What is a good mortgage interest rate in 2024?

In 2024, a 30-year fixed mortgage rate between 6.5%–7.5% is considered average. Rates below 6.5% are considered good. Your rate depends on your credit score, down payment, loan type, and lender. Borrowers with 760+ credit scores typically get the best rates.

How much house can I afford on a $100,000 salary?

Using the 28/36 rule, your monthly mortgage payment should not exceed 28% of gross monthly income. On $100k/year ($8,333/month), that's ~$2,333/month. At 7% interest with 20% down, this corresponds to a home price of roughly $300,000–$350,000.

What is the difference between a 15-year and 30-year mortgage?

A 15-year mortgage has higher monthly payments but you pay significantly less total interest (often 50–60% less). A 30-year mortgage has lower monthly payments but costs much more over time. For example, on a $300,000 loan at 7%, a 30-year costs ~$418k in interest vs ~$185k for a 15-year.

How much is a down payment on a house?

The standard down payment is 20% to avoid PMI (Private Mortgage Insurance). However, FHA loans allow as little as 3.5% down, and some conventional loans allow 3–5%. On a $400,000 home, 20% down = $80,000. A smaller down payment means higher monthly payments and added PMI costs.

What does PITI mean in a mortgage?

PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a full monthly mortgage payment. Principal reduces your loan balance, interest is the lender's fee, taxes are property taxes (escrowed monthly), and insurance includes homeowner's insurance and PMI if applicable.

Should I pay points to lower my mortgage rate?

One mortgage point costs 1% of the loan amount and typically reduces your rate by 0.25%. It's worth it if you plan to stay in the home long enough to recoup the upfront cost. Divide the point cost by your monthly savings to find the break-even period — usually 4–7 years.

Mortgage Guide

Mortgage Calculator: Monthly Payment, Total Interest & Amortization

A mortgage calculator helps you estimate your monthly payment, total interest paid, and how much house you can afford. Understanding your mortgage before you buy can save you tens of thousands of dollars. This guide explains the mortgage formula, compares loan terms, and answers the most common questions.

Mortgage Payment Estimator

Home Price ($)

Down Payment (%)

Interest Rate (%)

Loan Term

Monthly Payment

$2,129

Total Interest

$446,428

Total Cost

$766,428

Loan amount: $320,000

Down payment: $80,000

Full Mortgage Calculator with Taxes & Insurance

The Mortgage Payment Formula

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

MMonthly payment

PPrincipal loan amount (home price − down payment)

rMonthly interest rate (annual rate ÷ 12)

nTotal number of payments (years × 12)

Example: $320,000 loan at 7% for 30 years → r = 0.07/12 = 0.005833, n = 360. Monthly payment = $2,129. Total interest paid = $446,440.

15-Year vs 30-Year Mortgage — Which Is Better?

Term	Rate (est.)	Monthly ($300k)	Total Interest	Best For
10-year	6.25%	$3,368	$104,208	Fastest payoff
15-year	6.5%	$2,613	$170,398	Best balance
20-year	6.75%	$2,281	$247,462	Middle ground
30-year	7%	$1,996	$418,527	Lowest payment

Based on $300,000 loan. Rates are illustrative estimates for 2024.

How Much House Can You Afford?

28% Rule

Your monthly mortgage payment (PITI) should not exceed 28% of your gross monthly income.

$80k salary → max $1,867/month

36% Rule

Total debt payments (mortgage + car + student loans) should not exceed 36% of gross monthly income.

$80k salary → max $2,400/month total debt

3× Income Rule

A simple rule: buy a home worth no more than 3× your annual gross income.

$100k salary → max $300k home

20% Down Rule

Put down at least 20% to avoid PMI, get a better rate, and start with equity.

$400k home → $80k down payment

Hidden Costs of a Mortgage

Property Taxes

$167–$833/mo

Typically 0.5%–2.5% of home value per year, escrowed monthly. On a $400k home, that's $2,000–$10,000/year.

Homeowner's Insurance

$100–$167/mo

Required by lenders. Average $1,200–$2,000/year depending on location and coverage.

PMI (Private Mortgage Insurance)

$125–$375/mo

Required if down payment < 20%. Costs 0.5%–1.5% of loan amount annually. Removed once you reach 20% equity.

Maintenance & Repairs

$333–$667/mo

Budget 1%–2% of home value per year for maintenance. Often overlooked by first-time buyers.

HOA Fees

$100–$700/mo

If applicable, HOA fees range from $100–$700+/month depending on community amenities.

Frequently Asked Questions

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30-Year vs 15-Year

On a $300k loan, a 15-year mortgage saves you over $260,000 in interest compared to a 30-year.

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