How to Use This Mortgage Calculator

Enter the Home Price: Enter the estimated purchase price of the home you would like to buy.
Add Your Down Payment: Add your down payment amount or percentage to see how it impacts your loan amount and monthly payment.
Choose a Loan Term: Select your loan term, such as 15 or 30 years. Shorter terms typically have higher monthly payments but lower total interest costs.
Enter the Interest Rate: Enter the interest rate for your mortgage loan. Even small rate changes can significantly affect your monthly payment.
Include Taxes and Insurance: Include estimated property taxes and homeowners insurance for a more complete monthly payment estimate.
Account for PMI: If your down payment is less than 20%, private mortgage insurance (PMI) may be included in your estimate.
Add HOA Dues if Needed: Add monthly HOA dues, if applicable.
Review the Payment Breakdown: Review your estimated monthly payment breakdown, including principal, interest, taxes, and insurance.
Compare Different Scenarios: Adjust the numbers to compare different home prices, down payments, or loan terms and find a payment that fits your budget.
Use It as a Planning Tool: Use this calculator as a planning tool before speaking with a Paducah Bank mortgage lender about your financing options.

Helpful Mortgage Links

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Mortgage Definitions

Home Price

The purchase price of the home before your down payment is applied.

Down Payment

The amount you plan to pay upfront. A larger down payment may lower your monthly mortgage payment.

Loan Term

The length of time you’ll have to repay your mortgage, usually shown in years.

Interest Rate

The annual rate used to calculate the interest you’ll pay on your mortgage.

PMI

Private mortgage insurance may be required if your down payment is below a certain amount. It helps protect the lender.

Taxes & Insurance

An estimate of the property taxes and homeowners insurance that may be included in your monthly payment.

Property Tax

The tax charged by your local government based on the value of your home.

Home Insurance

Insurance that helps protect your home and property from covered damage or loss.

HOA Dues

Monthly or annual fees paid to a homeowners association, if the property is part of one.

What factors affect your mortgage payment?

Your monthly mortgage payment may be influenced by your loan amount, interest rate, down payment, loan term, property taxes, insurance, and possible PMI.

Use our Kentucky mortgage calculator to estimate your monthly payment, explore different loan scenarios, and better understand what may fit your budget before speaking with a mortgage lender.

Mortgage Calculator Formula

Want to see how a mortgage payment is calculated? Here’s the basic formula used to estimate the monthly principal and interest payment:

M = P × [ r(1 + r)ⁿ / ((1 + r)ⁿ − 1) ]

M = Monthly mortgage payment

This is the estimated monthly payment for principal and interest.

P = Principal loan amount

This is the amount you borrow after your down payment.

r = Monthly interest rate

Mortgage rates are usually shown as an annual rate. To calculate the monthly rate, divide the annual rate by 12.

For example, a 5% interest rate would be 0.05 ÷ 12 = 0.004167.

n = Number of payments

This is the total number of monthly payments over the life of the loan. Multiply the number of years by 12.

For example, a 30-year mortgage would have 360 payments.

This formula gives you an estimate of principal and interest only. Your actual monthly payment may also include property taxes, homeowners insurance, PMI, and HOA dues.

Disclosures
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.