Mortgage Calculator
Estimate your full monthly house payment, including taxes, insurance, PMI and HOA fees.
What goes into a mortgage payment
Lenders often call the monthly house payment PITI: principal, interest, taxes and insurance. Depending on your loan, you may also pay private mortgage insurance (PMI) and homeowners association (HOA) fees.
- Principal and interest come from the loan amount, rate and term, using the standard amortization formula.
- Property tax and insurance are usually collected monthly into an escrow account, so we divide the yearly amounts by 12.
- PMI applies to most conventional loans with less than 20% down. It typically costs 0.3% to 1.5% of the loan per year and can be removed once you reach 20% equity.
- HOA fees are paid to your community, not your lender, but they count toward what you can afford.
M = P × i ÷ (1 − (1 + i)−n)
Example
A $400,000 home with 20% down leaves a $320,000 loan. At 6.5% over 30 years, principal and interest is about $2,023 a month. Adding $4,400 a year in property tax and $1,800 in insurance brings the total to about $2,539 a month.
How much house can I afford?
A common rule of thumb is to keep your total housing payment under 28% of your gross monthly income, and all your debt payments under 36%. Try our budget calculator to see how a payment fits with everything else.