Advanced Mortgage Payment Calculator
Estimate your monthly mortgage payments including principal, interest, taxes, and insurance (PITI).
Understanding Your Mortgage Payment Breakdown
When you take out a mortgage to buy a home, your monthly payment is often composed of four main parts, commonly referred to as PITI: Principal, Interest, Taxes, and Insurance.
Principal & Interest: The principal is the money you borrowed to buy the house, while interest is the cost of borrowing that money. In a standard amortization schedule, your early payments go primarily toward interest, while later payments pay down more principal.
Why Include Taxes and Insurance?
Many lenders require an escrow account where they collect funds for property taxes and homeowners insurance along with your mortgage payment. This ensures these critical bills are paid on time. Our calculator includes fields for annual property tax and insurance to give you a realistic view of your total monthly housing obligation.
What is PMI?
Private Mortgage Insurance (PMI) is usually required if your down payment is less than 20% of the home's purchase price. It protects the lender if you default on the loan. This calculator automatically checks if your down payment is under 20% and applies the estimated PMI rate to your monthly costs.
How Interest Rates Affect Affordability
Even a small change in interest rates can significantly impact your monthly payment. For example, on a $300,000 loan, the difference between a 6% and a 7% interest rate can add roughly $200 to your monthly payment. Use the input fields above to test different rate scenarios to see what fits your budget.