LATAM Mortgage Calculator
Month-by-month amortization.
Your mortgage
LATAM home loan
Average rate México: 11.5%
Monthly payment
$17,063
Loan amount
$1,600,000
Total interest
$2,495,090
Total paid
$4,095,090
Amortization (first 36 months)
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $17,063 | $1,730 | $15,333 | $1,598,270 |
| 2 | $17,063 | $1,746 | $15,317 | $1,596,524 |
| 3 | $17,063 | $1,763 | $15,300 | $1,594,761 |
| 4 | $17,063 | $1,780 | $15,283 | $1,592,982 |
| 5 | $17,063 | $1,797 | $15,266 | $1,591,185 |
| 6 | $17,063 | $1,814 | $15,249 | $1,589,371 |
| 7 | $17,063 | $1,831 | $15,231 | $1,587,540 |
| 8 | $17,063 | $1,849 | $15,214 | $1,585,691 |
| 9 | $17,063 | $1,867 | $15,196 | $1,583,824 |
| 10 | $17,063 | $1,885 | $15,178 | $1,581,939 |
| 11 | $17,063 | $1,903 | $15,160 | $1,580,037 |
| 12 | $17,063 | $1,921 | $15,142 | $1,578,116 |
| 13 | $17,063 | $1,939 | $15,124 | $1,576,177 |
| 14 | $17,063 | $1,958 | $15,105 | $1,574,219 |
| 15 | $17,063 | $1,977 | $15,086 | $1,572,242 |
| 16 | $17,063 | $1,996 | $15,067 | $1,570,247 |
| 17 | $17,063 | $2,015 | $15,048 | $1,568,232 |
| 18 | $17,063 | $2,034 | $15,029 | $1,566,198 |
| 19 | $17,063 | $2,053 | $15,009 | $1,564,144 |
| 20 | $17,063 | $2,073 | $14,990 | $1,562,071 |
| 21 | $17,063 | $2,093 | $14,970 | $1,559,978 |
| 22 | $17,063 | $2,113 | $14,950 | $1,557,865 |
| 23 | $17,063 | $2,133 | $14,930 | $1,555,732 |
| 24 | $17,063 | $2,154 | $14,909 | $1,553,578 |
| 25 | $17,063 | $2,174 | $14,888 | $1,551,404 |
| 26 | $17,063 | $2,195 | $14,868 | $1,549,208 |
| 27 | $17,063 | $2,216 | $14,847 | $1,546,992 |
| 28 | $17,063 | $2,238 | $14,825 | $1,544,755 |
| 29 | $17,063 | $2,259 | $14,804 | $1,542,496 |
| 30 | $17,063 | $2,281 | $14,782 | $1,540,215 |
| 31 | $17,063 | $2,302 | $14,760 | $1,537,912 |
| 32 | $17,063 | $2,325 | $14,738 | $1,535,588 |
| 33 | $17,063 | $2,347 | $14,716 | $1,533,241 |
| 34 | $17,063 | $2,369 | $14,694 | $1,530,872 |
| 35 | $17,063 | $2,392 | $14,671 | $1,528,480 |
| 36 | $17,063 | $2,415 | $14,648 | $1,526,065 |
LATAM reality: In México you'll pay $2,495,090 in interest alone — 156% of principal. Prepay when you can: every dollar prepaid in month 1 saves 230× that in interest.
How this tool works
Buying a home is most people's biggest financial decision — and the worst-understood. LATAM mortgages are brutal: Mexico averages 10–12% annual, Colombia 13–16%, Chile 4–6%, and Argentina starts at 50%+ with UVA (inflation-indexed). Payment and amortization math (how much goes to interest vs capital each month) varies radically between countries — and almost nobody runs the numbers before signing.
This calculator applies real 2026 rates for 8 countries (Mexico, Colombia, Argentina, Chile, Peru, Brazil, Spain, US), computes your monthly payment with the French formula (fixed payment, interest-heavy at start declining over time) and projects the full amortization table month-by-month over the full term. We show the number nobody wants to show you before signing: total interest paid over the life of the loan. Spoiler: on a 30-year mortgage at 12%, you end up paying ~3.5× the original amount.
