🏠 Mortgage Calculator

PMI (Private Mortgage Insurance) is automatically calculated when your down payment is less than 20% of the home price. Our mortgage calculator with PMI includes this in your monthly payment. Simply enter your home price, down payment percentage, and the calculator will show your total monthly payment including PMI, principal, interest, taxes, and insurance.

PMI typically costs 0.3% to 1.9% of your loan amount annually, divided into monthly payments. You can stop paying PMI once your loan balance reaches 80% of the original home value.

Your total monthly mortgage payment typically includes:

• Principal: The amount going toward paying off your loan
• Interest: The cost of borrowing money
• Property Taxes: Annual taxes divided into monthly payments
• Home Insurance: Homeowner's insurance premium
• PMI: Private Mortgage Insurance (if down payment < 20%)
• HOA Fees: Homeowners Association fees (if applicable)

Our calculator shows you a breakdown of each component so you know exactly what you're paying for.

Our mortgage calculator with taxes and insurance gives you a complete picture of your monthly housing costs. Simply enter:

• Your annual property tax amount (or percentage)
• Your annual home insurance premium

The calculator automatically divides these annual costs into monthly payments and adds them to your principal and interest payment. This gives you the true total monthly payment you'll need to budget for.

Tip: Property taxes average about 1.1% of home value annually, but vary by location. Check your local tax assessor's website for accurate rates.

Extra payments can save you thousands in interest and help you pay off your mortgage years earlier. Use our calculator's "Extra Payments" section to see the impact:

• Extra Monthly Payment: Add a fixed amount each month (e.g., $100, $200)
• Extra Yearly Payment: Make a lump sum payment annually

Example: On a $400,000 mortgage at 6.5% for 30 years, adding just $100/month extra can save you over $40,000 in interest and cut 5 years off your loan term!

The calculator shows you exactly how much interest you'll save and how much faster you'll pay off your loan.

Our affordability calculator uses the 28/36 rule to determine how much house you can afford:

• 28% Rule: Your total housing costs (mortgage + taxes + insurance) should not exceed 28% of your gross monthly income
• 36% Rule: Your total debt payments (housing + other debts) should not exceed 36% of your gross monthly income

Simply enter your annual income, monthly debt payments, and available down payment. The calculator shows you:

• Maximum home price you can afford
• Maximum monthly payment
• Recommended down payment
• Loan amount

Your debt-to-income (DTI) ratio is the percentage of your monthly income that goes toward debt payments. Lenders use this to determine if you can afford a mortgage.

How it's calculated: (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

What lenders prefer:

• Front-end DTI: Housing costs should be ≤ 28% of income
• Back-end DTI: Total debts should be ≤ 36% of income (some lenders allow up to 43%)

A lower DTI ratio means you're more likely to be approved and get better interest rates.

Consider refinancing when:

• Interest rates drop: If rates are 0.5-1% lower than your current rate
• Your credit improved: Better credit = better rates
• You want to shorten the term: Refinance to a 15-year loan to pay off faster
• You need cash flow: Extend the term to lower monthly payments
• You plan to stay long-term: Need enough time to recover closing costs

Use our refinance calculator to see your break-even point (how long to recover closing costs) and total savings.

The break-even point is how long it takes for your monthly savings to equal your closing costs.

Example: If closing costs are $5,000 and you save $200/month, your break-even point is 25 months (about 2 years).

Rule of thumb: Only refinance if you plan to stay in the home longer than the break-even point. Otherwise, you won't recover your closing costs.

Our calculator automatically calculates this for you based on your specific situation.

15-Year Mortgage:

• Higher monthly payments
• Lower interest rates (typically 0.25-0.5% lower)
• Pay off loan 15 years faster
• Save tens of thousands in interest

30-Year Mortgage:

• Lower monthly payments (more affordable)
• More flexibility in your budget
• Pay more total interest over time
• Can always pay extra to pay off faster

Use our "Compare Scenarios" feature to see side-by-side comparisons and decide what works best for your situation.

An amortization schedule shows how your mortgage payments are applied over time:

• Early payments: Mostly go toward interest, little toward principal
• Later payments: Mostly go toward principal, little toward interest

This is why paying extra early in your loan saves so much interest - you're reducing the principal balance faster.

Our calculator shows you a complete amortization schedule so you can see exactly how each payment is applied and how your balance decreases over time.

PMI (Private Mortgage Insurance) protects the lender if you default on your loan. You're required to pay PMI if your down payment is less than 20%.

You can stop paying PMI when:

• Your loan balance reaches 80% of the original home value (automatic removal)
• Your loan balance reaches 78% of the original value (some loans)
• You request removal after reaching 80% (may require appraisal)

Tip: Making extra payments can help you reach 80% faster and stop paying PMI sooner, saving you money.