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Mortgage Payment Calculator

Calculate your exact monthly mortgage payment including principal, interest, property taxes, and homeowners insurance — so you know the true cost before you buy.

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Understanding Your PITI Payment

Your monthly payment has four parts — Principal (paying down what you borrowed), Interest (the lender’s fee), Taxes (property taxes in escrow), and Insurance (homeowners insurance in escrow). This is called PITI.

If your down payment is under 20%, lenders typically require PMI (Private Mortgage Insurance) of $50–$300/month until you reach 20% equity. Factor this into your budget.

Real-World Mortgage Payment Examples

Example 1: $400,000 Home, 20% Down, 6.75% Rate — 30-Year Term

On a $400,000 home with $80,000 down (20%), a $320,000 loan at 6.75% for 30 years produces a principal and interest payment of $2,076/month. Adding $400/month in property taxes and $100/month in insurance brings your total PITI to $2,576/month. Over 30 years you’ll pay $427,000 in interest — more than the original purchase price of the home.

Example 2: $550,000 Home, 10% Down — PMI Impact

Buying a $550,000 home with only 10% down ($55,000) means financing $495,000 at 7% for 30 years. Your P&I payment is $3,294/month. But with less than 20% down, you’ll also pay PMI of approximately $200–$300/month, bringing your total to $3,500–$3,600/month until you reach 20% equity — typically 7–10 years at this balance and rate.

Example 3: Same Loan — 15-Year vs. 30-Year Comparison

On a $320,000 loan at 6.75%, a 30-year term gives you a $2,076/month payment and $427,000 in total interest. Switching to a 15-year term raises your payment to $2,832/month (+$756/month) but slashes total interest to $189,000 — saving you $238,000. If you can afford the higher payment, the 15-year mortgage is one of the most powerful wealth-building moves available.

Example 4: $280,000 Loan — The Cost of a Higher Interest Rate

On a $280,000 30-year mortgage, the difference between 6.5% and 7.5% seems small but the math is stark. At 6.5% your payment is $1,770/month and total interest is $357,000. At 7.5% your payment is $1,958/month and total interest is $424,000. A single percentage point costs you $188/month and $67,000 extra in interest over the life of the loan.

Frequently Asked Questions

How much house can I afford?+
A common guideline is keeping your total housing payment (PITI) under 28% of gross monthly income. On $8,000/month, aim for under $2,240. Your full debt load should stay under 43% of gross income.
Is a 15-year or 30-year mortgage better?+
A 15-year has higher payments but far less total interest. A 30-year has lower payments and more cash flow flexibility. Use the term selector above to compare your specific numbers.
What is PMI and when do I need it?+
PMI (Private Mortgage Insurance) protects the lender if you default. It’s required when you put less than 20% down and typically costs 0.5–1.5% of the loan annually. You can cancel it once you reach 20% equity.
Should I pay points to get a lower rate?+
It depends on how long you’ll stay in the home. Use our Mortgage Points Break-Even Calculator to find your specific break-even month.
Find out if buying points is worth it

From the Blog

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Rent vs. Buy: How to Find Your Personal Break-Even MonthThe one number that tells you whether buying makes financial sense in your market.Read the guide →

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From the Blog

HOME BUYING · 9 MIN READRent vs. Buy: How to Find Your Personal Break-Even MonthThe break-even month is the only number that matters in the rent vs. buy debate. Here’s how to calculate yours with real scenario comparisons.Read article →

Also Try

📍 Mortgage Points CalculatorFind out if buying points is worth it
🏡 Rent vs. Buy CalculatorFind your exact break-even month
📊 Loan Amortization CalculatorSee your full mortgage payment schedule