Mortgage Calculator

What This Mortgage Calculator Includes

This calculator computes your full PITI payment — Principal, Interest, Taxes, and Insurance — which represents your true monthly housing cost. Most online calculators show only P&I, which significantly understates actual costs. Including taxes, insurance, and PMI gives you an accurate picture for budgeting and qualification.

Mortgage Payment Formula

P&I = Loan × [r(1+r)^n] / [(1+r)^n − 1] PITI = P&I + Monthly Tax + Monthly Insurance + PMI

30-Year vs 15-Year Mortgage Comparison

Loan	Rate	Term	Monthly P&I	Total Interest
$280,000	7.0%	30 years	$1,863	$390,680
$280,000	6.5%	15 years	$2,441	$159,380

The 15-year mortgage saves over $231,000 in total interest. The trade-off: monthly payments are $578 higher. The right choice depends on cash flow, investment alternatives, and risk tolerance.

What is PMI and When Can You Remove It?

Private Mortgage Insurance (PMI) protects the lender if you default when your down payment is less than 20%. PMI typically costs 0.3–1.5% of the loan amount annually. Once your loan-to-value ratio reaches 80% (20% equity), you can request PMI cancellation. Lenders must automatically cancel PMI when you reach 78% LTV based on the original payment schedule.

Frequently Asked Questions

A common guideline is the 28/36 rule: housing costs should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. On a $90,000 annual salary ($7,500/month), maximum housing: $2,100/month PITI. Total debt including car/student loans: $2,700/month.

PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. It protects the lender, not you. You can avoid PMI by making a 20% down payment, using a piggyback loan (80-10-10), or choosing a lender-paid PMI loan (higher interest rate in exchange for no separate PMI payment).

A 15-year mortgage saves enormous amounts of interest and builds equity faster, but requires higher monthly payments. A 30-year provides flexibility — you can always pay extra when cash flow allows. If you can comfortably afford the 15-year payment, it usually makes mathematical sense. If it strains your budget, the 30-year provides valuable breathing room.

Conventional loans typically require a minimum 620 score, with better rates at 740+. FHA loans accept scores as low as 580 (3.5% down) or 500 (10% down). VA loans have no minimum score requirement (though lenders set their own minimums, usually 580-620). Higher scores always result in lower interest rates.