Finance calculators

Bank of America Mortgage Calculator

Updated Sep 1, 2026 By Jehan Wadia
Rate Formulas
Loan Details
Purchase price & down payment
The agreed or expected sale price of the home.
These two fields stay in sync. A down payment under 20% automatically adds private mortgage insurance (PMI) to your payment.
Purchase price − down payment. This field is not editable.
Term, location & rate
30-Year Fixed: your rate and principal & interest payment stay the same for all 360 payments.
Enter exactly 5 digits. Local estimates also pre-fill property tax and insurance defaults.
Pre-filled with the estimated rate for your ZIP code and loan type. Edit it to model a different scenario.
Taxes, Insurance & Fees
Percentage of purchase price per year and its monthly equivalent — the two stay in sync.
Pre-filled from a regional estimate. Edit either field and the other updates.
Common for condos, townhomes and planned communities. Included in the monthly total and lifetime cost.
Household Income (Optional)
Used only to estimate your housing debt-to-income ratio. Leave blank to skip — all other results still calculate.
Total Estimated Monthly Payment
$0.00
Principal & interest, taxes, insurance, PMI and HOA

Monthly Payment Breakdown

Principal & InterestRate 6.610% on $240,000 for 360 payments $0.00
Property Taxes0.780% of purchase price per year $0.00
Homeowners Insurance$1,450 per year $0.00
PMI (Private Mortgage Insurance)Not required — down payment is 20% or more $0.00
HOA DuesNo HOA dues entered $0.00
Total Estimated Monthly Payment $0.00

Loan-to-Value (LTV)

Loan-to-Value: 80.00%at or below the 80% conventional threshold, so no PMI is required.

0% 80% PMI threshold100%

Housing Debt-to-Income (DTI)

Estimated housing DTI: 0%  Within guidelines

0%28% guideline36% limit50%
Based on your income, this payment represents approximately 0% of your gross monthly income.

More Details

Step-by-Step Solution

Lifetime Cost Composition
    Balance, Principal & Interest Over Time
    Equity milestone: cumulative principal exceeds cumulative interest.
    Amortization Schedule & Lifetime Totals
    Total Principal Paid
    $0
    Total Interest Paid
    $0
    Total Taxes Paid
    $0
    Total Insurance Paid
    $0
    Total PMI Paid
    $0
    Total HOA Paid
    $0
    Total Taxes + Insurance + PMI + HOA
    $0
    Total of All Payments
    $0
    View:
    Amortization schedule by year. Showing the first 5 years.
    Year Principal Paid Interest Paid Taxes / Insurance / PMI / HOA Remaining Loan Balance

    Introduction

    This mortgage calculator shows what a home loan may cost you each month. Type in the home price, your down payment, the loan term, and your ZIP code. The tool then gives you a full monthly payment estimate.

    Your payment is more than just the loan. It also includes property taxes, homeowners insurance, PMI (if your down payment is under 20%), and HOA dues. This calculator adds all of them up, so you see the real number.

    You also get:

    • Your loan-to-value (LTV) ratio and whether PMI applies
    • A housing debt-to-income (DTI) estimate if you add your income
    • Total interest, taxes, and insurance paid over the life of the loan
    • A full year-by-year or month-by-month payment schedule
    • Step-by-step math so you can see how each number was found

    Change any number and the results update right away. Use it to compare a 15-year loan to a 30-year loan, test a bigger down payment, or see how a small rate change moves your payment. It helps you plan before you talk to a lender.

    How to use our Mortgage Calculator

    Enter the home price, your down payment, the loan term, your ZIP code, and your tax and insurance costs. The calculator shows your total monthly mortgage payment, a full breakdown of principal, interest, taxes, insurance, PMI and HOA, your LTV and DTI ratios, lifetime costs, and a year‑by‑year amortization schedule.

    Home Purchase Price: Type the price of the home you want to buy. This is the base for your loan, taxes and closing cost estimates.

