Mortgage Payment Calculator
Calculate your monthly mortgage payments including principal, interest, property taxes, and homeowners insurance (PITI).
Monthly Payment Breakdown
Total Loan Amount
Total Interest Paid
Understanding Your Mortgage Payment
Your monthly mortgage payment typically consists of four main components, often referred to as PITI (Principal, Interest, Taxes, and Insurance). Understanding each component helps you budget accurately and make informed decisions about home ownership.
PITI Components Explained
- Principal: The portion of your payment that goes toward paying off the original loan amount. This builds equity in your home over time.
- Interest: The cost of borrowing money from your lender. Early in the loan term, most of your payment goes toward interest; later, more goes to principal.
- Property Taxes: Annual property taxes divided into monthly payments. These vary by location and are typically held in an escrow account.
- Insurance: Homeowners insurance protects your home and belongings. If your down payment is less than 20%, you'll also pay Private Mortgage Insurance (PMI).
Mortgage Planning Tips
Aim for 20% Down Payment
A 20% down payment helps you avoid Private Mortgage Insurance (PMI), reduces your monthly payments, and demonstrates financial stability to lenders. It also gives you immediate equity in your home and may qualify you for better interest rates.
Shop Around for Interest Rates
Even a 0.5% difference in interest rate can save tens of thousands of dollars over the life of your loan. Compare rates from at least 3-5 lenders including banks, credit unions, and online lenders. Check your credit score beforehand as higher scores qualify for better rates.
Consider the 28/36 Rule
Lenders typically prefer that your housing expenses (PITI) don't exceed 28% of your gross monthly income, and total debt payments don't exceed 36%. Staying within these limits helps ensure you can comfortably afford your mortgage.
Note: This calculator provides estimates based on the information you enter. Actual loan terms and payments may vary based on your credit score, location, lender requirements, and other factors. Property tax and insurance rates can change over time. Additional costs like HOA fees, utilities, and maintenance are not included. Consult with a mortgage professional for accurate rates, terms, and personalized advice specific to your situation.
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