Mortgage Calculator

Calculate your home loan payments and view detailed amortization schedule

Mortgage Payment Calculator

Home Price

Total cost of the home

Down Payment

Upfront payment amount

Interest Rate

Live from Federal Reserve (Live RSS when available): 6.75% mortgage rate (updated 2025-07-26)

Loan Term

Years

Loan repayment period

Central Bank vs Mortgage Rates

Fed (Federal Reserve) rate: 4.33% - this is the US central bank's federal funds rate that sets the baseline for all American interest rates. However, mortgage rates are 6.7-6.8% (avg 6.75% - Freddie Mac July 2025). 30-year fixed mortgages include a 2.4%+ spread over the Fed rate to cover lender funding costs, credit risk, and profit over the long loan term.

Disclaimer: Mortgage rates vary significantly by lender, credit score, loan-to-value ratio, and market conditions. This calculator provides estimates only. Always compare offers from multiple lenders and consult with mortgage professionals.

Understanding Home Mortgages

A mortgage is a loan used to purchase real estate. The property serves as collateral for the loan. Understanding mortgage calculations helps you make informed decisions about home purchases.

Key Components:

Principal: The amount you borrow
Interest: The cost of borrowing money
Down Payment: Upfront payment reducing loan amount
Amortization: Gradual repayment over time

Mortgage Terms & Tips:

Standard Mortgage Terms

Typical Term: 15-30 years (30 years standard)

Down Payment: 3-20% (20% avoids PMI)

Rate Types: Fixed (15/30 year) or ARM

Current Rates: 6.5-7.5% (July 2025)

Qualification: Credit score 620+ typically

Programs: FHA, VA, USDA available

Higher down payment reduces monthly payments
Good credit score gets better interest rates
Compare offers from multiple lenders
Consider the total cost, not just monthly payment