How is a monthly mortgage payment calculated?

Monthly mortgage payments consist of Principal & Interest (P&I), Property Taxes, Homeowner's Insurance, and HOA fees. Principal & Interest is calculated using the loan amount, interest rate, and total loan term (e.g. 30 or 15 years).

What is a Debt-to-Income (DTI) ratio?

Debt-to-Income (DTI) measures the percentage of your gross monthly income that goes toward paying monthly debts. Lenders look at Front-End DTI (housing costs only, ideally under 28%) and Back-End DTI (all monthly debts combined, ideally under 36%).

When does it make sense to refinance a mortgage?

Refinancing makes sense if you can secure a lower interest rate, shorten your loan term, or convert an adjustable-rate mortgage to a fixed rate, and if your monthly interest savings outweigh the closing costs before you plan to move.

InstaHome - Free Mortgage & Financial Calculator

InstaHome

Mortgage Calculation Report — Page 1 of 2

Report Date:
https://instahome-b9d01.web.app

Mortgage Payment Parameters

Adjust variables below to calculate your estimated monthly house payment.

Home Purchase Price

Down Payment (%)

Down Payment

Interest Rate (%)

Loan Term (Years / Months)

Duration (Months):

Taxes, Insurance & Fees (Optional)

InstaHome

Payment Breakdown & Financial Summary — Page 2 of 2

Report Date:
https://instahome-b9d01.web.app

Estimated Payment

$2,528

per month total payment

$2,022

P & I

Principal & Interest $2,022

Property Taxes $400

Homeowner's Insurance $116

HOA Fees $0

Loan Amount $320,000

Total Interest Paid $408,187

Total Loan Cost $728,187

Amortization Schedule

Detailed yearly & monthly payment balance breakdown over the loan life.

Year	Principal Paid	Interest Paid	Total Paid	Remaining Balance

How Much House Can I Afford?

Determine your maximum home purchasing power based on debt-to-income limits.

Maximum Purchasing Power

$452,000

Estimated max home price

Max Monthly Housing Payment $2,475

Estimated Loan Amount $392,000

Front-End DTI (Housing Ratio) 28.0%

Back-End DTI (Total Debt Ratio) 36.0%

Mortgage Refinance Savings

See if refinancing your existing mortgage will save you money.

Monthly Refinance Savings

$294

saved every month

Break-Even Point 15 Months

5-Year Net Savings $13,140

Lifetime Interest Savings $101,340

Rent vs. Buy Comparison

Compare total cost & equity over a 10-year period.

Financial Recommendation

Buying is Better

Buying builds equity over 10 years