Mortgage Payment Calculator
Calculate your true monthly payment and understand the total cost of your mortgage. See exactly how much you'll pay over the life of your loan.
Private Mortgage Insurance (PMI) Information
Private Mortgage Insurance (PMI)
PMI usually ends once your loan reaches ~80% loan-to-value (22% equity).
How is PMI calculated?
Typical PMI range: 0.3%–1.5% of loan amount annually
Default rate used: 0.5% of loan amount per year (~0.042% per month)
Note: Actual PMI rates vary by lender, credit score, and loan type.
Your Monthly Payment
Total Loan Cost
What This Means For You
Principal vs Interest Over Time
Total Cost Over Time
Most people focus on the monthly payment. This shows what the loan actually costs over time.
💡 A slightly higher down payment or shorter loan term can save tens of thousands in interest.
| Payment # | Date | Payment | Principal | Interest | Balance |
|---|
Understanding Your Mortgage Payment
Your true monthly mortgage payment includes more than just principal and interest. Property taxes, insurance, HOA fees, and PMI (if applicable) all contribute to what you'll actually pay each month. This calculator helps you see the complete picture.
Why Total Cost Matters
A lower monthly payment often means paying more interest over time. A 30-year mortgage at 7% interest can result in paying nearly as much in interest as the original loan amount. Understanding this trade-off helps you make informed decisions about loan terms and extra payments.
How Extra Payments Help
Early extra payments reduce your principal balance, which means less interest accrues over the life of the loan. Even small additional payments can save thousands in interest and shorten your loan term by years.
PMI Explained
Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home price. PMI protects the lender if you default, and typically costs 0.5% to 1% of the loan amount annually. Once you reach 20% equity, you can request to have PMI removed.
Frequently Asked Questions
What's included in my monthly mortgage payment?
Your total monthly payment typically includes Principal & Interest (P&I), Property Taxes, Home Insurance, and potentially PMI and HOA fees. This is often abbreviated as PITI or PITIA.
How does loan term affect total cost?
Longer loan terms (like 30 years) have lower monthly payments but result in significantly more interest paid over time. Shorter terms (15 or 20 years) have higher monthly payments but save tens of thousands in interest.
When can I stop paying PMI?
You can request PMI removal once you reach 20% equity in your home. This can happen through regular payments, extra payments, or home value appreciation. Your lender is required to automatically cancel PMI at 22% equity.
How much can extra payments save me?
Extra payments applied to principal reduce your loan balance faster, which decreases the total interest you'll pay. Even $100-200 extra per month can save tens of thousands in interest and shorten your loan by years.
What's the difference between this and the regular mortgage calculator?
This calculator focuses on understanding your exact monthly payment and total loan cost with all fees included. The regular mortgage calculator is better for exploring different home price scenarios and affordability analysis.