Mortgage Calculator
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Calculate Your Monthly Mortgage Payment
Understanding your potential mortgage payment helps you budget confidently and shop for homes within your price range. This calculator estimates your complete monthly housing cost including principal, interest, taxes, insurance, and HOA fees. Here’s how to use it:
Enter your home price.
Input the price of the home you're considering. This calculator works for any property type in Los Angeles County, from condos to single-family homes.
Enter your down payment.
Most conventional loans require 5% to 20% down. FHA loans allow 3.5% down, and VA loans permit $0 down for qualified veterans. You can enter either a dollar amount or percentage.
Enter your interest rate.
Mortgage rates change daily based on market conditions. Our calculator uses current average rates, but you can adjust this based on quotes from lenders or your expected rate given your credit score and loan type.
Enter your loan term.
Choose the length of your mortgage. Most buyers select 30-year loans for lower monthly payments, though 15-year and 20-year options exist with higher payments but significantly less total interest paid.
Enter your ZIP code.
This helps estimate property taxes and homeowners insurance more accurately, since these costs vary across Los Angeles County neighborhoods.
Add optional details.
Property taxes, homeowners insurance, HOA fees, and PMI (if putting down less than 20%) all affect your total monthly payment. The calculator includes default estimates based on your home price and location, but you can customize these amounts.
The calculator shows your full housing cost so you can budget accurately and avoid surprises after closing.
Understanding the Components of Your Monthly Payment
Your mortgage payment includes several components that make up your total monthly housing cost. Lenders call this PITI (Principal, Interest, Taxes, Insurance), though additional costs may apply. Here’s what you’re paying for:
Principal
The amount you borrowed to purchase your home. Each month, part of your payment reduces this balance, building equity in your property. In the early years, most of your payment goes toward interest. Later, more goes toward principal.
Interest
The cost of borrowing money from your lender, calculated as an annual percentage rate (APR) and divided into monthly payments. Your interest rate depends on credit score, loan type, down payment size, and current market conditions. Even small rate differences significantly impact your monthly payment and total interest paid over the loan’s life.
Property Taxes
The annual tax on your home levied by Los Angeles County and your city. LA County charges approximately 1% of your home’s assessed value annually, though some areas include Mello-Roos taxes or special assessments adding 0.5% to 1% more. Your lender collects monthly portions and pays the bill when due.
Homeowners Insurance
Required coverage protecting your home from fire, theft, weather damage, and liability claims. Annual premiums in Los Angeles typically range from $1,200 to $2,500 depending on location, home value, coverage level, and whether you’re in a fire zone. You pay monthly portions through your mortgage payment.
Private Mortgage Insurance (PMI)
If you put down less than 20% on a conventional loan, you’ll pay PMI ranging from 0.5% to 1% of your loan amount annually. This insurance protects the lender if you default. Once you reach 20% equity through payments and appreciation, you can request PMI removal. FHA loans require mortgage insurance for the life of the loan with less than 10% down. VA loans never require mortgage insurance.
HOA Fees
If you’re buying a condo, townhome, or home in a planned community, monthly homeowners association fees cover shared amenities, exterior maintenance, insurance, and reserves. HOA fees range from $200 to $800+ monthly and count toward your debt-to-income ratio, affecting how much home you can afford.
Additional Costs Beyond Your Mortgage:
Down Payment
Your upfront payment toward the home’s purchase price, typically 3.5% to 20% of the home price. Larger down payments mean smaller loans, lower monthly payments, and potentially no mortgage insurance.
Closing Costs
One-time fees including lender origination charges, appraisal fees, title insurance, escrow fees, and recording charges. Closing costs typically run 2% to 5% of your loan amount. Some costs are negotiable, and sellers may contribute toward your closing costs in certain situations.
How Mortgage Payments Are Calculated
Understanding the math behind your mortgage payment helps you see how loan amount, interest rate, and term length affect your monthly cost. Here’s the formula lenders use:
Let's say you're buying a $700,000 home in Los Angeles with a 10% down payment ($70,000). Your loan amount is $630,000 at a 6.5% interest rate over 30 years.
