Precision Utility
US Mortgage
Calculator
Avg 30-Yr Rate
6.5%
Avg US Home
$420k
Work out your monthly mortgage payments in seconds. Enter your home price, down payment, interest rate and loan term — the calculator does the rest. You'll see your monthly payment, total interest paid, loan-to-value ratio and a full year-by-year amortization schedule. Built for US homebuyers, refinancers and first-time buyers.
Loan Parameters
Estimated Monthly Payment
$1,769.47
Loan Amount
$280,000
Total Interest
$357,010
Loan Amount
$280,000
Total Interest
$357,010
Total Repayable
$637,010
Loan-to-Value
80.0%
How the US mortgage calculator works
Start by entering the home price and your down payment. The calculator works out your loan amount automatically — that's the amount you'll borrow from the lender.
Next, set the interest rate and loan term. The most common US mortgage is the 30-year fixed, though 15-year and 20-year terms are also popular. The rate you enter should be the annual interest rate quoted by your lender.
Hit calculate and you'll see your estimated monthly payment (principal and interest), the total amount you'll repay over the full term, and how much of that is pure interest. The payment structure bar shows the split between principal and interest at a glance.
Open the amortization schedule to see exactly how your balance reduces year by year. In the early years most of your payment covers interest — over time, more goes toward paying down the actual debt.
US mortgage rates and loan types in 2025
The US mortgage market offers several loan types. The 30-year fixed-rate mortgage is the most popular, with average rates around 6.5% as of 2025. A 15-year fixed typically runs about 0.5–0.75% lower, saving significant interest over the life of the loan.
Key facts for US homebuyers in 2025:
- The average US home price is approximately $420,000 according to the National Association of Realtors
- Conventional loans typically require 5–20% down. Putting down 20% eliminates the PMI requirement
- FHA loans allow down payments as low as 3.5% with a credit score of 580+, making them popular with first-time buyers
- VA loans (for veterans and active military) and USDA loans (for rural areas) may require zero down payment
- Mortgage rates are influenced by the Federal Reserve's federal funds rate, your credit score, loan type and down payment size
This calculator uses a standard fully amortizing (principal and interest) formula. Your actual monthly housing cost will also include property taxes, homeowners insurance and potentially PMI or HOA fees.
What You Need to Know
Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20% of the home price. PMI typically costs between 0.5% and 1% of the loan amount per year, added to your monthly payment. You can request PMI removal once your loan-to-value ratio reaches 80%.
Property taxes vary significantly by state and county. The national average effective property tax rate is about 1.1% of the home's assessed value per year. States like New Jersey (2.2%), Illinois (2.1%) and Texas (1.7%) have some of the highest rates, while Hawaii (0.3%) and Alabama (0.4%) have some of the lowest.
Homeowners insurance averages around $1,500–$2,000 per year nationally but varies widely by location and coverage level. Lenders require proof of insurance before closing.
When budgeting for a home purchase, remember to account for closing costs (typically 2–5% of the loan amount), which include appraisal fees, title insurance, attorney fees and origination charges.
Frequently asked questions
How do I calculate my monthly mortgage payment?
Enter your home price, down payment, interest rate and loan term into the calculator above. It uses a standard amortization formula to compute your fixed monthly payment, total interest cost and loan-to-value ratio instantly.
What is a good down payment for a house in the US?
Conventional loans typically require 5–20% down. Putting down 20% or more avoids private mortgage insurance (PMI). FHA loans allow as little as 3.5% down, while VA and USDA loans may require no down payment at all.
What is the average 30-year fixed mortgage rate in 2025?
As of 2025, the average 30-year fixed mortgage rate hovers around 6.5%, though rates vary by lender, credit score and loan type. Check Freddie Mac's PMMS for the latest weekly averages.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20%. PMI typically costs 0.5–1% of the loan amount per year. You can request PMI removal once your equity reaches 20%.
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage gives lower monthly payments but you pay significantly more interest over the life of the loan. A 15-year mortgage has higher monthly payments but saves tens of thousands in interest and builds equity faster.
What is loan-to-value (LTV) and why does it matter?
LTV is the percentage of the home's value that you're borrowing. A $280,000 loan on a $350,000 home is 80% LTV. Lower LTV means less risk for the lender, which typically results in better interest rates and no PMI requirement.
What is an amortization schedule?
An amortization schedule shows how each mortgage payment splits between interest and principal over the full loan term. In the early years, most of your payment goes toward interest. Over time, more goes toward paying down the principal balance.
What are FHA loans and who qualifies?
FHA loans are government-backed mortgages insured by the Federal Housing Administration. They require as little as 3.5% down with a credit score of 580+. FHA loans are popular with first-time homebuyers due to their more flexible qualification requirements.