Mortgage Payments & Payoff Simulator
Simulate standard monthly housing costs or model advanced principal payoff accelerations to visualize compound interest savings over your amortization schedule.
$2,723/mo
Based on 30-year fixed rate of 6.5%
Understanding Your Mortgage Calculations
How is my monthly payment calculated?
Your monthly payment consists of Principal & Interest (P&I) which pays down the base loan amount, plus additional escrows. These escrows include Property Taxes, Homeowners Insurance, and any HOA fees which go directly to their respective bodies.
Why do extra payments make such a large impact?
Normally, a large portion of your early mortgage payments goes entirely toward interest. By adding an extra payment, 100% of that extra amount goes directly to pay down your loan principal. This shrinks your remaining balance faster, preventing interest from compounding and saving you huge sums over the life of the loan.
What is the Rent vs. Buy crossover?
Buying a home builds long-term equity, but comes with upfront closing costs, maintenance fees, and interest. Renting has lower initial costs but offers no equity. The crossover point is the year where the accumulated financial benefits of owning (appreciation, equity build) surpass the costs of renting.
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