Calculators

Mortgage Calculator

Your full monthly house payment, with property tax, insurance, PMI and HOA, plus an amortization schedule.

How it works

The principal and interest part is a standard amortizing payment: fixed for the life of the loan, mostly interest at first and mostly principal by the end. Property tax and homeowners insurance are usually collected monthly into escrow. With less than 20% down, a conventional loan also charges private mortgage insurance until the balance falls to 78% of the home's original value.

PITI = P·r·(1+r)ⁿ ÷ ((1+r)ⁿ − 1) + tax + insurance + PMI + HOA
P
Loan amount: price minus down payment
r
Annual rate ÷ 12
n
Term in months, e.g. 360 for 30 years
PMI
Private mortgage insurance, charged yearly as a percentage of the loan

Worked example

A $400,000 home with 10% down, a 30-year loan at 6.5%, 1.1% property tax, $2,000 a year of insurance and PMI at 0.5%.

  1. 1Loan: 400,000 − 40,000 = $360,000; principal and interest $2,275.44
  2. 2Property tax: 400,000 × 1.1% ÷ 12 = $366.67
  3. 3Insurance: 2,000 ÷ 12 = $166.67
  4. 4PMI: 360,000 × 0.5% ÷ 12 = $150, for 109 months until the balance reaches $312,000

About $2,959 a month at first, falling by $150 once PMI ends after about 9 years. Interest over 30 years comes to $459,160.

Frequently asked questions

How can I avoid PMI?

Put 20% down, or use a loan without it: VA loans have none, and some lenders offer piggyback second mortgages. If you do pay PMI, it must stop automatically when the balance is scheduled to hit 78% of the original value. You can ask for it to be removed at 80%, sooner if extra payments get you there early.

Is a 15-year mortgage better than a 30-year?

A 15-year loan has a higher payment but usually a lower rate, and it costs far less interest over its life. A 30-year loan keeps the payment low and flexible, and you can still pay it off early with extra principal. Try both terms here and compare the total interest.

How much do extra payments save?

Every extra dollar goes straight to principal, so it saves all the interest that dollar would have cost for the rest of the loan. On a $360,000 loan at 6.5%, an extra $200 a month clears the loan about 6 years early. Enter an amount in Extra principal to see your own saving.

What does this leave out?

Closing costs, points, mortgage rate changes on an adjustable loan, and rises in tax and insurance over time. FHA loans charge an upfront premium and annual MIP instead of PMI, often for the life of the loan.

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