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
| 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 saves over $231,000 in total interest. The trade-off is $578 higher monthly payments. The right choice depends on your cash flow, investment alternatives, and risk tolerance.
Frequently Asked Questions
Use the 28/36 rule: housing costs should not exceed 28% of gross monthly income, and total debt payments not exceed 36%. On a $90,000 annual salary ($7,500/month), maximum housing is $2,100/month PITI.
PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. It protects the lender, not you. Avoid it by making a 20% down payment, using a piggyback loan (80-10-10), or choosing lender-paid PMI (higher rate, no separate PMI charge).
A 15-year saves enormous 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 the 15-year payment fits comfortably, it usually makes mathematical sense to choose it.
Conventional loans typically require a minimum 620 score, with better rates at 740+. FHA loans accept scores as low as 580 (3.5% down). VA loans have no minimum score requirement, though lenders typically set their own minimums around 580–620.