- P = $630,000 (home price minus down payment)
- r = 0.00542 (6.5% ÷ 100 = 0.065, then 0.065 ÷ 12 = 0.00542)
- n = 360 (30 years × 12 months)
Your monthly principal and interest payment would be approximately $3,983. Add property taxes ($583), homeowners insurance ($167), and PMI ($315 since you put down less than 20%) for a total monthly payment around $5,048.
Choosing the Right Loan Term
The length of your mortgage affects your monthly payment, total interest paid, and how quickly you build equity. Here’s how 30-year and 15-year terms compare on a $600,000 loan:
30-Year Fixed Mortgage at 6.5%
- Monthly payment: $3,792
- Total interest paid: $765,120
- Total paid over life of loan: $1,365,120
- Lower monthly payment provides budget flexibility
- Slower equity building in early years
15-Year Fixed Mortgage at 6.0%
- Monthly payment: $5,066
- Total interest paid: $311,880
- Total paid over life of loan: $911,880
- Saves $453,240 in interest compared to 30-year
- Builds equity much faster
- Mortgage-free in half the time
Which Term Is Right for You?
Choose a 30-year mortgage if
- You want lower monthly payments and more cash flow flexibility
- You’re stretching to afford your home purchase
- You plan to invest the payment difference in retirement accounts or other investments
- You value the option to make extra payments when possible without obligation
- You’re early in your career with income growth expected
Choose a 15-year mortgage if
- You can comfortably afford the higher monthly payment
- You want to build equity quickly and own your home free and clear sooner
- You’re in peak earning years and prioritize debt elimination
- You’re buying a smaller home or making a large down payment
- Saving hundreds of thousands in interest matters more than monthly flexibility
The Hybrid Approach: Take a 30-year mortgage for payment flexibility but make extra principal payments when possible. This gives you the security of a lower required payment with the option to pay down your loan faster when your budget allows.
Many LA buyers choose 30-year terms given high home prices, then refinance to 15-year loans later once income increases or they’ve built substantial equity.
Understanding the Impact of Mortgage Rates
Small differences in interest rates create significant changes in your monthly payment and total interest paid over the life of your loan. Here’s how rates affect affordability on a $600,000 loan over 30 years:
At 6.0% Interest
Monthly payment: $3,597
Total interest paid: $694,920
At 6.5% Interest
Monthly payment: $3,792
Total interest paid: $765,120
At 7.0% Interest
Monthly payment: $3,992
Total interest paid: $837,120
That 1% difference between 6% and 7% costs you an extra $395 per month and $142,200 over 30 years. This is why improving your credit score, shopping multiple lenders, and timing your purchase matter so much.
What Determines Your Interest Rate:
Credit Score
Higher scores (740+) qualify for the best rates. Scores below 680 face higher rates or more restrictive loan terms. Even 20 points can make a 0.25% difference in your rate.
Down Payment Size
Larger down payments reduce lender risk and often qualify for lower rates. Putting 20%+ down eliminates mortgage insurance and may reduce your rate by 0.125% to 0.25%.
Loan Type
Conventional, FHA, VA, and jumbo loans have different rate structures. VA loans typically offer the lowest rates, followed by conventional, then FHA. Jumbo loans (above $766,550 in LA County) often carry higher rates.
Loan Term
15-year mortgages have lower rates than 30-year loans but higher monthly payments. The shorter term means less risk for lenders and less total interest for you.
Market Conditions
Federal Reserve policy, inflation, economic growth, and housing market activity all influence mortgage rates. Rates change daily and sometimes multiple times per day.
Points and Fees
You can pay points (1% of loan amount per point) upfront to reduce your interest rate. Each point typically lowers your rate by 0.25%. This makes sense if you're keeping the loan long-term.
Even 0.25% rate differences matter on large LA home prices. Shop at least three lenders to compare rates, fees, and terms before choosing your mortgage.