The real monthly cost of a home
A mortgage payment is more than principal and interest. This calculator adds the pieces that actually hit your bank account each month — property tax, home insurance, and PMI when your down payment is under 20% — to show your full PITI payment. That's the number lenders use to judge affordability, and the one you should budget around.
How it's calculated
PMI is estimated at about 0.5% of the loan per year and is only applied when your down payment is below 20%. It falls away as you build equity, which is why a larger down payment lowers your payment in two ways at once.
Ways to lower the payment
- Bigger down payment — shrinks the loan and can eliminate PMI entirely.
- Lower rate — shop lenders; even a fraction of a percent adds up over 30 years.
- Longer term — reduces the monthly payment but increases total interest.
Estimates only. Actual property tax, insurance and PMI vary by location and lender, and this doesn't include HOA dues or closing costs. Confirm exact figures with your lender.
Frequently asked questions
What does PITI mean?
PITI stands for principal, interest, taxes and insurance — the four parts of a typical monthly mortgage payment. Lenders look at your full PITI, not just principal and interest, when deciding what you can afford.
What is PMI and when do I pay it?
Private mortgage insurance (PMI) is usually required when your down payment is under 20 percent, because the lender is taking on more risk. It is added to your monthly payment and typically drops off once you reach about 20 percent equity.
How much should my down payment be?
A 20 percent down payment avoids PMI and lowers your monthly payment, but many loans allow much less. A larger down payment reduces both the loan amount and the interest you pay over the life of the mortgage.