What's included in a monthly mortgage payment?

A full payment usually includes principal, interest, property taxes, and homeowners insurance (often called PITI). If you put less than 20% down, mortgage insurance may be added too.

How is my monthly payment calculated?

Principal and interest are based on your loan amount, interest rate, and term using a standard amortization formula. Taxes and insurance are added on top and held in escrow.

How can I lower my monthly payment?

A larger down payment, a lower rate, a longer term, or shopping insurance and taxes can all reduce your payment. We'll help you find the right balance for your budget.

Monthly Payment Calculator

What might your monthly payment look like?

Adjust the details for an estimated principal, interest, taxes, and insurance payment. A starting point for planning, not a quote.

Home price$400,000

Down payment$16,250 (4%)

Putting down 20% or more usually avoids monthly mortgage insurance (PMI).

Interest rate6.50%

Loan term

Property tax rate1.10%

The yearly tax your county charges, shown as a percent of the home's price. Around 1.1% is common — an estimate is fine.

Homeowners insurance$1,800/yr

The yearly policy that protects your home. Around $1,800 is typical — you can refine this later.

Estimated monthly payment

$2,942

Principal & interest: $2,426/mo
Property taxes: $367/mo
Homeowners insurance: $150/mo
Loan amount: $383,750

This estimate excludes mortgage insurance (PMI) and HOA dues, which may apply. Your actual payment depends on credit, program, and property.

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