Mortgage Payment Calculator — With Taxes & Insurance
Your real monthly housing cost isn't just the loan payment — it's PITI: Principal, Interest, property Taxes and Insurance, plus PMI if your down payment is under 20%. This calculator shows the complete monthly figure lenders use to qualify you, and the eye-opening total you'll pay over the life of the loan.
PMI is applied automatically only when the down payment is below 20%, and typically drops off once you reach 20% equity.
Rates, property taxes and insurance vary by location and credit profile. Get an official Loan Estimate from your lender before committing.
How to use this tool
- Enter the home price and your planned down payment.
- Enter the interest rate you've been quoted and pick the term.
- Add yearly property tax and insurance for your area to get the true monthly cost (your lender escrows these).
- If your down payment is under 20%, the PMI estimate is added automatically.
Frequently asked questions
What is PITI and why do lenders use it?
PITI = Principal + Interest + Taxes + Insurance — your complete monthly housing obligation. Lenders qualify you on PITI, not just the loan payment, typically wanting it under 28% of gross monthly income (the \"front-end ratio\").
What is PMI and how do I avoid it?
Private Mortgage Insurance protects the lender when your down payment is under 20% — typically 0.5–1% of the loan per year. Avoid it by putting 20% down, or remove it later once you reach 20% equity through payments or appreciation (you must usually request removal at 20%; it auto-cancels at 22%).
Is a 15-year mortgage worth the higher payment?
A 15-year loan carries a lower rate and cuts total interest dramatically — often by 55–65% versus a 30-year. The trade-off is a much higher required payment. A popular middle path: take the 30-year for flexibility, but pay it like a 15-year when you can.
How much house can I afford?
A conservative rule: PITI ≤ 28% of gross monthly income, and all debts ≤ 36%. Work backwards: if you earn $8,000/month, keep PITI under ~$2,240 — then use this calculator to see what price fits at today's rates.
Why is total interest so shockingly high?
On a 30-year loan at 6.5%, you pay roughly 1.27× the loan amount in interest alone — more than the house's price. That's the cost of spreading payments over 360 months. Extra principal payments in the first 10 years attack this number hardest.