Home Loan Calculator: Your Real Monthly Payment
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We stress-tested this calculator with a median-priced home of $417,500 (the National Association of Realtors' latest median for existing homes) and 10% down. At this week's 7.40% average, the principal and interest alone come to $2,602 a month — but once we added a 1% property tax, a $3,057-a-year insurance policy and private mortgage insurance, the real payment landed near $3,323. That gap is the most common budgeting mistake we see: online "payment" figures that stop at principal and interest can understate the check you actually write by several hundred dollars.
A home loan payment is four or five bills stapled together: principal, interest, property tax, homeowners insurance and, if you put less than 20% down, mortgage insurance. The calculator above prices all of them, using Freddie Mac's latest weekly average rate as a starting point and the actual fee rules for FHA, VA and USDA loans. Below it you'll find short answers to the questions buyers ask most, side-by-side loan comparisons on your own numbers, and plain advice for specific situations — low credit, a small down payment, military service, retirement, self-employment and a rate that feels too high to stomach.
Key Takeaways
The short answers, before the details. Rate-based figures below update automatically each week.
7.40% for a 30-year fixed and 6.71% for a 15-year fixed, according to Freddie Mac's survey dated Oct 15, 2026. Your own quote can land above or below that depending on credit, down payment, points and loan type.
About $692 in principal and interest on a 30-year loan at today's average. Taxes, insurance and any mortgage insurance come on top.
No. Conventional loans start at 3% down for eligible buyers, FHA at 3.5% with a 580 score, and VA and USDA loans at zero. Twenty percent simply avoids mortgage insurance on a conventional loan.
On a conventional loan you can ask to cancel it once your balance hits 80% of the home's original value, and it must end automatically at 78% if you're current. FHA premiums last 11 years with 10% or more down — otherwise for the life of the loan.
$832,750 for a one-unit home in most of the country, rising to as much as $1,249,125 in high-cost counties. Above your county's limit, lenders apply stricter jumbo rules.
On the sample loan above, the 15-year costs $715 more each month but saves $339,573 in interest. Worth it only if the bigger payment leaves you a real emergency cushion.
Yes. Interest on up to $750,000 of mortgage debt stays deductible permanently, and mortgage insurance premiums are deductible again starting with the 2026 tax year if your AGI is $100,000 or less (phasing out by $109,000). You only benefit if you itemize.
Waiting is a bet, not a plan. The Federal Reserve raised its key rate in September and the 10-year Treasury yield has pushed above 5%. Buy when the payment fits your budget today; refinance later only if the math clears your closing costs.
Your down payment plus closing costs, which commonly run 2% to 5% of the loan, plus prepaid taxes and insurance for your escrow account. The calculator shows a combined estimate.
Today's Mortgage Rates and What's Moving Them
Freddie Mac's weekly survey put the average 30-year fixed rate at 7.40% and the 15-year at 6.71% on Oct 15, 2026 — unchanged from the week before, and compared with 6.27% a year earlier. Over the past 52 weeks the 30-year average ranged from 5.98% (Feb 26, 2026) to 7.40% (Oct 15, 2026).
Mortgage rates don't follow the Federal Reserve's policy rate directly. They track the 10-year Treasury yield plus a spread that covers lender risk and costs, which is why a Fed move can be "priced in" weeks before it happens. This fall that chain has worked against borrowers. The Fed lifted its federal funds target by a quarter point in September, to a range of 3.75% to 4.00% — its first increase since July 2023 — citing elevated inflation and geopolitical uncertainty. Consumer prices were running 3.7% above a year earlier in September, and the 10-year Treasury yield crossed 5% near the end of that month. Economists have also pointed to heavy government borrowing, weak demand at Treasury auctions and record AI-related debt issuance as forces keeping long-term yields high.
For a sense of scale: Freddie Mac's survey hit its all-time low of 2.65% in January 2021 and its all-time high of 18.63% in October 1981. Today's level is high compared with the last fifteen years, but close to the long-run norm.
Freddie Mac's figure describes conventional, conforming 30-year purchase loans for borrowers with strong credit and 20% down. Daily lender data in mid-October showed FHA and VA quotes running somewhat below conventional ones, while jumbo pricing and lower credit tiers often run higher. Discount points also muddy comparisons: a quote that looks a quarter-point cheaper may include a point you pay up front. Compare the APR and Section A of each Loan Estimate, not the headline rate.
