Additional Costs
Total Monthly Payment
$3,185
Loan Amount
$360,000
Total Interest
$480,583
Payoff Year
2056
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,837 | $24,183 | $356,163 |
| 2 | $4,104 | $23,916 | $352,059 |
| 3 | $4,390 | $23,630 | $347,670 |
| 4 | $4,695 | $23,324 | $342,975 |
| 5 | $5,022 | $22,997 | $337,953 |
What is PMI and when do I pay it?
PMI stands for Private Mortgage Insurance. You pay it when your down payment is less than 20% of the home price. It protects the lender if you stop making payments. PMI usually costs between 0.3% and 1.5% of the loan each year. Once you have paid off enough to own 20% of the home, you can ask to remove PMI.
What is the difference between a fixed and adjustable rate?
A fixed-rate mortgage keeps the same interest rate for the whole loan. Your monthly payment stays the same, which makes budgeting easier. An adjustable-rate mortgage (ARM) starts with a lower rate, but it can go up or down after a set period. ARMs can save you money at first, but they carry more risk if rates rise later.
How does the loan term affect my payments?
A shorter term, like 15 years, means higher monthly payments but you pay much less interest overall. A 30-year term gives you lower monthly payments, but you end up paying more in total interest. For example, a $360,000 loan at 6.75% costs about $2,335/month over 30 years but $3,184/month over 15 years. The 15-year option saves over $200,000 in interest.
Note: This calculator gives estimates based on the inputs you provide. Actual payments may differ based on your lender, credit score, and local taxes. Talk to a mortgage professional for personalised advice.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Publication 936 — Home Mortgage Interest Deduction
- CFPB — Understand How Mortgage Payments Work
- IRS Publication 17 — Your Federal Income Tax
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.