Mortgage Payment Calculator — Full Monthly Cost

Why the quoted payment is never the real payment

When a lender advertises a monthly payment, they are usually quoting principal and interest only. The amount that actually leaves your account each month is PITI: principal, interest, taxes and insurance — plus HOA dues and, if your down payment is under 20%, private mortgage insurance. On a typical American home those extras add 25–35% on top of the quoted figure. A $2,100 quote becomes a $2,750 obligation, and that gap is where buyers get caught.

Reading the breakdown

Principal and interest is fixed for the life of a fixed-rate loan. Everything else drifts. Property tax is reassessed periodically and generally rises with local valuations. Home insurance has been the most volatile line item of the last few years, with double-digit annual increases in states exposed to wildfire and hurricane risk. HOA dues are set by the association and can be raised by a vote, and special assessments arrive on top of them. Budget for the total to grow even when your rate cannot.

PMI, and how to get rid of it

Put down less than 20% and your lender requires private mortgage insurance — protection for them, paid by you, typically 0.5% to 1.2% of the loan per year. This calculator estimates it at 0.7% and drops it automatically once your down payment reaches 20%.

PMI is not permanent. Under the federal Homeowners Protection Act, you may request cancellation once your loan balance reaches 80% of the original purchase price, and the servicer must terminate it automatically at 78%. Both thresholds are based on the original value, not today's market value — so if your home has appreciated significantly, ordering a new appraisal and requesting cancellation on current value is often worth the few hundred dollars it costs.

What the interest rate is really costing you

Interest dominates the first decade. On a 30-year loan at 6.4%, roughly three quarters of each early payment is interest, and you will not cross the halfway point on a single payment until around year 18. Two consequences follow. First, small rate differences compound enormously — half a percentage point on a $336,000 loan is about $110 a month and nearly $40,000 across the full term, which is why shopping three or four lenders is worth a few hours. Second, extra principal paid early is worth far more than the same amount paid later, because it removes every future interest charge that would have accrued on it.

How much house you can actually afford

Lenders generally look for total housing cost at or below 28% of gross monthly income, and all debt payments combined below 36% — the "28/36 rule". These are underwriting limits, not recommendations. They take no account of childcare, retirement contributions, medical costs or an emergency fund, and being approved for a number is not the same as that number being wise.

Common questions

Does this include closing costs?

No. Closing costs are paid once at purchase, typically 2–5% of the price, and are separate from the recurring monthly payment this calculator estimates.

How is PMI calculated here?

At 0.7% of the loan amount per year, charged monthly, and applied only when the down payment is below 20% of the price. Your actual rate depends on credit score and loan-to-value ratio and may range from about 0.5% to 1.2%.

Should I choose a 15-year or a 30-year term?

A 15-year loan carries a lower rate and costs dramatically less in total interest, but the monthly payment is substantially higher. Set the term to 15 above to see both numbers for your situation. The 30-year with voluntary extra payments is a middle path that keeps flexibility if your income changes.

Are the results saved anywhere?

No. The calculation runs in your browser and nothing you type is transmitted or stored.

These results are estimates for planning purposes, not financial advice. Your lender sets your actual terms. See our terms of use.