Mortgage Calculator
Estimate your total monthly home payment, view a breakdown of your PITI expenses, and map out your long-term amortization schedule.
Loan Details
Taxes, Insurance & Fees
Payment Breakdown
Amortization Schedule
Year-by-year schedule showing interest and principal progression.
| Year | Beginning Balance | Principal Paid | Interest Paid | Total Interest Paid | Ending Balance |
|---|
Understanding Your Mortgage Payments
Calculating a mortgage involves multiple moving variables. Most buyers focus solely on the principal and interest payment, but local property taxes, home insurance, homeowners association (HOA) fees, and private mortgage insurance (PMI) can increase monthly obligations by 20% to 40%.
Components of a Mortgage Payment
- Principal: The portion of the payment that directly reduces the outstanding loan balance.
- Interest: The cost charged by the lender for borrowing the principal. It is heavily weighted at the beginning of the amortization.
- Property Taxes: Calculated annually based on local assessment values, typically held in an escrow account by the lender.
- Homeowners Insurance: Protects your property against damage, also typically paid into escrow.
- PMI: Lender insurance required for buyers who borrow more than 80% of the property value.
Calculating Amortization Math
The formula to calculate monthly Principal and Interest is:
Where:
• M = Monthly Principal & Interest payment
• P = Principal loan amount (Home price - Down payment)
• i = Monthly interest rate (Annual rate / 12)
• n = Total number of monthly payments (Years * 12)
Frequently Asked Questions
What does a PITI mortgage payment stand for?
PITI stands for Principal, Interest, Taxes, and Insurance. These are the four basic components of a monthly mortgage payment. It may also include Private Mortgage Insurance (PMI) and Homeowners Association (HOA) fees if applicable.
How much down payment do I need to avoid PMI?
In most cases, you need a down payment of at least 20% of the home purchase price to avoid paying Private Mortgage Insurance (PMI) on a conventional loan.
How does the loan term affect my monthly payment?
Shorter terms (like 15 years) have higher monthly payments but lower total interest costs over the life of the loan. Longer terms (like 30 years) lower your monthly payment but significantly increase the total interest paid.