Mortgage calculator with PMI, taxes & insurance
Understand mortgage payments
Whether you want to purchase or refinance, there are various loan options out there, and it’s important to know how different factors, like your down payment or location, could affect your monthly mortgage payment. Read our FAQs for more info.
Calculate payments
Enter your home price, down payment, ZIP code and credit score into our calculator to see which mortgage option may meet your needs. We’ll show you your estimated total mortgage payment, including principal, interest, taxes, insurance and PMI.
Take the next step
Once you find a mortgage that could work for you, start your preapproval online and one of our Home Lending Advisors will follow up with you.
What is a mortgage calculator?
A mortgage or home loan calculator is a digital tool that estimates your monthly payment and the terms of your mortgage. The calculator offers personalized recommendations that may include:
- Projected monthly mortgage payments, including a breakdown of principal and interest, property tax, homeowners insurance, potential homeowners association (HOA) fees and private mortgage insurance (PMI).
- Length of the mortgage (in years)
- Interest rate and annual percentage rate (APR)
- Closing costs
How can a mortgage calculator help me?
A mortgage calculator helps by estimating 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.
How do I calculate a mortgage payment?
You can calculate your mortgage payment by taking a few moments to fill out the information requested in the calculator tool above. Once you've filled out all required fields, choose the “Get loan options” button, which will return top loan recommendations. Reviewing each option may help you understand how your monthly payment would change depending on your loan terms. If you’re interested in taking the next step, choose the “Start online” button to start a preapproval for a mortgage.
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 interest rate will vary depending on your lender, the current 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 homeowners 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
If you’re wondering how to lower your monthly mortgage payment, here are a few things worth considering:
- 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.
- 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%.
If you already have a mortgage and are seeking ways to lower your existing monthly mortgage payment, here are some potential strategies to consider:
- Refinance your mortgage: Refinancing your mortgage may help you get a better interest rate and lower your monthly mortgage payments.
- Switch to 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.
- Make extra lump sum payments: 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, consider specifying if the extra payment goes toward your principal.
Mortgage calculator FAQs
The 28% rule and the 35%/45% model are two mortgage affordability tactics. The 28% rule states that a mortgage payment should (ideally) be about 28% or less of your monthly gross income. The 35% / 45% model states that your total monthly debt, including your mortgage payment, shouldn’t be more than 35% of your pre-tax income or 45% more than your after-tax income.
While these practices may be helpful, they aren’t for everyone. How much mortgage you can afford will depend on personal circumstances, like income, employment status and credit. If you’re interested in understanding more about what mortgage you can afford, consider trying out our affordability calculator.
Your down payment will depend on your mortgage type and personal affordability. If you’re looking to lower your monthly payments and avoid paying PMI fees, your down payment would be at least 20% of your home’s total cost. If you can’t put 20% down, don’t worry, there are many mortgage options that accept less.
Choosing a mortgage option and term requires careful consideration of your personal finances, risk tolerance and long-term goals. A shorter-term mortgage will come with larger monthly payments but may save you money on interest in the long-term. On the flip side, a longer-term mortgage will lower your monthly mortgage payment but takes longer to pay off, resulting in more interest paid over time.
Your interest rate will affect your mortgage through your monthly mortgage payments. When you begin paying off your loan, the majority of your early payments go toward interest. As your loan matures and you continue making payments, more of your payment goes toward the principal until you’ve paid off your loan in full.
Principal, interest, taxes and insurance are the building blocks of a mortgage payment and a few of the common mortgage terms you’ll find on the homebuying journey. Principal is the borrowed amount. Interest is what the lender charges for borrowing money and varies depending on the market and candidate. Taxes and insurance depend on where you live.
Mortgage information
Learn more about mortgages, access helpful tools and get tips on becoming a new homeowner.
Why is a mortgage calculator important?
Keeping your budget, lifestyle and goals in mind before you buy is important. We created our mortgage calculator to help you understand your budget from the moment you start looking for a home.
Simply enter the home price, your down payment, the property ZIP code, your credit score and what's most important to you when choosing a loan. Our calculator provides your estimated total mortgage payment, including principal, interest, taxes and insurance.
Looking for more mortgage tools?
Our affordability calculator and home value estimator can help you be a confident homeowner.
With our affordability calculator you can see how much you may be able to afford based on different scenarios, like how much you put down or the length of your loan. And our home value estimator shows you how much the homes you're looking at may be worth.
Want to learn more about mortgages?
From just thinking about buying to owning your own home, our how-to articles and blog posts are here to help you at every step.
Want to learn more about mortgages, refinancing and home equity? Our mortgage dictionary covers a variety of terms, and our FAQs provide answers to common buying and homeownership questions.
How do I start the homebuying process?
When you're ready to get started, our Home Lending Advisors are ready to help. You can also check current rates and start the preapproval process.
If you're interested in buying a second home or refinancing, the same applies. Our Home Lending Advisors are here to answer any questions you have.
Be prepared with these essential resources
Now that you have your home estimate, browse our collection of helpful articles and blog posts, use our tools to determine your mortgage payments, review current rates and see how to start your homebuying journey.
Build your knowledge
Check out our helpful how-to articles and informative blog posts, as well as things to consider before buying a home.
Explore helpful tools
Look up important mortgage terms in our comprehensive dictionary, and use our calculators to help set your budget.
Get answers
See our FAQs for answers to common questions on buying, refinancing and owning a home.