Mortgage Calculator

Understanding Your Mortgage Amortization

Buying a home is likely the largest purchase you will ever make. A mortgage calculator is an essential tool to understand exactly how much house you can afford and, more importantly, how much that house will actually cost you over 30 years.

How Mortgage Interest Works

Most home loans use an amortization schedule. This means that in the early years of your mortgage, the vast majority of your monthly payment goes toward paying off interest, not the principal balance of the home. As time goes on, this shifts, and you begin to pay down the debt faster.

The 15-Year vs. 30-Year Debate

One of the biggest financial decisions you will face is choosing a loan term. While a 30-year mortgage offers lower monthly payments, the total interest paid is significantly higher. A 15-year mortgage will have higher monthly payments, but you could save hundreds of thousands of dollars in interest.

Example: On a $300,000 loan at 6%, a 30-year term results in over $347,000 in interest payments alone—more than the original value of the loan!