Mortgage calculator
The full monthly cost of a home, not just the loan.
Total monthly payment
$2,547.62
| Principal and interest | |
| Property tax | |
| Home insurance | |
| PMI (while it lasts) | |
| HOA | |
| Total interest over the loan | |
| Total PMI paid before it drops |
| Year | Interest | Principal | Ending balance |
|---|
What is inside a mortgage payment
A mortgage payment has two layers. The first is the loan itself: principal and interest, set by the amount borrowed, the rate and the term. On a $320,000 loan at 6.5% over 30 years that layer is about $2,023 a month, and over the full term the interest roughly matches the amount borrowed. The second layer is the cost of owning the home: property tax and insurance, usually collected monthly into escrow, plus HOA fees where they apply. Quoting only the first layer is how a home can look affordable in an advertisement and expensive in real life.
PMI sits between the two layers. Put down less than 20% and most lenders add private mortgage insurance, priced here as a yearly percentage of the loan. It protects the lender, not you, and it ends: this calculator drops PMI month by month once the balance falls to 80% of the purchase price, and shows the total PMI you would pay before that point. A bigger down payment, or extra principal early, shortens that PMI stretch as well as cutting interest.
The term choice is a trade, not a saving. A 15-year loan carries a higher payment and a far lower rate in most markets, and it builds equity at several times the speed. The schedule below the results shows why: in the early years of a 30-year loan, most of each payment is interest, so the balance barely moves.
Frequently asked questions
What is the monthly payment on a $400,000 home with 20% down at 6.5%?
The loan is $320,000 and principal and interest come to $2,022.62 a month over 30 years. Add $4,800 a year of property tax and $1,500 of insurance, the defaults shown here, and the full monthly cost is $2,547.62 before any HOA fees.
When does PMI stop?
Private mortgage insurance applies while you owe more than 80% of the home’s price. On a 10% down loan it typically runs for several years of payments; this calculator drops it automatically in the month the balance reaches 80% of the purchase price and shows the total PMI paid by then.
What does PITI stand for?
Principal, Interest, Taxes and Insurance: the four parts most lenders bundle into one monthly mortgage payment, holding the tax and insurance portions in escrow and paying them when they fall due.
Related calculators
Estimates only. Taxes, insurance and PMI vary by location, lender and credit profile; this tool is not financial or mortgage advice.