Mortgage Calculator

Calculate your complete monthly payment with taxes, insurance, PMI & more

Get a complete picture of your monthly mortgage payment with our comprehensive calculator. See your PITI breakdown (Principal, Interest, Taxes, Insurance), track equity growth over time, compare different loan terms, and understand the true cost of homeownership. Includes automatic PMI calculation and removal tracking at 20% equity.

Open Source & Transparent

All calculations are open source and verifiable on GitHub. We believe in transparency and welcome contributions to improve our tools.

Monthly Mortgage Payment

Warning - Very High Interest30-year term

$2,481.00

P&I Payment

$2,023

Total Interest

$408,142

Total Cost

$893,142

Loan Amount

$320,000

Home Purchase Details

$
$50K$2M
$
%
2%12%

Additional Costs (Taxes, Insurance, HOA)

%

$4,000/year = $333/month

$

$125/month

$

If applicable (condos, townhomes, planned communities)

$

Additional principal payment to pay off loan faster

Key Milestones

25% Equity

Year 5

$100,047 equity

50% Equity

Year 19

$199,989 equity

75% Equity

Year 26

$301,039 equity

Loan Summary

Home Price$400,000
Down Payment$80,000 (20.0%)
Loan Amount$320,000
Interest Rate6.500% APR
Loan Term30 years
Monthly P&I$2,023
Total Monthly$2,481
Total Interest$408,142
Total Cost$893,142

Money-Saving Tips

  • Put 20%+ down to avoid PMI ($80,000 for this home)
  • Shop multiple lenders—even 0.25% lower rate saves thousands
  • Make extra principal payments to pay off faster
  • Consider a 15-year mortgage for lower total interest

What is PITI?

PITI stands for the four components of a mortgage payment:

P – PrincipalLoan repayment

I – InterestCost of borrowing

T – TaxesProperty taxes

I – InsuranceHomeowners insurance

Lenders use PITI to determine how much house you can afford (DTI ratio).

Understanding Your Mortgage Payment

A mortgage payment is more than just repaying your loan. Your monthly payment typically includes several components, collectively known as PITI: Principal, Interest, Taxes, and Insurance. Understanding these components helps you budget accurately and make informed decisions about your home purchase.

What is PITI? (Your Complete Payment)

P

Principal

The portion that reduces your loan balance. Starts small but grows over time.

I

Interest

The cost of borrowing. Starts high and decreases as your balance drops.

T

Taxes

Property taxes, typically held in escrow by your lender and paid annually.

I

Insurance

Homeowners insurance, also typically held in escrow and paid annually.

Note: If your down payment is less than 20%, PMI (Private Mortgage Insurance) is added. HOA fees are also common for condos and planned communities.

How Mortgage Amortization Works

With a fixed-rate mortgage, your monthly payment stays the same, but the split between principal and interest changes dramatically over time. This process is called amortization.

Early Payments

Most of your payment goes to interest. Your balance drops slowly, which is why extra payments early on have the biggest impact.

Middle Years

Payments become more balanced between principal and interest. You'll notice your equity growing more steadily during this phase.

Final Payments

Most of your payment goes to principal. Your balance drops quickly and equity builds rapidly as you approach payoff.

15-Year vs 30-Year Mortgage: Which Is Right for You?

30 30-Year Mortgage

Best for: Maximizing cash flow, first-time buyers

  • ✓ Lower monthly payments
  • ✓ More flexibility in budget
  • ✓ Extra cash can be invested elsewhere
  • ✗ Higher total interest paid
  • ✗ Slower equity building

15 15-Year Mortgage

Best for: Building equity fast, stable high income

  • ✓ Much lower total interest
  • ✓ Build equity twice as fast
  • ✓ Often lower interest rates
  • ✗ Higher monthly payments
  • ✗ Less budget flexibility

Private Mortgage Insurance (PMI)

If you put down less than 20% on a conventional loan, you'll typically need to pay PMI. This insurance protects the lender (not you) if you default. PMI typically costs 0.5% to 1% of the loan amount annually.

When PMI is Removed

Automatically cancelled at 22% equity, or you can request removal at 20% equity through regular payments or home appreciation.

How to Avoid PMI

Put 20%+ down, use a piggyback loan (80-10-10), or look into lender-paid PMI options with slightly higher rates.

5 Ways to Save on Your Mortgage

1

Shop Multiple Lenders

Even a 0.25% difference in rate can save tens of thousands over the life of your loan. Get at least 3-5 quotes.

2

Make Extra Principal Payments

Even $100/month extra can save thousands in interest and shave years off your mortgage. Our calculator shows the impact.

3

Put 20% Down to Avoid PMI

PMI can cost hundreds per month. If you can reach 20%, you'll save significantly over the loan term.

4

Improve Your Credit Score

Higher credit scores qualify for better rates. Pay down debts, fix credit report errors, and avoid new credit before applying.

5

Consider a Shorter Term

15-year mortgages often have lower rates and save massive amounts in interest. Use our comparison tab to see the difference.

Important Considerations

  • • Property taxes vary significantly by location (0.3% to 2.5%+ of home value annually)
  • • Insurance costs depend on location, coverage, home value, and deductible
  • • HOA fees can increase over time and vary widely by community
  • • Interest rates change daily—get pre-approved to lock in your rate
  • • This calculator provides estimates—your actual costs may vary

Frequently Asked Questions

What credit score do I need to get a mortgage? ▼

Conventional loans typically require 620+, FHA loans accept 580+ (500-579 with 10% down). Higher scores (740+) qualify for the best interest rates, potentially saving tens of thousands over the loan term.

How much house can I afford? ▼

Lenders use the 28/36 rule: housing costs should be ≤28% of gross income, and total debt ≤36%. For a $100,000 salary, that's roughly $2,333/month for housing. Use our DTI calculator for a precise assessment.

Should I pay points to lower my rate? ▼

Points make sense if you'll stay in the home long enough to recoup the upfront cost through monthly savings. Calculate your break-even point: cost of points ÷ monthly savings = months to break even.

What are closing costs? ▼

Closing costs typically run 2-5% of the home price and include loan origination fees, appraisal, title insurance, escrow deposits, and prepaid items. Budget for these in addition to your down payment.

When should I refinance my mortgage? ▼

Consider refinancing when rates drop 0.5-1% below your current rate, you want to switch loan terms, or you've built enough equity to remove PMI. Factor in closing costs (typically 2-3% of loan amount) when calculating savings.

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