Mortgage Calculator
Calculate monthly payment with PMI, property taxes & insurance (PITI). See full amortization schedule, affordability check, 15 vs 30 year comparison, and download your report.
Calculate first, then view your complete payment schedule showing how each payment splits between principal and interest.
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Enter loan amount and rate below to compare total costs side by side.
Calculate your exact monthly mortgage payment with our free mortgage calculator online. Enter home price, down payment percentage, loan term, interest rate, property taxes, and homeowners insurance. Instantly see your total monthly payment including principal, interest, property taxes, insurance (PITI), and PMI if applicable. Whether you're planning to put down 5% or 20%, our calculator shows the true cost, including PMI (Private Mortgage Insurance) that most first-time homebuyers overlook. Perfect for budget planning, comparing loan offers, or understanding affordability before making the largest purchase of your life.
How Monthly Mortgage Payments Break Down By Mortgage Calculator
Your mortgage payment has four components (PITI): principal (loan repayment), interest (lender's profit), taxes (annual property tax divided monthly), and insurance (homeowners insurance divided monthly). Example: A $350,000 home with $70,000 down (20%) on a 30-year loan at 6.2%. Loan amount: $280,000. Principal & Interest: $1,694/month. Property Tax (1% annually): $292/month. Homeowners Insurance ($1,200/year): $100/month. Total PITI: $2,086/month. This $2,086 is your actual housing cost—not the interest rate advertised. Many buyers focus only on the rate (6.2%) and ignore taxes and insurance, which add $300-500/month. Use our best mortgage calculator for this work.
PMI: The Hidden Cost Most First-Time Buyers Don't Know About
PMI protects the lender if you default. Required if down payment <20%. Costs 0.5-1% of loan amount annually, charged monthly. Example: $280,000 loan with 10% down = PMI at 0.8% annually = $2,240/year = $187/month added to your payment. Total jumps from $1,694 to $1,881—that's $187 extra monthly or $2,244 yearly. Another example: 5% down with 1% PMI rate = $233/month. Over 5 years, PMI costs $14,000+ even though you're building equity. PMI drops once equity reaches 20% (usually 5-7 years). This is why saving for 20% down saves thousands; use a mortgage calculator.
Property Taxes by State: Your Biggest Variable Cost
Property taxes vary dramatically by state. New Jersey: 0.88% (highest). Alabama: 0.41% (lowest). On a $350,000 home: New Jersey = $3,080/year ($257/month). Alabama = $1,435/year ($120/month). That's $137/month difference ($1,645/year). Illinois: 0.82%, Texas: 0.62%, Florida: 0.74%. Before buying, research your specific county's rate—rates vary within states. This single factor makes a $100,000 difference in total cost over 30 years. Use our calculator with your actual property tax rate for accurate estimates.
15-Year vs 30-Year Mortgages: The True Cost Comparison
30-year mortgage: $280,000 at 6.2% = $1,694/month P&I. Over 30 years = $1,694 × 360 months = $609,840 total paid. Interest cost: $609,840 - $280,000 = $329,840 in interest. 15-year mortgage: Same $280,000 at 5.8% (slightly lower rate) = $2,145/month P&I. Over 15 years = $2,145 × 180 months = $386,100 total paid. Interest cost: $386,100 - $280,000 = $106,100 in interest. Difference: 15-year saves $223,740 in interest but requires a $451/month higher payment ($2,145 vs $1,694). Monthly difference: $451 × 180 months (15 years) = $81,180 extra paid, but saves $329,840 - $106,100 = $223,740 in interest. Net savings with a 15-year loan: $142,560 over the loan life. Question: Can you afford the extra $451/month? If yes, 15 years wins on total cost. If not, a 30-year loan keeps cash flow flexible. Many buyers take 30-year but pay extra toward the principal when possible, the best of both worlds.
The 28/36 Affordability Rule: Can You Actually Afford It?
Lenders use the 28/36 rule: housing costs should max 28% of gross monthly income, and all debt should max 36%. Example: $100,000 annual salary = $8,333/month gross. Max housing = 28% = $2,333/month. Max all debt = 36% = $3,000/month. If your calculated mortgage payment is $2,500 but max is $2,333, you cannot afford this house at this price. Lenders will approve you up to 36%, but that's financially dangerous—leaves only $333/month for food, utilities, insurance, childcare, etc. The 28% rule exists for a reason. On a $350,000 home with $70,000 down (20%), monthly PITI is ~$2,086. This requires $8,875/month gross income ($106,500/year) to stay within 28%. If your income is $75,000/year ($6,250/month), you cannot afford this home. Use our calculator to find your max home price: work backward from your income. Don't stretch to the 36% limit—lenders approve what you can borrow, not what you can afford.
