Mortgage Payment Calculator

Q: What is PMI and when do I need it?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the homes value. It protects the lender if you default. PMI typically costs 0.5-1% of the loan amount annually and can be removed once you reach 20% equity.

Q: How accurate is this calculator?

This calculator provides a close estimate, but your actual payment may vary based on property tax rates, insurance quotes, HOA fees, and lender-specific requirements. Always get a detailed loan estimate from your lender.

A mortgage calculator helps you estimate your total monthly housing payment, including principal, interest, property taxes, homeowners insurance, and private mortgage insurance (PMI). Whether you're buying your first home or refinancing, understanding your true monthly cost is essential for budgeting. This calculator shows you exactly what to expect each month and helps you determine if a home is within your budget.

Calculator

How We Calculate This

Formula

Monthly Payment = P&I + Property Tax + Insurance + PMI (if down payment < 20%)

Step-by-Step

1. Calculate loan amount (home price minus down payment)
2. Determine if PMI is required (down payment less than 20%)
3. Calculate principal and interest using amortization formula
4. Add monthly property tax (annual tax rate × home price ÷ 12)
5. Add monthly insurance and PMI to get total payment

Assumptions

Fixed-rate mortgage
Property tax and insurance remain constant
PMI required if down payment < 20%
No HOA fees included

Methodology

Uses standard mortgage amortization formulas with adjustments for taxes, insurance, and PMI as defined by CFPB guidelines.

Sources

CFPB - Understanding Your Mortgage
Fannie Mae - HomeReady Mortgage
Federal Housing Finance Agency

Frequently Asked Questions

What is PMI and when do I need it?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the homes value. It protects the lender if you default. PMI typically costs 0.5-1% of the loan amount annually and can be removed once you reach 20% equity.

How accurate is this calculator?

This calculator provides a close estimate, but your actual payment may vary based on property tax rates, insurance quotes, HOA fees, and lender-specific requirements. Always get a detailed loan estimate from your lender.