Mortgage Calculator with PMI, Taxes & HOA
Estimate your full monthly mortgage payment — including principal, interest, PMI, property taxes, homeowners insurance, and HOA fees. See your complete amortization schedule and print a mortgage receipt.
Loan Configuration
Estimated Monthly Payment
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Principal & Interest$ 0
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Property Taxes$ 0
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Home Insurance$ 0
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PMI$ 0
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HOA Fees$ 0
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Other Fees$ 0
Mortgage Repayment Summary
Amortization Schedule
See how your balance decreases over time, along with your yearly payments for Principal, Interest, and Taxes & Fees.
| Year / Month | Payment | Principal | Interest | Total Interest Paid | Remaining Balance |
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What Is a Mortgage and How Does It Work?
A mortgage is a loan specifically designed to help you buy real estate. You borrow a large sum from a lender, purchase the home, and repay the loan with interest over a set number of years. The home itself serves as collateral, which means the lender can foreclose if payments stop.
What trips up most first-time buyers is not the loan itself but the total monthly payment. Your payment is not just principal and interest. It also includes property taxes, homeowners insurance, and in many cases PMI — all collected monthly by your lender and held in an escrow account. This calculator adds all of those pieces together so you see the real number before you make an offer.
How to Use This Mortgage Calculator
Enter your home value and down payment in the first two fields. The calculator automatically computes your loan amount and down payment percentage. Then choose your loan term — most buyers pick 30 years for the lower monthly payment, or 15 years to pay significantly less interest overall — your loan type, and your expected interest rate.
Fill in your estimated annual property taxes and homeowners insurance. Your county assessor's website and your insurance provider can give you exact figures. If your down payment is under 20%, enter your PMI rate (typically 0.5% to 1.5% annually). Hit Calculate and you will see your full payment breakdown, a visual donut chart, and a complete year-by-year amortization schedule you can print or save as a PDF.
Breaking Down Your Monthly Mortgage Payment
| Component | What It Is | Who It Goes To |
|---|---|---|
| Principal | The portion that reduces your actual loan balance each month. Very small in the early years of a 30-year loan. | Your own home equity |
| Interest | The lender's charge for lending you the money. In the early years, most of your payment is interest, not principal. | Your lender |
| Property Tax | Collected monthly and held in escrow. Your lender pays your annual tax bill directly so it never falls behind. | Your local government |
| Home Insurance | Protects against fire, theft, storms, and other disasters. Required by virtually every lender as a condition of the loan. | Your insurance company |
| PMI | Private Mortgage Insurance. Required when your down payment is under 20%. Protects the lender, not you. | A mortgage insurance company |
| HOA Fees | Monthly dues for condos, townhomes, or planned communities with shared amenities. Not applicable to all homes. | Your homeowners association |
Loan Types: Which One Is Right for You?
Your loan type affects your down payment requirement, mortgage insurance rules, and the rates lenders will offer. Here is how the four major US loan programs compare side by side:
| Loan Type | Min. Down Payment | Min. Credit Score | PMI Required? | Best For |
|---|---|---|---|---|
| Conventional | 3% – 5% | 620 | Yes, if DP < 20% | Buyers with good credit who want flexible terms and no government fees |
| FHA | 3.5% | 580 | Yes (lifetime if DP < 10%) | First-time buyers or those with lower credit scores rebuilding their profile |
| VA | 0% | 580+ (lender varies) | No | Active military, veterans, and eligible surviving spouses |
| USDA | 0% | 640 | Yes (annual fee) | Buyers purchasing in eligible rural and suburban areas outside major cities |
One important note on FHA loans: the mortgage insurance premium works differently from conventional PMI. On an FHA loan with a down payment under 10%, you pay mortgage insurance for the entire loan term — not just until you reach 20% equity. That is a significant long-term cost that catches many buyers off guard.
Fixed-Rate vs. Adjustable-Rate Mortgages
A fixed-rate mortgage locks in your interest rate for the full loan term. Your principal and interest payment never changes, which makes long-term budgeting straightforward. Most American homebuyers choose a 30-year fixed for its lower monthly payment, even though the 15-year option saves a dramatic amount in total interest.
An adjustable-rate mortgage (ARM) starts with a lower introductory rate for a set period — commonly 5, 7, or 10 years — then adjusts annually based on a market index. A 7/1 ARM is fixed for seven years and adjusts every year after that. ARMs make sense if you are confident you will sell or refinance before the fixed period ends. If you stay longer, you take on real rate risk.
| Mortgage Type | How the Rate Works | Best Suited For |
|---|---|---|
| 30-Year Fixed | Rate never changes. Lower monthly payment but more total interest paid over 30 years. | Buyers prioritizing payment stability and planning long-term ownership |
| 15-Year Fixed | Rate never changes. Higher monthly payment but dramatically less total interest paid. | Buyers who can afford more monthly and want to build equity fast |
| 5/1 or 7/1 ARM | Fixed for 5 to 7 years, then adjusts annually based on prevailing market rates. | Buyers who plan to move or refinance before the initial fixed window closes |
How Much House Can You Actually Afford?
Lenders use two key ratios to determine how much they will lend you. Understanding them before you apply puts you in a much stronger negotiating position.
Front-end ratio: Your total monthly housing payment — principal, interest, taxes, and insurance — should not exceed 28% of your gross monthly income. On a $7,000 per month gross salary, that means a maximum housing payment of roughly $1,960.