How Much House Can You Afford? The 28/36 Rule
Don't buy based on purchase price alone. Your monthly payment is the reality check. The 28/36 rule is industry standard: housing costs should max out at 28% of your gross monthly income, and total debt (all loans) should max out at 36%. Example: $100,000 annual salary equals $8,333/month gross income. Max housing is 28%, which equals $2,333/month. Max total debt is 36%, equal to $3,000/month. If you already have a $500/month car payment, your maximum housing budget becomes $2,500 total, not $2,333. Many first-time buyers ignore this rule and stretch too far. Lenders will often approve more than you can safely afford. Don't rely on lender pre-approval alone.
2026 Mortgage Rates & Current Market Context
2026 mortgage rates: 30-year fixed averaging 5.8-6.5%, 15-year fixed averaging 5.2-5.8%. Rates fluctuate weekly based on Federal Reserve policy and economic data. Better credit scores (760+) get 0.5-1% lower rates than those with fair credit (650-699). Each 0.5% rate difference = $150/month difference on a $280,000 loan = $54,000 over 30 years. Shopping rates with 3+ lenders is essential—rates vary between banks. Example: Bank A quotes 6.2%, Bank B quotes 5.9%. That 0.3% difference = $85/month = $30,600 over 30 years. Spend 1 hour getting quotes from 3+ lenders—easily worth $30,000 in savings. Also compare closing costs (origination fees, appraisal, and title insurance)—these vary by $1,000-3,000 between lenders. A lower rate with $2,000 higher closing costs might not be worth it if you're selling in 5 years.
Frequently Asked Questions About Mortgages
Q1. What's the difference between PMI and homeowners insurance?
PMI protects the lender if you default (required if down <20%). Homeowners insurance protects your property from fire, theft, and liability (required by the lender and protects you). PMI goes away once equity reaches 20%. Homeowners insurance is permanent and increases yearly. Don't confuse them—you need both if down <20%.
Q2. Should I put 20% down or less and invest the difference?
It depends on investment returns versus the mortgage rate. If a mortgage is 6.2% and the stock market averages 10%, investing extra money beats paying off a mortgage. But it requires discipline—most people don't invest the difference; they spend it. If uncertain, 20% down eliminates PMI and is safer psychologically. Example: $70,000 down (20%) versus $35,000 down (10%) + invest $35,000. If you invest and earn 10%/year = $3,500/year gain. Meanwhile, PMI costs $2,800/year. Net advantage: $700/year investing. But if the market drops 20%, you lose $7,000 while still paying PMI. Conservative choice: 20% down. Aggressive choice: less down, invest the difference.
Q3. How much house can I actually afford?
Use the 28/36 rule: Housing costs should max out at 28% of your gross monthly income. Total debt (all loans) should max 36%. For example, a $100,000 annual income equals max $2,333/month housing. This includes principal, interest, taxes, insurance, and HOA. If this seems tight, consider looking at lower-priced homes or saving a larger down payment before buying.
Q4. Why do property taxes vary so much by state?
States set their own property tax rates. New Jersey has the highest at 0.88% of home value, while Alabama has one of the lowest at 0.41%. On a $350,000 home, New Jersey property taxes equal $3,080/year ($257/month), while Alabama equals $1,435/year ($120/month). That's a $137/month difference just from location. Always check local property tax rates before buying in a new state.
Q5. What's the best strategy for paying off a mortgage early?
Make extra principal-only payments. Example: $1,694 regular payment + $100 extra toward principal = $1,794/month. This $100 × 12 months/year = $1,200/year extra toward principal cuts years off the loan. On a $280,000 loan, an extra $100/month saves ~$50,000 in interest and pays off 5-7 years early. Many buyers refinance when rates drop instead of making extra payments—refinancing costs $2,000-5,000 in fees but is worth it if the rate drops 0.5%+ and you stay 5+ more years.
Q6. How much in closing costs should I expect?
2-5% of loan amount. On a $280,000 loan: $5,600-14,000. Includes origination fee (0.5-1%), appraisal ($400-600), title insurance ($500-1,500), closing/escrow ($500-1,500), inspections ($300-500), and attorney fees ($500-1,500 depending on state). Don't ignore closing costs when comparing loan offers. A $50/month savings on rate isn't worth $5,000 higher closing costs if you're selling in 5 years.