Mortgage Calculator USA — Calculate Your Home Loan Payment
Free mortgage calculator for US home buyers. Calculate monthly payments for 15-year and 30-year fixed mortgages with property tax and insurance estimates.
Buying a home in the United States is a major milestone and understanding your monthly mortgage payment is the first step in the process. Most Americans choose between a 30-year fixed rate mortgage which offers lower monthly payments or a 15-year fixed rate which builds equity faster and saves significantly on total interest. Current mortgage rates in 2026 range from 5.5% to 7% depending on your credit score down payment and lender. Use our calculator to compare scenarios and find what fits your budget.
How much house can I afford on $80000 salary?
On an $80000 annual salary ($6667 monthly) following the 28% rule your maximum monthly housing payment should be about $1867. At a 6.5% interest rate with 20% down and 30-year term this translates to roughly a $350000-$380000 home depending on property taxes and insurance in your area.
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Mortgage Calculator
How This Calculator Works
This calculator uses the standard reducing balance method to compute your monthly payments. The formula takes your loan principal, annual interest rate, and tenure to calculate the exact Equated Monthly Installment (EMI) or payment amount. Each monthly payment consists of two components — principal repayment and interest charges. In the early months, a larger portion goes toward interest, but as your outstanding balance decreases, more of each payment reduces the principal. This is why making extra prepayments in the early years of your loan saves significantly more interest than prepaying later.
Tips to Get the Best Loan Deal
Always compare the Annual Percentage Rate (APR) rather than just the advertised interest rate, as APR includes processing fees, insurance charges, and other costs. Negotiate your processing fee — most banks will reduce or waive it if you ask. Choose the shortest tenure your budget allows since longer tenures dramatically increase total interest paid. Check prepayment terms before signing — RBI mandates zero prepayment penalty on floating rate home loans in India. Finally, maintain a credit score above 750 to qualify for the best rates from any lender.
Key Information
| Parameter | Details |
|---|---|
| Average 30-Year Fixed Rate | 6.5% (2026 estimate) |
| Average 15-Year Fixed Rate | 5.8% (2026 estimate) |
| Typical Down Payment | 3% - 20% of home price |
| Closing Costs | 2% - 5% of loan amount |
Calculate your mortgage payment
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
How much house can I afford on $80000 salary?
On an $80000 annual salary ($6667 monthly) following the 28% rule your maximum monthly housing payment should be about $1867. At a 6.5% interest rate with 20% down and 30-year term this translates to roughly a $350000-$380000 home depending on property taxes and insurance in your area.
Should I choose a 15 or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves you tens of thousands in interest. For a $300000 loan at 6% the 30-year total interest is $347515 while the 15-year total is only $155683 — a saving of nearly $192000. Choose 15-year if you can comfortably afford the higher payment without straining your budget.
How much should I put as a down payment?
A 20% down payment avoids Private Mortgage Insurance (PMI) which adds $100-$300 per month to your costs. However many first-time buyer programs accept 3-5% down. A larger down payment reduces your loan amount monthly payment and total interest paid. Save at least 20% if possible but do not delay buying if you have a stable income.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI typically costs 0.5-1% of the loan amount annually and is added to your monthly payment. You can request PMI removal once your equity reaches 20% of the original home value, or it automatically drops at 22% equity.
How does a 30-year vs 15-year mortgage affect payments?
A 15-year mortgage has higher monthly payments but dramatically lower total interest. For a $300,000 loan at 6.5%, the 30-year option costs $1,896/month with $382,633 total interest, while the 15-year costs $2,613/month with only $170,389 total interest — saving you over $212,000. Choose 15-year if you can afford the higher payment.
What credit score do I need for a mortgage?
Conventional loans typically require a minimum score of 620, FHA loans accept 580 (or 500 with 10% down). A score above 740 qualifies you for the best rates. Each 20-point increase in your score can save 0.25% on your rate, which translates to thousands of dollars over the life of the loan.
How much down payment do I need to buy a house?
Conventional loans require 3-20% down. FHA loans accept as low as 3.5%. VA loans offer 0% down for eligible veterans. Putting less than 20% down means paying PMI. A larger down payment reduces your monthly payment, total interest, and may qualify you for better rates.
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Last updated: March 2026