FHA vs Conventional vs VA vs USDA on Your Numbers
Same house, same rate, same taxes and insurance — only the loan program changes. This table recalculates whenever you edit the calculator.
| Loan option | Down payment | Upfront fee | Monthly payment | Mortgage insurance | Insurance ends | Cash to close | Total interest |
|---|---|---|---|---|---|---|---|
| Calculating… | |||||||
Calculating which option costs least for your inputs…
Program rules at a glance
| Program | Minimum down | Credit score | Mortgage insurance | Upfront fee | Loan limit | Best fit |
|---|---|---|---|---|---|---|
| Conventional | 3% (eligible first-time and income-limited buyers); 5% otherwise | No fixed agency minimum since Nov. 2025; lenders often want 620+ | PMI under 20% down; cancel at 80% | None | $832,750 baseline; up to $1,249,125 | Good credit, 5%+ down |
| FHA | 3.5% at 580+; 10% at 500–579 | 500 minimum | 0.15%–0.75% a year; often for life | 1.75% (can be financed) | $541,287 to $1,249,125 by county | Lower scores, higher debts |
| VA | 0% | Set by lender | None | 1.25%–3.3%; waived with VA disability pay | No limit with full entitlement | Eligible veterans, service members, surviving spouses |
| USDA | 0% | Set by lender | 0.35% a year, life of loan | 1% (can be financed) | Household income caps by county | Eligible rural and many suburban areas |
| Jumbo | Often 10%–20% | Often 700+ | Varies by lender | None standard | Above your county's conforming limit | High-cost markets, large reserves |
30-year vs 20-year vs 15-year on your loan
| Term | Rate used | Principal & interest | Total interest | Interest saved vs 30-year | Paid off |
|---|---|---|---|---|---|
| Calculating… | |||||
20-year and 10-year rates are estimated from Freddie Mac's 30- and 15-year averages; the term you choose above uses the rate in the calculator.
What to Do in Your Situation
A calculator gives you a number. These are the decisions behind it, sorted by the circumstances that change the answer most.
You're in good company: the median first-time buyer put down 10% in NAR's latest annual profile, while repeat buyers put down 23%. The real choice is conventional with PMI versus FHA. With a credit score of roughly 700 or better, conventional usually wins, because private mortgage insurance is priced on your credit and can be cancelled, while FHA's annual premium is the same for everyone and stays for the life of the loan unless you put at least 10% down. Below about 680, FHA often comes out cheaper month to month. Toggle the loan type above and watch the "Mortgage insurance" and "Insurance ends" columns in the comparison table — that's the whole trade-off on one screen.
One move that saves real money: if your down payment is close to a threshold, stretch to reach it. PMI pricing typically steps down at 5%, 10% and 15% down. In our testing, going from 9% to 10% down on a mid-priced home cut the estimated PMI by more than the extra cash would earn in a savings account.
A VA loan is usually the best deal in housing finance: no down payment and no monthly mortgage insurance. The cost is a one-time funding fee — 2.15% of the loan on a first purchase with under 5% down, 3.3% if you've used the benefit before, dropping to 1.5% with 5% down and 1.25% with 10% down. That fee can be rolled into the loan. If you receive VA compensation for a service-connected disability, or you're a Purple Heart recipient, the fee is waived entirely, and if a disability rating is approved retroactively after you close, you may be able to get the fee refunded. Choose "VA" above and set "VA loan use" to see each case.
Watch one thing: sellers sometimes worry about VA appraisal requirements. A preapproval letter from a lender experienced with VA loans and a clean offer usually settles it.
Check USDA eligibility before assuming you need a down payment. The USDA Guaranteed Loan program covers many small towns and outer suburbs, not just farmland, and it requires nothing down. For loans obligated since October 1, 2025, the upfront guarantee fee is 1% and the annual fee is 0.35%. The catch is income: your total household income has to fall under the limit for your county, and that counts every adult in the home, not just the borrowers. USDA's online eligibility map and income tool take about five minutes.