    Down Payment (amount): Type the cash you plan to pay up front in dollars. The percent field updates on its own.

    Down Payment (percent): Or type your down payment as a percent of the price. Under 20% adds PMI to your monthly payment.

    Loan Amount: You do not fill this in. It is the home price minus your down payment.

    Loan Term & Type: Pick a fixed loan (10, 15, 20 or 30 years) or an ARM (5/6, 7/6 or 10/6). Fixed loans keep the same rate. ARMs can change after the fixed years end.

    Property ZIP Code: Enter the 5‑digit ZIP code of the home. This sets your estimated local mortgage rate, property tax rate and insurance cost.

    Interest Rate: We fill this in for you. Change it if you want to test a different rate. Click "Reset to estimated rate" to go back.

    Annual Property Tax Rate: Enter your yearly tax rate as a percent of the home price. The monthly amount updates on its own.

    Property Tax (monthly): Or enter your monthly tax bill in dollars if you already know it.

    Homeowners Insurance (annual): Enter what you pay for home insurance each year.

    Homeowners Insurance (monthly): Or enter the monthly amount. Both fields stay in sync.

    HOA Dues (monthly): Enter your monthly HOA fee. Use 0 if the home has no HOA.

    Annual Gross Household Income: Optional. Enter your pre‑tax yearly income for everyone on the loan to see your housing debt‑to‑income ratio. Leave it blank to skip it.

    Click Calculate to see your results, or Reset to start over with the sample numbers.

    What a Mortgage Payment Is Made Of

    A mortgage is a loan you use to buy a home. You pay it back in monthly payments over many years. Most people think a mortgage payment is just the loan, but it is really five smaller costs added together.

    • Principal: the part that pays down what you borrowed.
    • Interest: what the lender charges you to borrow the money.
    • Property taxes: what your city or county charges each year for owning the home.
    • Homeowners insurance: protects your home from fire, storms, and other damage.
    • PMI and HOA dues: extra costs that only some buyers pay.

    People often call the first four costs PITI. Together they make your total monthly housing cost.

    Down Payment and Loan Amount

    Your down payment is the cash you pay up front. The rest is your loan. If a home costs $300,000 and you put down $60,000, your loan is $240,000. A bigger down payment means a smaller loan, a smaller monthly payment, and less interest over time.

    Loan-to-Value (LTV) and PMI

    Loan-to-value compares your loan to the home price. A $240,000 loan on a $300,000 home is 80% LTV. If your LTV is over 80% (a down payment under 20%), lenders usually add private mortgage insurance, or PMI. PMI protects the lender, not you. It costs about 0.30% to 1.10% of your loan each year. PMI usually stops once your balance drops to 78% of the home price.

    Fixed Rate vs. Adjustable Rate (ARM)

    A fixed-rate loan keeps the same interest rate and the same principal and interest payment for the whole term. A 30-year fixed loan has 360 payments. Shorter terms like 15 years cost more each month but save a lot of interest.

    An ARM starts with a lower fixed rate for a set number of years. A 5/6 ARM is fixed for 5 years, then the rate can change every 6 months. Your payment can go up or down after that. ARMs have caps that limit how high the rate can go.

    Debt-to-Income (DTI)

    Lenders look at how much of your income goes to housing. A common rule is to keep your housing payment at or under 28% of your gross monthly income. Many lenders stop at about 36% for housing plus other debts. Lower is safer and easier to get approved.

    How Amortization Works

    Amortization is the schedule that splits each payment between interest and principal. In the early years, most of your money goes to interest. Over time, more goes to principal. At some point, the total principal you have paid passes the total interest. That is when you start building equity faster. Adding extra to each payment speeds this up.

    Other Costs to Plan For

    Closing costs usually run 2% to 5% of the home price and are due when you buy. Your APR is a bit higher than your interest rate because it includes lender fees. Taxes, insurance, and HOA dues also tend to rise over the years, so your real payment may grow even with a fixed rate.


