Mortgage Payment Calculator
What is a Mortgage Payment?
A mortgage payment is the monthly amount you pay to your lender to repay your home loan. It typically consists of four main components: principal, interest, taxes, and insurance (PITI). The principal is the amount you borrowed, while interest is the cost of borrowing. Property taxes and homeowner’s insurance are often included in your monthly payment through an escrow account. Additional costs may include Private Mortgage Insurance (PMI) if your down payment is less than 20%, and Homeowners Association (HOA) fees if applicable.
How to Use the Zillow Mortgage Payment Calculator
Step 1
Enter the total home price in the first field. This should be the full purchase price of the property you’re interested in.
Step 2
Input your planned down payment amount. Remember that a larger down payment will reduce your monthly payments and might help you avoid PMI.
Step 3
Select your desired loan term, typically 15 or 30 years. A longer term means lower monthly payments but more interest paid over time.
Step 4
Enter the current interest rate. This rate should be based on your research of current market rates and your credit score.
Step 5
Input your estimated annual property tax amount. If unknown, you can typically estimate this at 1-1.5% of the home’s value.
Step 6
Enter your estimated annual home insurance premium. This usually ranges from $300 to $1,000 per $100,000 of home value.
Step 7
Add any monthly HOA fees if applicable to your property. Leave this at zero if there are no HOA fees.
Step 8
Review your results, which will show your total monthly payment broken down into principal and interest, property taxes, insurance, and HOA fees. The calculator uses the standard amortization formula: PMT = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal, r is the monthly interest rate, and n is the total number of payments.