Mortgage Calculator USA
Enter your home price, down payment, interest rate, and loan term to calculate your full monthly payment — including principal & interest, property tax, homeowner’s insurance, PMI, and HOA fees.
How a US Mortgage Works
The PMT Formula
Monthly P&I is calculated with the standard annuity formula:
P = principal r = monthly rate (annual rate ÷ 12) n = total months
Worked Example
$400,000 home · $80,000 down · 7% rate · 30-year term:
- Principal = $400,000 − $80,000 = $320,000
- Monthly rate r = 7% ÷ 12 = 0.5833%
- n = 30 × 12 = 360 months
- M = 320,000 × [0.005833 × 1.005833^360] / [1.005833^360 − 1] = $2,129/month
- Total paid = $2,129 × 360 = $766,440 Interest = $446,440
US Loan Types Compared
| Loan Type | Min Down | Credit Score | PMI? | Notes |
|---|---|---|---|---|
| Conventional | 3% | 620+ | If <20% | Fannie Mae / Freddie Mac backed |
| FHA | 3.5% | 580+ | Always (MIP) | HUD backed; popular for first-time buyers |
| VA | 0% | No minimum | No | Veterans & active-duty military only |
| USDA | 0% | 640+ | Guarantee fee | Rural areas only |
| Jumbo | 10–20% | 700+ | Varies | Loan > conforming limit ($766,550 in 2024) |
2025 US Mortgage Rate Benchmarks (30-year fixed)
| Lender / Program | Typical Rate Range | Notes |
|---|---|---|
| Wells Fargo | 6.75%–7.50% | Conventional 30-yr |
| JPMorgan Chase | 6.80%–7.60% | Various programs |
| Bank of America | 6.70%–7.40% | Conventional & FHA |
| Rocket Mortgage | 6.90%–7.70% | Online lender |
| United Wholesale Mortgage | 6.65%–7.35% | Wholesale channel |
| US Bancorp | 6.80%–7.55% | Regional bank |
| FHA (national avg) | 6.50%–7.25% | Government-backed |
| VA (national avg) | 6.25%–7.00% | Veterans / military |
Average Property Tax Rates by State
| State | Effective Rate | State | Effective Rate |
|---|---|---|---|
| New Jersey | 2.23% | California | 0.73% |
| Illinois | 2.08% | Florida | 0.91% |
| Connecticut | 1.92% | Texas | 1.68% |
| New Hampshire | 1.93% | New York | 1.40% |
| Vermont | 1.90% | Hawaii | 0.28% |
| Wisconsin | 1.85% | Washington | 0.98% |
| Michigan | 1.54% | Colorado | 0.51% |
PMI Rules (Homeowners Protection Act)
PMI is required for conventional loans with LTV > 80%. It is automatically cancelled when LTV reaches 78% of the original purchase price. Typical cost: 0.2–2% of loan/year depending on credit score and LTV. For FHA loans, mortgage insurance premium (MIP) applies for the life of the loan if down payment < 10%.
About Rate Data — API vs Manual Updates
The rate benchmarks on this page are updated manually each month. For live rates you have these options:
- Freddie Mac PMMS API — free weekly national average for 30-yr and 15-yr fixed. No per-lender breakdown.
- CFPB Rate Checker API — rate distributions by state, credit score, LTV. Free, no key required.
- Bankrate / Zillow / Mortgage News Daily APIs — per-lender rates but require paid subscription.
- Manual monthly update — simplest approach: update the rate table in the controller once a month based on published surveys. No API cost, no external dependency.
Recommendation: Use the free CFPB or Freddie Mac API for weekly auto-updates, and keep this manual table as a fallback. Rates shown are indicative — users should always verify with their lender.
Frequently Asked Questions
How do I calculate my monthly mortgage payment?
Use the PMT formula: M = P × [r(1+r)^n] / [(1+r)^n − 1]. P = principal, r = monthly rate (annual ÷ 12), n = total months. Enter your numbers above for an instant result.
What is PMI and when is it required?
PMI (Private Mortgage Insurance) is required on conventional loans with less than 20% down (LTV > 80%). It costs 0.2–2% of the loan per year and is automatically cancelled when your LTV hits 78% of the original purchase price.
What is the minimum down payment for a US mortgage?
Conventional: 3% (PMI applies); FHA: 3.5% with 580+ credit score; VA: 0% for eligible veterans; USDA: 0% for qualifying rural properties.
How much house can I afford?
Most lenders use the 28/36 rule: monthly PITI (principal, interest, taxes, insurance) should not exceed 28% of gross monthly income; all debt payments should not exceed 36%. At $8,000/month income, target a mortgage payment under $2,240.
What is the difference between a 15-year and 30-year mortgage?
A 15-year mortgage has higher monthly payments but far less total interest and faster equity build-up. A 30-year mortgage has lower payments but costs roughly 2–3× more in interest. Example: $300,000 at 7% — 30-year interest = ~$418,000; 15-year interest = ~$186,000.
References
- Freddie Mac Primary Mortgage Market Survey (PMMS) — weekly national rate averages.
- Consumer Financial Protection Bureau (CFPB) — Mortgage Disclosure Improvement Act.
- Department of Housing and Urban Development (HUD) — FHA loan requirements.
- Fannie Mae Selling Guide — conventional loan eligibility and PMI requirements.
- U.S. Census Bureau, American Community Survey — average property tax data.