    Formulas used

    Loan Amount
    L = P_{\text{price}} - D
    Monthly Principal & Interest Payment
    M = L \cdot \frac{i(1+i)^{n}}{(1+i)^{n}-1}, \quad i = \frac{r}{12}, \quad n = 12 \times \text{years}
    Loan-to-Value Ratio
    LTV = \frac{L}{P_{\text{price}}} \times 100\%
    Monthly PMI (applies while LTV > 80\%)
    PMI_{\text{mo}} = \frac{L \times p_{\text{PMI}}}{12}, \quad p_{\text{PMI}} = \begin{cases} 0.30\% & 80\% < LTV \le 85\% \\ 0.42\% & 85\% < LTV \le 90\% \\ 0.62\% & 90\% < LTV \le 95\% \\ 0.90\% & 95\% < LTV \le 97\% \\ 1.10\% & LTV > 97\% \end{cases}
    Total Monthly Payment
    T = M + \frac{P_{\text{price}} \times t}{12} + \frac{I_{\text{yr}}}{12} + PMI_{\text{mo}} + HOA
    Monthly Amortization Recursion
    \text{Int}_k = B_{k-1} \cdot \frac{r_k}{12}, \quad \text{Prin}_k = M_k - \text{Int}_k, \quad B_k = B_{k-1} - \text{Prin}_k
    Housing Debt-to-Income Ratio
    DTI = \frac{T}{\text{Annual Income} / 12} \times 100\%
    Estimated APR (solved for monthly rate, then annualized)
    L - F = \sum_{k=1}^{n} \frac{M_k}{(1+a)^{k}}, \quad APR = a \times 12 \times 100\%, \quad F = 0.01L + 1500

    Frequently asked questions

    Why does my interest rate change when I change the ZIP code?

    Mortgage rates are not the same everywhere. The calculator looks at your ZIP code and picks an estimated rate for that region and loan type.

    Your ZIP code also sets the default property tax rate and home insurance cost, since those change a lot by state.

    Why is the estimated APR higher than my interest rate?

    APR includes lender fees, not just interest. This calculator assumes fees of 1% of the loan plus $1,500.

    Because you pay those fees on top of interest, the true yearly cost of the loan is a bit higher than the rate alone.

    Why did PMI suddenly appear in my payment?

    PMI shows up when your down payment drops below 20% of the home price. That puts your LTV above 80%, and lenders add PMI to protect themselves.

    The rate the calculator uses goes up as your LTV goes up, from about 0.30% to 1.10% of the loan per year.

    Are closing costs part of my monthly payment?

    No. Closing costs are paid once, at the closing table. They are not spread over your monthly payments.

    The calculator shows an estimate of 2% to 5% of the home price under See more details so you can plan the cash you need.

    Where can I see the highest payment an ARM could reach?

    Click See more details. The line called Highest Projected Principal & Interest shows the top payment in the projection.

    Compare that number to your budget before you pick an ARM.

    Why is the total of all payments so much bigger than the home price?

    Because it adds up everything you pay over the whole loan: principal, interest, property taxes, insurance, PMI, and HOA dues.

    On a 30-year loan, interest alone can add up to more than half of what you borrowed.

    Can I see every single monthly payment?

    Yes. Switch the view to Month by month, then click Show full schedule.

    You will see the principal, interest, escrow costs, and remaining balance for each payment.

    Can I add extra payments to pay the loan off faster?

    Not in this tool. This calculator shows the normal schedule with no extra payments.

    To model extra payments, use the Mortgage Extra Payment Calculator or the Biweekly Mortgage Calculator.

    Why do I see a red box instead of results?

    Something needed is missing or out of range. Common causes are a blank home price, a down payment equal to or above the price, or a 0% interest rate.

    Look for the red message under each field, fix it, then the results come back on their own.