InterestLoanCalculator.com Making personal finance a breeze

Mortgage calculator with taxes, insurance and PMI

The whole payment, not just principal and interest. Tax, insurance, mortgage insurance and HOA dues all leave your account on the same day as the loan payment. This adds them up, and drops PMI at 80% loan-to-value rather than charging it for thirty years.

Mortgage calculator

Of the loan, per year

Principal and interest schedule

Tax, insurance and PMI are not part of the loan, so they are excluded from this table.

What makes up the payment

Principal and interest is the part people plan for. Tax, insurance and PMI are the part that surprises them.
Principal and interest is the part people plan for. Tax, insurance and PMI are the part that surprises them.

Lenders call it PITI: principal, interest, taxes and insurance. The first two go to the lender and shrink your debt. The other two are collected on your behalf and paid to your county and your insurer, usually through an escrow account. HOA dues are billed separately but come out of the same budget.

Mortgage insurance

With less than 20% down, most conventional lenders add private mortgage insurance. It protects the lender, not you. It must fall away automatically once the balance reaches 78% of the original value, and you can usually request removal at 80%. This calculator stops charging it at that point.

The figure that tends to surprise people

Look at total interest. On a 30-year loan at today's rates it often approaches the price of the house. That is not an argument against buying - it is the cost of borrowing a large sum for a long time - but it is better seen before signing than after.

Guides that explain this

Written with the same engine, so every figure agrees with the calculator.

Questions people actually ask

What is included in a monthly mortgage payment?

Principal, interest, property taxes and home insurance, often shortened to PITI. Taxes and insurance are usually collected by the lender into an escrow account and paid on your behalf. Mortgage insurance and HOA dues are added where they apply.

How much is PMI and when does it stop?

Private mortgage insurance commonly runs between 0.3% and 1.5% of the loan a year, charged monthly. On a conventional loan it must be cancelled automatically once the balance reaches 78% of the original value, and you can normally request removal at 80%.

Why is my lender's quote higher than this?

Escrow accounts are often funded with a cushion, tax assessments change after a sale, and quotes may include items this does not, such as flood insurance or a rate that assumes points you have not bought.

How much house can I afford?

Lenders look at the share of gross income going to housing and to all debts. Many conventional loans work to roughly 28% for housing and 36% for total debt, though limits vary by program. Those are underwriting ceilings, not a budget.

Other calculators