How a mortgage payment is calculated
M = P · r(1+r)ⁿ / ((1+r)ⁿ − 1)
Where P is the loan amount, r is the monthly interest rate, and n is the number of payments. Early payments are mostly interest; later ones pay down more principal.
Regional versions
For local rates and rules, use one of the localised versions:
Frequently asked questions
How much house can I afford?
A common guideline is total housing costs under 28–30% of gross monthly income, but the right figure depends on your other debts.
Does a bigger down payment lower my payment?
Yes — it reduces the loan amount, lowering both the monthly payment and total interest.
Should I choose a shorter or longer term?
Shorter means higher monthly payments but far less total interest. Longer eases cash flow but costs more overall.
Estimates only, not financial advice.