Mortgage Calculator

Calculate your monthly mortgage payment including principal, interest, taxes, and insurance. Get a complete breakdown of your home loan costs.

Purchase price of the home

Upfront payment (typically 20% to avoid PMI)

Annual interest rate (current market average)

Length of the mortgage (enter any number of years)

Yearly property taxes (typically 1.2% of home value)

Yearly homeowners insurance premium

Private Mortgage Insurance (if down payment < 20%)

M = P x [r(1 + r)^n] / [(1 + r)^n - 1] + (Property Tax + Insurance + PMI) / 12
For a $300,000 home with $60,000 down (20%) at 6.5% for 30 years: Monthly P&I = $1,517, with taxes/insurance ≈ $1,917 total

What is included in a mortgage payment?

A mortgage payment typically includes PITI: Principal (loan amount), Interest (cost of borrowing), property Taxes, and Insurance. Some may also include PMI (Private Mortgage Insurance) if down payment is less than 20%, and HOA fees.

How much should I put down on a house?

Conventional wisdom suggests 20% down to avoid PMI, but FHA loans allow as little as 3.5% down. Larger down payments reduce monthly payments and total interest, but don't drain your emergency fund. Consider your financial situation and local market conditions.

What is PMI and when can I remove it?

PMI (Private Mortgage Insurance) protects the lender if you default. It's required when down payment is less than 20%. You can remove PMI once you reach 20% equity through payments or home appreciation, typically after 2-5 years.

Should I get a 15-year or 30-year mortgage?

30-year mortgages have lower monthly payments but higher total interest. 15-year mortgages build equity faster and save significantly on interest but require higher monthly payments. Choose based on your budget and financial goals.