Mortgage Payment Calculator
Calculate your monthly mortgage payment and view amortization details
Monthly Breakdown
Payment Breakdown
Balance Over Time
How the Mortgage Calculator Works
A mortgage is more than just a loan; it's a monthly commitment to principal, interest, taxes, and insurance.
Why Use This Tool?
Buying a home is likely the largest financial commitment you'll ever make. This calculator helps you see the 'true' cost of homeownership by including taxes, insurance, and PMI—costs that are often overlooked but can add hundreds to your monthly bill.
Understanding PITI
Your total monthly payment is often referred to as PITI, which stands for the four main components of homeownership costs.
- Principal: The portion that pays down your loan balance.
- Interest: The cost of borrowing, which is higher in the early years.
- Taxes: Local property taxes, usually held in an escrow account.
- Insurance: Homeowners insurance to protect your property.
The 20% Rule and PMI
If your down payment is less than 20% of the home price, lenders generally require Private Mortgage Insurance (PMI) to protect their investment.
- LTV (Loan-to-Value) Ratio: If this is above 80%, PMI is required.
- PMI typically costs between 0.5% and 1% of the loan amount annually.
- Once you reach 20% equity in your home, you can usually request to remove PMI.
HOA and Extra Costs
Homeowners Association (HOA) fees are common in condos and planned communities. While paid separately, they are a critical part of your housing budget.
- Taxes and Insurance: These are estimated based on local averages and home value.
- Closing Costs: Don't forget to budget 2-5% of the home price for upfront closing fees.