Question 1

How is my monthly mortgage payment calculated?

Accepted Answer

Your payment uses the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. This ensures the loan is exactly paid off at the end of the term.

Question 2

How much do extra mortgage payments save?

Accepted Answer

On a $300,000 loan at 6.5% over 30 years, an extra $200/month saves over $80,000 in interest and shortens the loan by about 6 years. Every extra payment reduces your principal immediately, which reduces the interest charged on every future payment. Use the Extra Payments section to see your exact savings.

Question 3

What is an amortization schedule?

Accepted Answer

An amortization schedule is a complete table showing every monthly payment broken down into principal and interest, plus the remaining balance after each payment. In the early years, most of your payment goes to interest. As the balance drops, more goes to principal. You can export the full schedule as a CSV file.

Question 4

Should I choose a 15-year or 30-year mortgage?

Accepted Answer

A 15-year mortgage typically costs 50–60% less in total interest compared to a 30-year mortgage at the same rate. However, the monthly payment is roughly 40–50% higher. Use Compare mode to see the exact difference for your loan amount and decide based on your monthly cash flow needs.

Question 5

Does this mortgage calculator include property taxes and insurance?

Accepted Answer

No — this calculator covers principal and interest (P&I) only. Your actual monthly payment to the lender may include property taxes, homeowners insurance, and PMI (if your down payment is under 20%). The full PITI amount will be disclosed in your official loan estimate.

Question 6

Can I compare two different loan scenarios?

Accepted Answer

Yes — click "Compare" at the top of the calculator. Enter different home prices, interest rates, or loan terms for Scenario A and Scenario B. The calculator shows both payment schedules side by side and tells you exactly which option costs less over the life of the loan.

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