Mortgage Calculator
Calculate your complete monthly mortgage payment including principal, interest, taxes, insurance, PMI, and HOA fees. Plan your home purchase with confidence and understand all costs involved.
Mortgage Details
Enter your home loan information
Affordability Guidelines
28% Rule
Housing costs should not exceed 28% of gross monthly income
36% Rule
Total debt payments should not exceed 36% of gross income
20% Down Payment
Recommended to avoid PMI and reduce monthly payments
Understanding PITI
PITI stands for Principal, Interest, Taxes, and Insurance - the four main components of your monthly mortgage payment:
- Principal: The amount that goes toward paying down your loan balance
- Interest: The cost of borrowing money from the lender
- Taxes: Property taxes paid to your local government
- Insurance: Homeowner's insurance to protect your property
Lenders typically require property taxes and insurance to be escrowed, meaning they collect these amounts monthly and pay them on your behalf.
Private Mortgage Insurance (PMI)
PMI is required when your down payment is less than 20% of the home's value. It protects the lender if you default on your loan.
- Cost: Typically 0.3% to 1.5% of the loan amount annually
- Removal: Can be removed when you reach 20% equity in your home
- Types: Borrower-paid, lender-paid, or single premium
- Avoid PMI: Make a 20% down payment or consider a piggyback loan
Money-Saving Tips
- Shop around: Compare rates from multiple lenders to find the best deal
- Improve credit score: Higher scores qualify for better interest rates
- Larger down payment: Reduces loan amount, monthly payments, and may eliminate PMI
- Shorter loan term: 15-year mortgages have lower rates and save interest
- Buy points: Pay upfront to reduce your interest rate
- Consider timing: Lock rates when they're favorable
Common Questions
How much house can I afford?
Follow the 28/36 rule: housing costs should not exceed 28% of gross income, and total debt should not exceed 36%.
What's included in closing costs?
Typically 2-5% of the loan amount, including appraisal, title insurance, attorney fees, and loan origination costs.
Should I pay points to lower my rate?
Calculate the break-even point. If you plan to stay in the home longer than the break-even period, points may be beneficial.