Back-end ratio (DTI): Your total monthly debt payments — housing plus car loans, student loans, credit cards, and any other obligations — should stay below 43% of gross income. Many conventional lenders prefer 36% or lower for the best rates. FHA allows up to 50% DTI in some cases, but high DTI almost always results in a higher interest rate.
As a practical starting point, most buyers can comfortably afford a home priced at 3 to 4 times their annual household income, assuming a reasonable down payment and manageable existing debt. Use the calculator above to test specific scenarios — it is the fastest way to see exactly where your payment lands relative to your income.
Step-by-Step: The US Mortgage Process
Step 1 — Check your credit and clean it up. Pull your free credit report from AnnualCreditReport.com. Dispute any errors. Pay down revolving balances — your credit utilization ratio directly affects your score, and even a 20-point improvement can move you into a better rate tier and save thousands over the life of the loan.
Step 2 — Get pre-approved, not just pre-qualified. Pre-qualification is a quick estimate based on self-reported information. Pre-approval involves a hard credit pull and document review, and it carries real weight with sellers in a competitive market. Get pre-approved by at least two lenders so you can compare Loan Estimates side by side.
Step 3 — Shop for homes within your budget, not at the ceiling. Your pre-approval maximum is not your target. Leave breathing room for property taxes, insurance, maintenance costs, and life. A payment that stretches you in month one will only become harder over time.
Step 4 — Lock your rate and prepare for underwriting. Once you are under contract, lock your rate. Do not open new credit cards, change jobs, or make large purchases during underwriting — lenders re-verify your finances right before closing, and any major change can delay or kill the deal.
Step 5 — Close and get your keys. At closing you will sign final documents, pay your closing costs (typically 2% to 5% of the loan amount), and receive the keys. Your first mortgage payment is usually due on the first day of the second month after closing.
Frequently Asked Questions
How much is the monthly payment on a $400,000 mortgage?
With a 20% down payment ($80,000), a 30-year conventional loan at 6.5% interest has a principal and interest payment of about $2,023 per month. Adding typical property taxes, homeowners insurance, and other escrow items brings the total monthly payment to roughly $2,397. Your exact number depends on your local tax rate and insurance premium — plug your figures into the calculator above for a precise estimate.
What credit score do I need to qualify for a mortgage?
Conventional loans typically require a 620 minimum. FHA loans accept 580 with a 3.5% down payment, or as low as 500 with 10% down. VA and USDA loans do not have an official minimum, but most lenders want to see at least 580 to 620. Keep in mind that qualifying and getting a good rate are two different things — borrowers with scores above 740 generally receive the best rates available, which can translate to tens of thousands in savings over 30 years.
What is PMI and when can I stop paying it?
PMI stands for Private Mortgage Insurance and is required on conventional loans when your down payment is less than 20%. It protects the lender — not you — in case of default. On a $320,000 loan, PMI typically runs $130 to $480 per month depending on your credit score and lender. You can request cancellation once your loan balance falls to 80% of the original purchase price, and your lender is legally required to remove it automatically when your balance reaches 78%.
Is a 15-year or 30-year mortgage better?
A 30-year mortgage has a lower monthly payment and gives you more flexibility month to month. A 15-year mortgage has a higher payment but a lower interest rate, builds equity twice as fast, and costs dramatically less in total interest — often over $100,000 less on a typical loan. The right choice depends on your income stability, other financial goals, and how long you plan to stay in the home. Many financial planners suggest the 30-year loan if you will reliably invest the monthly payment difference.
Can I pay off my mortgage early?
Yes, and it is one of the most effective ways to save money on a home loan. Most conventional, FHA, VA, and USDA loans have no prepayment penalty, meaning you can make extra principal payments at any time. Paying just one extra full mortgage payment per year on a 30-year loan can shorten your payoff by 4 to 5 years and save tens of thousands in interest. Always specify in writing that extra payments should be applied to principal only, not future interest.
What are closing costs and how much should I expect to pay?
Closing costs are the fees required to finalize your mortgage and transfer ownership. They typically include loan origination fees, a home appraisal, title insurance, attorney fees, prepaid property taxes, prepaid homeowners insurance, and prepaid interest. Budget 2% to 5% of the loan amount. On a $350,000 loan, that is $7,000 to $17,500 on top of your down payment. Some of these costs can be negotiated with the seller or rolled into the loan balance, though rolling them in means paying interest on them for the life of the loan.
What is the difference between interest rate and APR?
The interest rate is the annual cost of borrowing the loan principal, expressed as a percentage. The APR — Annual Percentage Rate — is the broader measure. It includes the interest rate plus lender fees, discount points, mortgage broker fees, and other loan costs, all annualized over the loan term. APR is the better comparison tool when shopping multiple lenders because it reflects the true cost of borrowing, not just the base rate quoted on the front page of an advertisement.
What happens if I put less than 20% down?
Three things happen: your loan balance is higher so your monthly payment is higher, you will pay PMI until you reach 20% equity, and your lender may offer a slightly higher interest rate due to the increased risk. The upside is you keep more cash on hand for reserves, moving costs, and repairs. Whether to wait and save for 20% or buy now with a smaller down payment depends on your local market, what you are currently paying in rent, and your overall financial stability.
How do property taxes affect my monthly mortgage payment?
Property taxes are collected monthly by your lender as part of your escrow payment and paid directly to your local government. Tax rates vary enormously by state and county — from under 0.3% in Hawaii to over 2% in parts of New Jersey and Illinois. On a $400,000 home in a 1.5% tax rate area, that is $6,000 per year or $500 per month added on top of your base principal and interest payment. Always check your specific county's mill rate when estimating your true all-in monthly cost.