The rules shifted in your favor recently. For loans submitted after November 16, 2025, Fannie Mae's automated underwriting no longer requires a fixed minimum credit score for an approval, and the agencies now accept VantageScore 4.0 alongside classic FICO — a model that can count rent and utility payment history. That doesn't guarantee approval: lenders and mortgage insurers can still set their own floors, and a low score still raises your rate and PMI. FHA remains the most forgiving route, with 3.5% down at 580 and 10% down from 500 to 579.
Before you apply, pull your free reports at AnnualCreditReport.com and dispute errors. Paying a credit card balance down below 10% of its limit a month or two before your application is one of the fastest legitimate score boosts we've seen.
Age can't legally be held against you, but lenders still need to see income that will continue — Social Security, pensions and regular retirement-account withdrawals all count. Many lenders can also qualify you using a portion of your savings ("asset depletion"), which helps retirees with large balances and modest monthly income. If you're 62 or older, a HECM for Purchase, the FHA reverse mortgage built for buying a home, lets you put down a large lump sum and never make a monthly mortgage payment, though you still owe taxes, insurance and upkeep. HUD set the HECM maximum claim amount at $1,249,125 for this year. Downsizers should also ask the county about senior property-tax exemptions or freezes, which can shrink the tax line in the calculator dramatically.
Expect lenders to average your last two years of tax returns, after write-offs. That's the trap: the deductions that cut your tax bill also cut the income a lender can count. If your returns understate what you earn, ask about bank-statement loans, which qualify you on 12 to 24 months of deposits. They're legal and common, but usually carry higher rates and larger down payments, so run both rates through the calculator before deciding the extra cost is worth it.
Try three tools before you walk away. First, a permanent buydown: each discount point costs 1% of the loan and typically trims the rate by a fraction of a point. On the sample loan, a rate a quarter-point lower saves about $64 a month — divide the points' cost by that saving to find your break-even month. Second, a seller-paid temporary buydown (a "2-1" lowers your rate by two points in year one and one point in year two); in a slow market, sellers will often fund one instead of cutting price. Third, an adjustable-rate mortgage, which can make sense if you're confident you'll sell or refinance within its fixed period. Read the caps carefully. A 50-year term is not the answer: federal Qualified Mortgage rules cap terms at 30 years, and the longer schedule would add enormous interest.
Above $832,750 in most counties — or above your own county's higher limit in places like coastal California, metro New York and Hawaii — you leave Fannie Mae and Freddie Mac territory and enter jumbo lending. Jumbo lenders write their own rules, which commonly means bigger down payments, higher credit expectations and months of cash reserves. Two workarounds: put down enough to bring the loan under the limit, or use a "piggyback" second mortgage to cover the gap. Price both, because a jumbo rate can occasionally beat a conforming rate for strong borrowers.
Get an insurance quote before you make an offer, not after. Insurify projects the national average homeowners premium at about $3,057 a year, but Florida's is on track to approach $8,500, and premiums in several states jumped more than 20% last year. Flood insurance is separate from a standard policy, and a new National Flood Insurance Program policy usually has a 30-day waiting period, so it can't be bought at the last minute. Put the real quote into "Home insurance" above; we've seen it move a payment by more than $400 a month on its own.
Ask lenders specifically about Fannie Mae HomeReady and Freddie Mac Home Possible. Both allow 3% down and offer reduced mortgage insurance for borrowers at or under 80% of their area's median income. Then look for down payment assistance from your state housing finance agency — many offer grants or forgivable second loans, sometimes paired with a homebuyer education course. A HUD-approved housing counselor can walk you through local programs at no cost or low cost. NAR's latest profile found first-time buyers were just 21% of purchases, with a record-high median age of 40, so you're far from the only one who needed help getting in.
Ask whether the loan is assumable. Government-backed loans generally are, which means a qualified buyer can take over the seller's existing rate and remaining balance instead of borrowing at today's price. If the seller locked in during 2020 or 2021, that can be worth hundreds of dollars a month. You still have to qualify with the loan's servicer, and the process often takes longer than a new loan. The bigger hurdle is the gap: if the home sells for $400,000 and the seller owes $250,000, you need the $150,000 difference in cash or through a second loan, which will carry a current, higher rate. Run both pieces through the calculator — the blended payment is what matters. VA sellers should know their entitlement stays tied to the loan unless the buyer is a veteran who substitutes their own.
