$500,000 Mortgage Calculator
Calculate your monthly payments and total cost for a 30-year mortgage at 5% interest rate
Payment Summary
Note: This calculation is for principal and interest only. Your actual payment may be higher when including property taxes, homeowners insurance, and other fees.
Payment Breakdown
As shown in the chart, over the life of the loan, you'll pay nearly as much in interest as the original home price. This demonstrates why even a small reduction in interest rate can save you thousands of dollars.
Amortization Overview
| Year | Beginning Balance | Total Interest Paid | Total Principal Paid | Remaining Balance |
|---|---|---|---|---|
| 1 | $500,000 | $24,804 | $3,301 | $496,699 |
| 5 | $470,466 | $22,923 | $5,821 | $464,645 |
| 10 | $429,062 | $20,399 | $9,519 | $419,543 |
| 15 | $372,434 | $17,391 | $14,710 | $357,724 |
| 20 | $286,500 | $14,405 | $20,513 | $265,987 |
| 25 | $175,864 | $10,945 | $28,484 | $147,380 |
| 30 | $38,445 | $1,473 | $38,445 | $0 |
This table shows how your payments are applied over time. In the early years, most of your payment goes toward interest rather than principal. As the loan matures, this balance shifts.
Key Factors
If you make a down payment of less than 20%, you may need to pay for Private Mortgage Insurance (PMI), which protects the lender and adds to your monthly cost.
Mortgage interest is typically compounded monthly, meaning interest is calculated each month on the remaining principal plus any accrued interest.
Remember to budget for property taxes, homeowners insurance, HOA fees, and maintenance costs, which are not included in the mortgage payment.
Money Saving Tips
Make Extra Payments
Even small additional payments toward principal can significantly reduce the total interest paid and shorten the loan term.
Consider a Shorter Term
A 15-year mortgage would have higher monthly payments but save you thousands in interest over the life of the loan.
Refinance if Rates Drop
If interest rates decrease, refinancing your mortgage could lower your monthly payments and total interest cost.
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