What this mortgage calculator does
Enter a home price, down payment, interest rate and term, and you instantly get the estimated monthly payment, the amount financed, the total paid over the life of the loan and how much of that is interest. It uses standard fixed-payment amortization — the math behind virtually every conventional mortgage — and runs entirely in your browser; nothing you type is stored or sent anywhere.
Keep in mind: the payment shown is principal and interest only — real payments usually add property taxes, homeowners insurance and sometimes HOA dues or mortgage insurance. Treat it as an informational estimate, not financial advice.
How to use it
- Home price: the purchase price of the property.
- Down payment (%): the percentage you pay upfront — the dollar equivalent appears below the field.
- Annual interest rate: the rate quoted by your lender.
- Term: pick 15, 20, 25 or 30 years, or type a custom term.
- Expand the year-by-year amortization to watch the balance shrink.
The math behind the payment
With a fixed-rate loan every monthly payment is identical. The formula is Payment = L × i ÷ (1 − (1 + i)^−n), where L is the loan amount (price minus down payment), i is the monthly rate as a decimal (annual rate divided by 12) and n is the number of monthly payments.
Worked example
You buy a $250,000 home with 20% down ($50,000), so you borrow $200,000 at 6.5% for 30 years.
- Monthly rate: 0.065 ÷ 12 ≈ 0.0054167; payments: n = 360
- Monthly payment ≈ $1,264.14
- Total paid: 1,264.14 × 360 ≈ $455,089
- Total interest ≈ $255,089 — more than the amount you borrowed.
How much should you put down?
A bigger down payment lowers your monthly bill and slashes lifetime interest. In the United States, putting at least 20% down typically lets you skip private mortgage insurance (PMI), an extra charge lenders require on loans above 80% of the home’s value. A widely used affordability guideline: keep the housing payment under 28-30% of gross monthly income. Before house hunting, get pre-qualified: the lender reviews your income and debts and estimates how much it would lend — not a final approval, but a realistic price range.
Here is how the term changes the same $200,000 loan at 6.5%:
| Term | Monthly payment | Total paid | Total interest |
|---|---|---|---|
| 15 years | $1,742.21 | ≈ $313,599 | ≈ $113,599 |
| 20 years | $1,491.15 | ≈ $357,875 | ≈ $157,875 |
| 25 years | $1,350.41 | ≈ $405,124 | ≈ $205,124 |
| 30 years | $1,264.14 | ≈ $455,089 | ≈ $255,089 |
In markets like the Dominican Republic, rates are usually fixed only for an initial period and then adjust, and first-time buyers may qualify for programs such as Bono Primera Vivienda — check current terms with local lenders.
Frequently asked questions
Should I choose a 15-year or a 30-year mortgage?
Using the example loan ($200,000 at 6.5%): the 15-year costs $1,742.21 a month with ≈ $113,599 in interest, while the 30-year costs $1,264.14 with ≈ $255,089 in interest — about $141,000 more. The 15-year builds equity much faster; the 30-year keeps the payment manageable — and you can still prepay.
What is an adjustable or variable rate?
A rate that resets periodically based on a market benchmark after an initial fixed period, so your payment can rise or fall. Fixed rates make budgeting predictable — ask how long the fixed period lasts and what index drives adjustments.
How much do extra principal payments save?
A lot. On the example loan, adding just $100 a month pays it off in about 293 months instead of 360 — roughly five and a half years early — and saves around $56,000 in interest.
What are closing costs?
One-time fees due at signing: lender charges, appraisal, title work and recording taxes. They add a few percent on top of the price, so ask for a written estimate and budget for them alongside the down payment.