2026 US Mortgage Calculator Guide — Rates, Payments & How to Save
Published: 2026-03-26
As of March 2026, the average 30-year fixed mortgage rate stands at 6.22% (Freddie Mac PMMS, March 19, 2026), while the 15-year fixed rate is 5.54%. With home prices remaining elevated, understanding how mortgage payments work — and how to reduce them — is essential for any prospective homebuyer. This guide breaks down everything you need to know about US mortgages in 2026.
1. Current Mortgage Rates (March 2026)
| Loan Type | Rate (Mar 2026) | Rate (Mar 2025) |
|---|---|---|
| 30-Year Fixed | 6.22% | 6.67% |
| 15-Year Fixed | 5.54% | 5.83% |
| 5/1 ARM | ~5.90% | ~6.20% |
Rates have decreased roughly half a percentage point year-over-year, but remain well above the sub-3% lows seen during 2020–2021. The Federal Reserve's monetary policy continues to be the primary driver of mortgage rate movements.
2. 30-Year vs 15-Year Mortgage Comparison
The two most popular mortgage terms are 30-year and 15-year fixed. Here is how they compare on a$400,000 loan:
| Feature | 30-Year at 6.22% | 15-Year at 5.54% |
|---|---|---|
| Monthly Payment (P&I) | $2,459 | $3,271 |
| Total Interest Paid | $485,240 | $188,780 |
| Total Cost | $885,240 | $588,780 |
| Interest Savings | — | $296,460 |
The 15-year mortgage saves nearly $300,000 in interest but requires $812 more per month. Choose the 30-year for affordability and cash flow flexibility, or the 15-year if you can handle the higher payment and want to build equity faster.
3. Payment Examples by Home Price
Here are monthly principal and interest payments at the current 30-year rate of 6.22%, assuming a 20% down payment:
| Home Price | Down Payment (20%) | Loan Amount | Monthly Payment |
|---|---|---|---|
| $300,000 | $60,000 | $240,000 | $1,475 |
| $400,000 | $80,000 | $320,000 | $1,967 |
| $500,000 | $100,000 | $400,000 | $2,459 |
| $700,000 | $140,000 | $560,000 | $3,443 |
These figures are principal and interest only. Your actual payment will also include property taxes, homeowner's insurance, and potentially PMI and HOA fees.
4. What Is PMI and How to Avoid It
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's purchase price. PMI protects the lender (not you) if you default on the loan. It typically costs between 0.5% and 1.5% of the loan amount per year.
Example: $400,000 home with 10% down ($360,000 loan)
PMI at 0.8%: $360,000 × 0.8% = $2,880/year = $240/month
That is $240/month on top of your mortgage payment until you reach 20% equity.
Ways to avoid or eliminate PMI:
- Put 20% down: The most straightforward way to avoid PMI entirely.
- Request cancellation at 20% equity: Once your loan balance reaches 80% of the original value, request PMI removal. It is automatically canceled at 78%.
- Piggyback loan (80/10/10): Take a second loan for 10% to avoid PMI on the primary mortgage.
- Lender-paid PMI: Some lenders offer to pay PMI in exchange for a slightly higher interest rate.
Calculate your monthly mortgage payment
Enter your home price, down payment, and interest rate to see your exact monthly payment with our mortgage calculator.
US Mortgage Calculator →5. How to Lower Your Mortgage Rate
Even small rate reductions can save tens of thousands over the life of a loan. Here are proven strategies:
- Improve your credit score: Borrowers with scores above 760 typically receive the best rates. Pay down credit cards, avoid new debt, and check your report for errors.
- Make a larger down payment: A 25% or 30% down payment signals lower risk to lenders and often unlocks better rates.
- Buy mortgage points: Each "point" costs 1% of the loan amount and typically reduces the rate by 0.25%. On a $400,000 loan, one point costs $4,000 and saves ~$66/month.
- Shop multiple lenders: Rate quotes can vary by 0.5% or more between lenders. Get at least 3–5 quotes and use them to negotiate.
- Choose a shorter term: 15-year loans typically carry rates 0.5–0.75% lower than 30-year loans.
6. When to Refinance
Refinancing replaces your existing mortgage with a new one, ideally at a lower rate. The general rule of thumb: refinancing makes sense if you can lower your rate by at least 0.75–1 percentage point and plan to stay in the home long enough to recoup closing costs (typically 2–5% of the loan amount).
Refinance example: $400,000 loan at 7.0% → 6.22%
Old payment: $2,661/month
New payment: $2,459/month
Monthly savings: $202
Closing costs (~2%): $8,000
Break-even: 8,000 ÷ 202 = ~40 months
7. Mortgage Interest Deduction (OBBA)
Under the One Big Beautiful Bill Act (signed into law in 2025), the Tax Cuts and Jobs Act (TCJA) provisions were made permanent. This means the mortgage interest deduction remains limited to interest on up to $750,000 of mortgage debt for homes purchased after December 15, 2017. The new higher standard deduction ($16,000 single / $32,000 married filing jointly) means fewer taxpayers will benefit from itemizing mortgage interest, but it still provides significant savings for homeowners in high-cost areas.
- Deduction limit: Interest on first $750,000 of mortgage debt
- Must itemize deductions on Schedule A to claim
- SALT cap remains at $40,000 (raised from $10,000 under OBBA)
- Home equity loan interest is deductible if used for home improvements
8. Types of Mortgages
| Type | Down Payment | Best For |
|---|---|---|
| Conventional | 3–20% | Good credit (620+), strong finances |
| FHA | 3.5% | Lower credit scores (580+), first-time buyers |
| VA | 0% | Military veterans and active duty |
| USDA | 0% | Rural areas, income limits apply |
| Jumbo | 10–20% | Loans above conforming limit ($766,550 in 2026) |
Use our mortgage calculator to compare different loan amounts, rates, and terms for your specific situation.
Calculate your 2026 mortgage payment:
US Mortgage Calculator →Sources: Freddie Mac Primary Mortgage Market Survey (PMMS), Federal Reserve, Consumer Financial Protection Bureau (CFPB), IRS.
Frequently Asked Questions
What is the current 30-year mortgage rate in 2026?
As of March 19, 2026, the average 30-year fixed mortgage rate is 6.22% according to Freddie Mac's Primary Mortgage Market Survey. This is down from 6.67% a year ago. Daily rate trackers show rates fluctuating between 6.2% and 6.4% in late March 2026.
How much is the monthly payment on a $300,000 mortgage?
At the current 30-year rate of 6.22%, the monthly principal and interest payment on a $300,000 mortgage is approximately $1,844. With a 20% down payment on a $375,000 home, your loan would be $300,000. Add property taxes and insurance for your total monthly housing cost.
Is the mortgage interest deduction still available in 2026?
Yes. Under the One Big Beautiful Bill Act, the mortgage interest deduction remains available for interest paid on up to $750,000 of mortgage debt. You must itemize deductions on Schedule A to claim it. The increased standard deduction ($16,000 single / $32,000 MFJ) means many taxpayers may benefit more from the standard deduction instead.