How to use the Mortgage Calculator
- Enter the home price and your down payment.
- Add your interest rate and loan term.
- Fill in property tax, insurance and HOA for a realistic total.
- Your monthly payment and total interest update instantly.
About this tool
Your real monthly housing cost is more than the loan payment. Lenders usually collect PITI — Principal, Interest, Taxes and Insurance — plus private mortgage insurance (PMI) if you put down less than 20%, and HOA dues if you live in a managed community.
How the payment is calculated
The principal-and-interest part uses the standard amortization formula: M = P × r / (1 − (1 + r)−n), where P is the loan amount, r the monthly rate and n the number of monthly payments.
Ways to lower your payment
- Put 20% down to avoid PMI.
- Improve your credit score to qualify for a lower rate.
- Compare a 30-year and 15-year loan — the 15-year costs more monthly but far less interest overall.
- Shop around for homeowners insurance.
Frequently asked questions
What is a good down payment?
20% avoids PMI, but many loans allow 3–5% down (FHA 3.5%). A smaller down payment means a bigger loan and higher monthly cost.
What property tax rate should I use?
US rates range from about 0.3% to over 2% of home value per year. The national average is roughly 1%. Check your county’s rate for accuracy.
When does PMI go away?
On conventional loans, PMI usually ends automatically once you reach 22% equity, and you can request removal at 20%.
Is this calculator accurate?
It gives a reliable estimate. Your lender’s Loan Estimate will show exact figures including fees.