at 78% of the original value.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has lower rates (typically 0.5-0.75% less) and you pay much less total interest, but monthly payments are considerably higher. A 30-year mortgage offers lower monthly payments and greater financial flexibility. The best option depends on your situation: if you can comfortably afford the 15-year payments, you'll save significantly on interest over time.
What additional costs does a US mortgage have?
Besides principal and interest, your monthly payment typically includes: property taxes (0.5-2.5% annually depending on state), homeowner's insurance ($1,000-$3,000/year), and PMI if applicable. At closing you'll pay 2-5% of the price: appraisal, title, insurance, lender fees and discount points. Also consider HOA (if applicable), maintenance and utilities.
How does the interest rate affect my total mortgage cost?
The interest rate has a massive impact on total cost. For example, on a $320,000 loan over 30 years: at 6% you'd pay ~$370,000 in interest, at 7% it would be ~$446,000 — a difference of $76,000 for just 1% more in rate. That's why it's crucial to compare offers from multiple lenders. Current average rates are published weekly by Freddie Mac through the PMMS survey.