Estimate your full monthly mortgage payment — principal, interest, property tax, insurance, and PMI — and see the total cost of your loan.
A monthly mortgage payment is often summarized as PITI: Principal, Interest, Taxes, and Insurance. Many lenders bundle these into a single payment and hold the tax and insurance portions in an escrow account on your behalf.
Your down payment affects the payment in two big ways. First, it reduces the loan amount, lowering principal and interest. Second, putting down at least 20% lets you avoid PMI entirely — which this calculator estimates at roughly 0.5% of the loan per year when your down payment is below that threshold. On a $350,000 home, the difference between 10% and 20% down can be over $150 a month in PMI alone.
A 30-year mortgage has lower monthly payments but costs far more in total interest than a 15-year loan. For example, $280,000 at 6.5% costs about $1,770/month over 30 years (roughly $357,000 in interest) versus about $2,440/month over 15 years (roughly $159,000 in interest). The shorter term saves nearly $200,000 in interest despite the higher monthly payment.
The principal and interest portion uses the amortization formula based on loan amount, interest rate, and term. Property tax, insurance, and PMI are added on top to give your full monthly payment.
Private mortgage insurance protects the lender and is typically required when your down payment is less than 20% of the home price. It's usually 0.3–1.5% of the loan amount per year and can be removed once you reach 20% equity.
Twenty percent is the classic target because it avoids PMI and lowers your payment, but many loans allow far less. A larger down payment means lower monthly costs and less interest over the life of the loan.
A 15-year loan saves enormously on total interest but has higher monthly payments. A 30-year loan is more affordable month to month but costs much more overall. The right choice depends on your budget and goals.