The banking system is designed to make the decision opaque. The bank advisor shows you only the monthly payment ('comfortable payment of $X') and hides the total cost. This calculator inverts the logic: it shows you the lifetime cost first, then the monthly payment. It lets you compare side-by-side: 15 vs 20 vs 30 years at the same rate. The difference between the three scenarios is usually the equivalent of another whole house in interest paid.
Typical cases where this tool saves you: 1) You're choosing between two loans from the same bank with rates 0.5% apart — the calculator shows that tiny difference equals $30K USD over 30 years. 2) You want to know how much extra down payment is worth. 3) You're comparing fixed vs variable/UVA in countries with volatile inflation. 4) You're modeling early prepayments: each extra $1,000 USD at the start of the loan saves you $3,000–5,000 in future interest.
Formula
Monthly payment = P × (r × (1+r)^n) / ((1+r)^n − 1) · P = loan amount, r = monthly rate (annual/12), n = number of payments (years×12). Total interest = (Payment × n) − P. Example: $100,000 USD at 30 years at 10% annual → $878/month payment, $315,926 USD total paid, $215,926 USD interest (215% of original loan).
How to use it, step by step
- 1
1. Pick the property country
Calculator loads real 2026 rates and practices per country: Mexico (10-12%), Colombia (13-16%), Argentina UVA (50%+), Chile (4-6%), Peru (8-10%), Brazil (10-13%), Spain (3-4%), US (6-7%). Rates are guidance — request a formal quote before signing.
- 2
2. Enter total property price
Closed sale price, not listing. If you negotiate to $200K USD, that's the number. Don't include closing or notary costs — those are separate fees the calculator handles separately.
- 3
3. Set down payment
Minimums by country: Mexico 10%, Colombia 30%, Chile 20%, Spain 20%, US 3.5% (FHA) or 20% (no PMI). More down = lower monthly payment, lower total interest and better rate offered (banks reward low risk). Each extra 10% can drop the rate 0.5–1%.
- 4
4. Pick the term
15, 20, 25 or 30 years. Longer = lower monthly payment but much higher total interest. The calculator shows all three in parallel. Rule: if you can afford the 15-year payment even though it stretches you, do it — it's the single decision that saves you the most money in your life.
- 5
5. Adjust annual rate if you have a formal quote
Default is the average 2026 market rate. If you already requested a quote (CAT in Mexico, TEA in Argentina/Peru, APR in US), replace the default with your real number. Calculator updates instantly.
- 6
6. Read the full amortization table
We show how much goes to interest vs capital each month over the full term. The brutal part: in the first 5 years, ~80% of your payment goes to interest, not capital. You only start amortizing capital meaningfully around year 12-15. That's why early prepayment is so powerful.
Use cases
- Compare two mortgages with rates 0.5% apart to see the real impact on total cost (typically $20K-50K USD over 30 years)
- Decide whether to put down 20% or 30%: how much it saves in interest and years of payment
- Model early prepayments: how much you save by paying $5K extra in year 2 vs year 15
- Compare terms 15 vs 20 vs 30 years at same rate — the difference equals another whole house
- Calculate how much credit you can request if your max payment should be ≤30% of net income
- Decide between fixed peso rate vs UVR (Colombia) or fixed vs UVA (Argentina) based on inflation outlook
- Justify refinancing: if rates dropped 1.5%, whether it's worth renegotiating or switching banks
- Negotiate rate with bank: showing up with the calculator and a competitor offer gets you 0.3-0.8% better
Common pitfalls
- <strong>Looking only at monthly payment, not total cost</strong>: bank designs the pitch around 'comfortable payment'. Always look at 'total to pay' — that's what matters in the end
- <strong>Underestimating closing costs</strong>: in Mexico ~5-7% additional (notary, ITP, appraisal, gestoría), Spain 10-12%, Colombia 4-6%. Not included in the loan, you pay them out of pocket upfront
- <strong>Accepting the first rate</strong>: banks always have 0.5-1.5% margin. Show up with a competitor quote and ask for a better rate — works in 80% of cases
- <strong>Not reading prepayment penalties</strong>: some contracts charge 1-3% of balance if you pay early. That destroys early amortization savings
- <strong>Confusing nominal rate with CAT/APR</strong>: Mexico requires showing CAT (includes insurance, fees, GAT). Nominal rate may be 10% but CAT 14% real
- <strong>Taking UVA in Argentina without understanding</strong>: your debt grows with inflation. If your salary doesn't adjust proportionally, payment becomes unpayable. Historically, up to 60% of UVA loans go into default
- <strong>30-year term because the payment fits</strong>: you pay nearly 3.5× the original amount. If you can afford 20 years even if tight, do it. The difference in total cost is brutal
- <strong>Ignoring opportunity cost</strong>: if your mortgage is at 5% and a conservative fund yields 8%, you benefit from long term without prepaying. If mortgage is at 12%, opposite
Frequently asked questions
- How is the monthly mortgage payment calculated?
