Mortgage Calculator

Calculate PITI payments, PMI, and determine home affordability with detailed analysis

Mortgage Payment Calculator

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Home Affordability Calculator

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How to Use the Mortgage Calculator

PITI Calculation

Calculate total monthly payment including Principal, Interest, Taxes, and Insurance.

Example: $400K home with 20% down = $2,847/month PITI

PMI Analysis

Automatic PMI calculation for down payments less than 20%.

Benefit: See how PMI affects your monthly payment

Affordability

Determine maximum home price based on your income and debts.

Guidelines: 28% housing ratio, 36% total debt ratio

Complete Analysis

Includes HOA fees, property taxes, and insurance estimates.

Use case: Get the full picture of homeownership costs

Understanding PITI

PITI Components

  • Principal: Loan amount being paid down
  • Interest: Cost of borrowing money
  • Taxes: Annual property taxes divided by 12
  • Insurance: Homeowners insurance premium

Additional Costs

  • PMI: Private Mortgage Insurance if down < 20%
  • HOA: Homeowners Association fees
  • Maintenance: Typically 1-3% of home value annually
  • Utilities: Not included in PITI calculation

Frequently Asked Questions

1. What does PITI stand for?

PITI stands for Principal, Interest, Taxes, and Insurance - the four main components of your monthly mortgage payment.

2. When do I need to pay PMI?

PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home's purchase price.

3. How much house can I afford?

Generally, your housing costs shouldn't exceed 28% of your gross monthly income, and total debts shouldn't exceed 36%.

4. How are property taxes calculated?

Property taxes vary by location. The calculator estimates based on your input, but actual rates depend on local tax assessments.

5. Should I choose a 15-year or 30-year mortgage?

15-year mortgages have higher monthly payments but lower total interest. 30-year mortgages have lower payments but more total interest.

6. How much should I put down on a house?

20% down avoids PMI and reduces monthly payments, but programs exist for as little as 3% down for qualified buyers.

7. What other costs should I consider?

Consider maintenance (1-3% of home value annually), utilities, closing costs, and potential HOA fees.

8. How do interest rates affect my payment?

Higher rates increase monthly payments significantly. A 1% rate increase can add $200+ to monthly payments on a $400K loan.

9. Can PMI be removed later?

Yes, PMI can typically be removed when you reach 20% equity in your home through payments or appreciation.

10. Are these calculations accurate for all loan types?

This calculator works for conventional loans. FHA, VA, and USDA loans have different requirements and fees.