Mortgage Payment Calculator

What is included in a mortgage payment?

A full mortgage payment (PITI) includes: Principal (repaying the loan balance), Interest (cost of borrowing), Taxes (property taxes, usually escrowed), and Insurance (homeowner's insurance, plus PMI if down payment is under 20%).

How much house can I afford?

A common rule is that your housing costs should not exceed 28% of your gross monthly income. For example, if you earn $8,000/month, aim for a total mortgage payment under $2,240. Lenders also look at your total debt-to-income ratio (all debts), which should ideally be under 43%.

Is a 15-year or 30-year mortgage better?

A 15-year mortgage has higher monthly payments but significantly lower total interest paid (often 50% less). A 30-year mortgage has lower monthly payments, providing more cash flow flexibility. If you can comfortably afford the higher payment, a 15-year mortgage saves more money long-term.

What is PMI and how do I avoid it?

PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. It typically costs 0.5%–1.5% of the loan amount annually. To avoid PMI: put 20% down, use a piggyback loan (80-10-10), or choose a lender-paid PMI option (usually means a slightly higher rate).