Gifts are allowed on most loan types, but lenders want a paper trail. Expect to provide a signed gift letter stating the money doesn't have to be repaid, plus records showing it leaving the giver's account and landing in yours. Cash handed over in an envelope is the one gift that causes trouble, because it can't be sourced. Any large deposit you can't explain will be questioned, so move the money early and keep the statements. If the "gift" is really a loan you'll repay, say so — undisclosed debt is a serious problem on a mortgage application, and the payment has to count against your debt-to-income ratio.
Sellers in a slow market accept sale-contingent offers more often than in a hot one, so ask before assuming you can't. Other routes: a bridge loan secured by your current home, a home equity line of credit opened before you list, or a lender that will qualify you while you carry both payments for a few months. Each one costs something, and carrying two mortgages is where buyers get hurt if the old house sits. Before you commit, enter both payments into a simple budget and ask yourself how many months you could cover them with savings alone.
This is the call we hear about most from people who already own. Your servicer reviews the escrow account every year, and when property taxes or insurance go up, the monthly payment rises to match — and if the account came up short, you may see a separate shortage charge. Federal rules limit the cushion a servicer can hold to one-sixth of the year's escrow bills, and a larger shortage can usually be spread over 12 months. Ask for the escrow analysis, check that the tax and insurance amounts are right, and shop your homeowners policy: switching insurers or raising your deductible is often the quickest way to pull the payment back down.
Costs the Monthly Payment Doesn't Show
The calculator covers your recurring payment. These are the costs that ambush budgets in the first year.
- Closing costsLender fees, appraisal, title insurance, recording and transfer taxes. Usually quoted as 2%–5% of the price; in LodeStar's state-by-state averages, Delaware tops the list relative to price at about 3.06%, and Washington, D.C., is the most expensive in dollars.2%–5%
- Prepaids and escrow cushionYour first year of insurance, a few months of property tax, and interest from closing day to month-end, collected up front.Due at closing
- Tax reassessmentMany counties reassess at your purchase price. The seller's old tax bill is not your tax bill — use the county's rate times your price.Can jump
- Escrow shortageIf taxes or insurance rise, your servicer raises the payment and may bill the shortfall. Check your annual escrow statement.Yearly risk
- MaintenanceRoofs, water heaters and HVAC systems don't care about your rate. Many planners budget around 1% of the home's value a year, more for older homes.~1%/yr
- HOA special assessmentsAsk the association for its reserve study and any planned assessments before you sign.Ask first
Property taxes vary more than almost anything else in the calculator. Effective rates on owner-occupied homes range from under 0.3% in Hawaii to more than 2% in New Jersey and Illinois, according to the Tax Foundation's analysis of Census data. The default 1% above is only a placeholder — your county assessor's website lists the actual rate, and the listing usually shows the current tax bill.
Refinance Break-Even Calculator
If rates fall after you buy, refinancing pays off only when monthly savings outrun the closing costs. Enter your current loan to see the break-even month.
Two details that trip people up. Restarting a 30-year clock lowers your payment partly by stretching the debt, so the "lifetime interest" figure can rise even when the monthly saving looks great; choose a new term close to your remaining years to compare fairly. And if you have an FHA loan, an FHA Streamline refinance within three years of closing can refund part of your original upfront premium. VA borrowers have their own streamlined option, the IRRRL, with a funding fee of 0.5%.
Paying Off Your Mortgage Early
On the sample loan, adding $200 a month to principal would retire it about 6 years and 2 months sooner and save roughly $136,867 in interest at today's average rate.
Extra principal works because interest is charged on the remaining balance each month; every dollar you prepay stops collecting interest for the rest of the loan. Type an amount into "Extra principal" above and the balance chart draws both paths. A few practical points we learned the hard way:
- Label it. Tell your servicer the extra goes to principal, and check the next statement. Otherwise some servicers hold it as an early payment.
- Biweekly plans are just arithmetic. Paying half the payment every two weeks produces 26 half-payments, or 13 full payments a year. You can get the same effect free by adding one-twelfth of a payment each month — skip any company that charges a setup fee for it.
- Recasting lowers the payment instead. If you come into a lump sum, many servicers will re-amortize the loan for a modest fee, keeping your rate and term but cutting the monthly bill. That's useful for retirees who value cash flow over speed.
- Know when not to prepay. High-interest credit card debt, an empty emergency fund or a missed employer retirement match all deserve the money first. A 3% mortgage rarely beats a high-yield savings account; a 7% one often does.