- Uses the French formula: Payment = P × (r × (1+r)^n) / ((1+r)^n − 1), where P is loan amount, r is monthly rate, n is number of payments. Result: fixed payment combining interest (high at start) and principal (low at start, grows over time).
- Fixed or variable rate: which is better in 2026?
- Depends on country and risk appetite. Mexico/Chile/Spain/US: fixed at 20-30 years is standard and safe. Argentina: UVA (inflation-indexed variable) is the only real option, but dangerous. Colombia: fixed pesos or UVR (indexed). If you expect low inflation: fixed. If high: UVA or capped variable. Rule: if you can't handle a +30% payment increase, don't take variable.
- How much down payment should I give?
- Minimums per country in 2026: Mexico 10% (common 20-30%), Colombia 30-50%, Chile 20%, Spain 20% + ~10% closing costs, US 20% (no PMI) or 3.5% with FHA. Each extra 10% down lowers your offered rate 0.5-1% — worth maximizing if you have savings.
- Term of 15, 20 or 30 years: what's best for me?
- Mathematically: 15 years ALWAYS wins on total cost. Example $100K at 10%: 15 years $1,075/mo payment, total paid $193,430 (interest 93%). 30 years $878/mo payment, total paid $316,020 (interest 216%). The 30-year payment is 18% lower but you pay 63% more total. If you can afford 15-20 year payment even if tight, do it.
- Is it worth making early prepayments?
- Almost always yes, especially at the start of the loan. Each extra $1,000 USD you pay in year 2 saves ~$3,000-5,000 USD in future interest. Each $1,000 paid in year 25 saves only ~$200. Lesson: if you're going to prepay, the first 5-7 years are the golden window. Verify prepayment penalty in your contract.
- How much should I borrow: max payment rule?
- Universal rule: your monthly mortgage payment shouldn't exceed 25-30% of net income. Some banks approve up to 40% but it's dangerous — any setback destroys you. If your net income is $3,000 USD, max payment should be $750-900. With that payment at 20 years at 10% in Mexico, you can borrow ~$80K-95K USD.
- What is CAT (Mexico) and why is it higher than nominal rate?
- CAT = Total Annual Cost. Includes nominal rate + mandatory insurance (life, damages) + fees (opening, appraisal) + VAT. It's required to show CAT in Mexico by CONDUSEF regulation. Typical gap: 10% nominal / 13-15% CAT. Always compare by CAT, never nominal — banks market with nominal and hide the CAT.
- UVA in Argentina: how does it work and why is it risky?
- UVA loans have fixed rate (typically 4-8%) but outstanding principal adjusts monthly with inflation (CER index). If inflation is 100% annual, your debt grows 100%. Payment also adjusts. Historically, ~60% of UVA loans went into default when inflation accelerated post-2018. Only take UVA if your salary auto-adjusts with inflation (public sector, certain private with collective bargaining).
- Is it worth refinancing my mortgage?
- Three conditions for it to be worth it: 1) Market rates dropped at least 1-1.5% vs your current rate, 2) You have at least 7+ years of payments left (less, and closing costs eat the savings), 3) Cancellation penalty isn't too high. Run concrete math: monthly savings × remaining months − refinancing costs. If positive and >$5K USD, refinance.
- What closing costs should I budget besides the mortgage?
- Typical costs NOT included in the loan: Mexico: 5-7% of price (notary, ITP/ISAI, appraisal, gestoría, bank opening fee). Colombia: 4-6% (notary, registry, beneficencia, source retention). Spain: 10-12% (ITP/VAT, notary, registry, gestoría, appraisal). US: 2-5% (closing costs, title insurance, appraisal). Add them to the down payment for real budget.