Buying a home
Mortgage Calculator
The payment is more than the loan
Most mortgage calculators quote only principal and interest, then buyers are surprised at closing. The real monthly cost, often called PITI, adds property tax and home insurance, and PMI too if you put down less than 20%. Those extras can add several hundred dollars a month. Property tax alone varies a lot by area, so treat the tax and insurance figures here as starting points and replace them with real quotes for your home.
Estimates use about 1.1% of the price for property tax, $1,500 a year for insurance, and 0.6% of the loan for PMI. Adjust for your own numbers. Not financial advice.
Common questions
What is the payment on a $400,000 mortgage?
At 6.5% over 30 years with 20% down, principal and interest are about $2,023. With tax and insurance the real payment is closer to $2,514.
What is PMI?
Private mortgage insurance, usually required when you put down less than 20%. It is dropped once you build enough equity, and runs roughly 0.5% to 1% of the loan a year.