Mortgage Tax Breaks After the New Tax Law
The tax law signed in July 2025 settled several questions that had been hanging over homeowners.
- Mortgage interestDeductible on up to $750,000 of acquisition debt ($375,000 married filing separately). The limit, once temporary, is now permanent.Permanent
- Mortgage insurancePMI, FHA, VA and USDA premiums count as deductible mortgage interest again for tax years after 2025. The deduction shrinks above $100,000 of AGI and disappears above $109,000 ($50,000/$54,500 married filing separately). Those thresholds aren't adjusted for inflation.Back for 2026
- State and local taxes (SALT)Property tax plus state income or sales tax is deductible up to $40,400 for 2026, with the cap shrinking for incomes above roughly $505,000. It reverts to $10,000 in 2030.$40,400 cap
- Standard deduction$32,200 for married couples filing jointly, $16,100 for single filers and $24,150 for heads of household this year. You only gain from mortgage deductions if your itemized total beats this.The real hurdle
Here's what that means in practice. In the first year of the sample loan, interest comes to about $27,700. A married couple who also pays $5,000 in property tax and $8,000 in state income tax would itemize about $40,700, which beats the $32,200 standard deduction by about $8,500 — so the mortgage lowers their taxable income by that margin, not by the full interest bill. Single buyers clear the bar much more easily. A tax preparer can run your exact figures; the point is not to count the whole interest bill as a tax break when you budget.
How to Shop Lenders Without Getting Played
Rate shopping is the highest-paid hour you'll spend in the whole home purchase. Federal disclosure rules make it easier than most buyers realize.
- Get three Loan Estimates the same day. Lenders must send this standardized three-page form within three business days of your application. Because it's identical across lenders, you can line them up side by side. Request them on the same day so rate movements don't distort the comparison.
- Compare Section A and the APR. Section A on page 2 holds the lender's own charges, including points. The APR folds most fees into a single rate. A lower rate with a higher APR usually means you're paying for it up front.
- Don't fear the credit checks. Credit-scoring models treat multiple mortgage inquiries in a short window as one — 45 days with newer FICO versions, 14 days with older ones — so shopping costs you little or nothing.
- Lock when the numbers work. A rate lock freezes your rate for a set period, often 30 to 60 days. Ask what an extension costs and whether a "float-down" is offered if rates fall.
- Read the Closing Disclosure. You must receive it at least three business days before closing. Compare it with your final Loan Estimate; certain fees can't legally rise at all.
- Never wire money on email instructions alone. Wire-fraud rings spoof title companies at closing. Call your title or escrow office at a number you looked up independently before sending a dollar.
We priced the sample loan at a rate a quarter-point apart — the kind of gap that routinely shows up between lenders on the same day. That quarter point is worth about $64 a month and several thousand dollars over a decade, for a few hours of comparison. No other step in buying a home pays that well per hour.
Free, Unbiased Help
These are government or nonprofit lines that don't sell loans.
The Consumer Financial Protection Bureau takes complaints about lenders and servicers and can connect you with a housing counselor. The HOPE Hotline links you with HUD-approved counselors around the clock — helpful before you buy, and essential if you ever fall behind. Veterans can reach VA's loan specialists directly, and FHA's Resource Center answers questions about FHA rules and loan limits.
If you're already a homeowner and struggling with payments, call your servicer before you miss one. Forbearance, repayment plans and loan modifications are far easier to arrange early, and a counselor can help you prepare the paperwork.
Average rates come from Freddie Mac's weekly Primary Mortgage Market Survey, retrieved automatically from the Federal Reserve Bank of St. Louis (FRED) or Freddie Mac and refreshed several times a day (Freddie Mac PMMS via FRED). PMI estimates use typical market ranges by credit score and down payment; your insurer's quote decides your actual cost. FHA, VA and USDA fees follow current HUD, VA and USDA schedules. Results are estimates for planning, not a loan offer, and not tax or legal advice. Independent and not affiliated with Freddie Mac, Fannie Mae, HUD, VA or USDA.
Key sources: Freddie Mac · FHFA · HUD · U.S. Department of Veterans Affairs · USDA Rural Development · Consumer Financial Protection Bureau · IRS · National Association of Realtors