Mortgage Calculator

Estimate your monthly mortgage payment including principal, interest, taxes, insurance, PMI, and HOA.

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Monthly Payment
$2,103
Loan Amount
$320,000
Total Interest
$437,140
Total Paid
$757,140
Payoff Date
Apr 2056
Monthly Payment Breakdown
P&I: $2,103
Tax: $400
Insurance: $125
PMI: $0
HOA: $0
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How to Use This Mortgage Calculator

Enter your home price and down payment to see your loan amount. Pick a loan term and interest rate, then expand the optional section to add property tax, home insurance, PMI, and HOA fees for a complete PITI (Principal, Interest, Tax, Insurance) estimate.

What's included in your monthly payment?

  • Principal & Interest (P&I): The core loan repayment that pays down your mortgage balance.
  • Property Tax: Annual local tax on your home, divided by 12 and usually escrowed by your lender.
  • Home Insurance: Required by lenders. Average US homeowners insurance is around $1,400–$1,800/year.
  • PMI: Private Mortgage Insurance. Required when your down payment is less than 20% on a conventional loan.
  • HOA Fees: Common in condos, townhomes, and planned communities.

How is mortgage interest calculated?

Standard fixed mortgages use the formula:

M = P × [r(1+r)n] / [(1+r)n − 1]

Where M is monthly payment, P is loan principal, r is monthly interest rate (APR ÷ 12), and n is total number of payments (years × 12). Most of your early payments go toward interest; principal builds up over time.

30-year vs 15-year mortgage

A 30-year mortgage has lower monthly payments but you pay much more in total interest. A 15-year mortgage typically has a lower interest rate and saves tens of thousands in interest, but the monthly payment is significantly higher. Use this calculator to compare both terms with your numbers.

How much house can I afford?

A common rule is the 28/36 rule: spend no more than 28% of gross monthly income on housing (PITI), and no more than 36% on total debt. Lenders may approve higher, but staying conservative helps with savings, emergencies, and lifestyle.

Frequently Asked Questions

What is PITI? +
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment. Lenders use PITI to evaluate affordability, not just the loan repayment.
When can I drop PMI? +
On a conventional loan, you can request PMI removal once your loan balance reaches 80% of the home's original value. PMI is automatically terminated at 78% LTV. FHA mortgage insurance has different rules and often lasts the life of the loan.
Should I pay points to lower my interest rate? +
A discount point typically costs 1% of the loan and lowers your rate by about 0.25%. It usually pays off if you keep the loan beyond the break-even point (often 5–7 years). If you might refinance or move sooner, points may not be worth it.
Fixed-rate vs adjustable-rate (ARM)? +
A fixed-rate mortgage keeps the same interest rate for the entire term — predictable and safer. An ARM starts lower (e.g., 5/1 ARM) but can adjust after the intro period. ARMs can save money short term but carry interest-rate risk.
Are property taxes always included in my payment? +
Most lenders escrow property taxes and insurance, collecting 1/12 each month and paying the bills when due. Some loans (typically with 20%+ down) let you pay these directly, but you're still responsible for them.
What credit score do I need for a mortgage? +
Conventional loans typically require 620+, though 740+ gets the best rates. FHA loans accept 580 (or 500 with 10% down). VA and USDA loans are flexible. A higher score often saves tens of thousands over the loan term.
Is this calculator accurate for my real payment? +
It's a strong estimate, but actual payments depend on lender fees, exact property tax (set by your county), insurance quotes, and HOA dues. Always compare a Loan Estimate from at least 3 lenders.
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