What goes into a monthly mortgage payment?
Your payment is usually more than the loan itself. Lenders often call it PITI: principal, interest, taxes and insurance. Some homes add PMI or HOA dues on top.
Principal and interest
This part stays the same for the whole loan on a fixed-rate mortgage. Early on, most of it goes to interest. Over time, more of each payment goes to the balance.
Property tax, insurance, PMI and HOA
Property tax and home insurance are often paid through your lender each month. PMI (private mortgage insurance) is usually added when you put down less than 20%, and it can often be removed later. HOA dues are paid to your homeowners association.
A worked example
Say you buy a $375,000 home with 20% down ($75,000), so you borrow $300,000 at 6.5% for 30 years.
- Principal and interest come to about $1,896 a month.
- Add $4,500 a year in property tax and $1,800 for insurance, and the payment is about $2,421 a month.
- Over 30 years you'd pay about $382,600 in interest.
- Paying an extra $200 a month would finish the loan almost 7 years sooner and save about $103,000 in interest.
The same loan over 15 years is about $2,613 a month before taxes, but the interest drops to about $170,000.
How this mortgage calculator works
It uses the standard fixed-rate formula, then adds a twelfth of your yearly tax and insurance plus any monthly PMI and HOA. Open the year-by-year schedule to see how much interest and principal you'd pay each year. These are estimates. Your lender's quote, closing costs and escrow can differ, so use it to plan, not as a promise.
Ways to lower your payment
- A bigger down payment means a smaller loan, and 20% usually avoids PMI.
- Compare rates from a few lenders. Even half a percent adds up.
- Shop around for home insurance each year.
Buying a car too? Try the car payment calculator to see how both fit your budget.
Questions people ask
Does this include taxes and insurance?
Yes, if you add them. Enter your yearly property tax and home insurance, plus any monthly PMI or HOA, and they're added to your principal and interest.
How much should I put down?
There's no single right answer. 20% usually avoids PMI and lowers your payment, but many loans allow less. Keep some savings for moving costs and repairs too.
Is the rate the same as the APR?
Not quite. The APR includes some lender fees, so it's often a little higher. For a payment estimate, use the interest rate from your quote.
Are my numbers saved?
Yes. Everything you type saves automatically in this browser, so it’s here next time, and nothing is sent anywhere. Private windows and clearing your browsing data don’t keep it, so tap Save or print: Save a copy downloads a small file you can open later, or on another device, with Open a saved copy, and Print / Save as PDF gives you a copy to keep.