1. What is a Mortgage Calculator?

Definition: This calculator estimates your monthly mortgage payment based on loan amount, interest rate, and loan term.

Purpose: It helps homebuyers and homeowners understand their potential mortgage payments and plan their budgets accordingly.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Monthly mortgage payment (USD)
• \( P \) — Loan principal amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of payments (loan term in years × 12)

Explanation: The formula calculates the fixed monthly payment required to fully amortize the loan over its term.

3. Importance of Mortgage Calculation

Details: Understanding your mortgage payment helps with budgeting, comparing loan options, and determining how much house you can afford.

4. Using the Calculator

Tips: Enter the loan amount, current interest rate (check Chase rates), and loan term (typically 15 or 30 years). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Does this include taxes and insurance?
A: No, this calculates principal and interest only. Your actual payment may include escrow for taxes and insurance.

Q2: How often do Chase mortgage rates change?
A: Rates can change daily based on market conditions. Check Chase's current rates for the most accurate information.

Q3: What's the difference between 15-year and 30-year mortgages?
A: 15-year loans have higher payments but lower interest rates and total interest paid. 30-year loans have lower payments but higher total costs.

Q4: How does a larger down payment affect my payment?
A: A larger down payment reduces your principal (P), resulting in a lower monthly payment.

Q5: What are today's average mortgage rates?
A: As of July 2025, average rates are around X% for 30-year fixed and Y% for 15-year fixed (check Chase for current rates).