Estimate your total monthly mortgage payment, including principal, interest, property tax, home insurance, and PMI.
Your monthly mortgage payment is usually made up of four parts, sometimes called PITI: principal and interest on the loan itself, plus a share of your annual property tax and home insurance collected monthly into an escrow account. If your down payment is under 20% of the home price, lenders typically also require private mortgage insurance (PMI) until you build enough equity.
Principal and interest are calculated with the standard mortgage amortization formula, using your loan amount (home price minus down payment), interest rate, and term. Property tax, insurance, and PMI are simply their annual costs divided by 12.
Loan term has a big effect: a 30-year loan spreads principal over more payments, lowering the monthly amount but increasing total interest paid over the life of the loan compared to a 15-year term. A larger down payment reduces both your loan amount and, once it clears 20%, removes the PMI requirement entirely.
Does this include closing costs?
No. Closing costs are a one-time upfront expense (typically 2-5% of the loan amount) and aren't part of your recurring monthly payment, so they aren't included here.
When does PMI go away?
PMI is generally required until your loan balance drops to 80% of the home's original value, either through payments or appreciation. Some loans let you request removal once you reach that threshold.
Are property tax rates the same everywhere?
No, property tax rates vary significantly by state, county, and city. Check your local assessor's rate for a more accurate estimate than the default shown here.