Mortgage calculator with PMI, taxes & insurance

Estimated mortgage payment factors

Multiple factors can influence your monthly mortgage payment. Here's what our calculator takes into account:

• Principal: The amount you borrow to buy your home. 
• Interest rate: The percentage charged on your home loan, a cost of borrowing money which directly impacts your monthly mortgage payment. 
• Property taxes: Local taxes based on your home’s value and location. You could pay them directly or have your lender collect them as part of your monthly mortgage. 
• Homeowner’s insurance: Coverage that can cover a variety of potential problems with your home and belongings. 
• Private mortgage insurance (PMI): Protects the mortgage provider if you default on the loan—usually required on conventional loans when less than 20% is put down. 
• Closing costs: One-time fees due at the end of the homebuying process (closing), which typically include appraisal, title and lender charges. 
• Homeowners association (HOA): If your home is part of a community with shared amenities or services, you may owe monthly HOA dues. These are not required for all properties but can add to your total cost.

How can a mortgage calculator help me?

A mortgage calculator helps estimate the terms of your mortgage, including projected monthly payments. This knowledge helps you understand how much home you can afford, which may, in turn, inform your house-hunting strategy, how you save up for a down payment and more. If you’re starting your home search or exploring different loan options, a mortgage calculator is a powerful tool that can help you plan with clarity and confidence. 

Here's how it can support your homebuying journey:

• Estimates your monthly mortgage payment based on important details, such as the loan amount, interest rate, property taxes, homeowner’s insurance and PMI.
• Helps you understand how much home you can afford by factoring in your income, estimated debts and down payment. A mortgage calculator can also help you keep your debt-to-income (DTI) ratio in a healthy range, which is important for loan approval.
• Lets you compare loan options, including short-term and long-term mortgage terms, to see how they affect your monthly payment and total interest paid over time.
• Guides your savings strategy by showing how different down payment amounts can affect your monthly mortgage payment and whether you will need private mortgage insurance. It can also help you plan how much cash you will need upfront for your down payment and closing costs.
• Supports smarter house hunting by helping you set a realistic budget and focus on homes within your financial reach.
• Can potentially help you plan for early payoff by modeling how extra payments could reduce your loan term and save you money on interest.

How do I calculate a mortgage payment?

To calculate your mortgage payment, just fill out a few details in our mortgage calculator tool above. Here's what you need to do:

1. Select your credit score range from the drop-down menu.
2. Choose how you plan to use the property (such as primary residence, second home or investment property).
3. Select the property type (for example, single-family home, co-op, condo or multifamily home).
4. Enter the ZIP code or county where you plan on buying or refinancing.
5. Add the price of the home you want to buy, or the current value of your home if you plan on refinancing.
6. Enter your down payment amount, or your home equity if refinancing (the down payment percentage will auto-adjust).
7. Select "Get loan options" to see personalized mortgage recommendations. 

If you’re interested in taking the next step, start the mortgage preapproval process by clicking the "Start online" button.

 

What’s included in a mortgage payment?

Principal, interest, property taxes and insurance are the building blocks of a mortgage payment.

• Principal is the original amount you borrowed from your lender. 
• Interest is the cost of borrowing money expressed as a percentage rate on the borrowed principal. Your mortgage interest rate will vary depending on your market and your overall creditworthiness.
• Property tax is a tax paid on the property you own, based on the value of that property. This valuation for tax purposes is typically provided by a government-appointed assessor. 
• Insurance is your homeowner’s insurance policy, which is required by most lenders and may vary based on your loan type and where you live.

How to lower your monthly mortgage payment

There are a few practical ways you can lower your monthly mortgage payment, whether you’re a first-time homebuyer in the process of purchasing a home or already have a loan in place. Small changes in your loan terms or payment approach can make a noticeable difference.

1. Make a larger down payment: The more money you put down up front, the less you need to borrow. A higher down payment can lower your monthly payment and reduce long-term interest costs. Increase your down payment: If it’s possible to do so, increasing your down payment may help lower your monthly payments by reducing the amount you need to borrow.
2. Avoid private mortgage insurance (PMI): If your down payment is 20% or more, you may be able to avoid PMI, which is an added monthly cost required by many loan providers when you put down less than that on a conventional loan. Try to avoid private mortgage insurance (PMI): Depending on the size of your down payment, you may be able to avoid incurring the cost of private mortgage insurance (PMI), which is additional insurance lenders may require for down payments under 20%.
3. Consider an adjustable-rate mortgage (ARM):  An adjustable-rate mortgage may start with a lower introductory rate that temporarily lowers your monthly mortgage payments. Once the introductory period is over, your mortgage rate will adjust every term. Depending on the current market, your interest could go up or down.

If you are already have a mortgage and are seeking ways to lower your existing monthly mortgage payment, here are some potential strategies to consider:

1. Refinance your mortgage: Refinancing your mortgage may help you get a better interest rate and lower your monthly mortgage payments. This may involve closing costs.
2. Make extra lump sum payments toward your loan principal: By making extra mortgage payments, you may decrease the amount you owe and, ultimately, the amount of interest you pay. If you do make additional mortgage payments, contact your lender to recast the mortgage after you’ve put extra payments toward the principal.