Mortgage calculator
Principal, interest, taxes, insurance, PMI and HOA — the payment you will actually make.
Applies above 80% LTV
$2,075.51 principal & interest, plus $491.67 in taxes, insurance
80% loan-to-value
20% or more down
How it works
The payment people quote is “P&I” — principal and interest. The payment you actually make is PITI: principal, interest, taxes and insurance, plus PMI and any HOA dues. On a typical US purchase the extras add 20–30% on top of the loan payment, which is why affordability calculations based on P&I alone mislead.
P&I = L · i / (1 − (1 + i)^−n)
PITI = P&I + property tax/12 + insurance/12 + PMI + HOA The term is the biggest lever
A 15-year mortgage has a much higher payment but dramatically less total interest, because interest accrues for half as long on a balance that falls twice as fast. Compare the total interest figure above across terms — the difference is often larger than the down payment.
Down payment does two things at once
It reduces the amount borrowed, and past 20% it removes PMI entirely. Between 15% and 20% down, the effective return on the extra cash is unusually high for that reason alone.
What this does not include
Closing costs, points, origination fees, escrow shortfalls, maintenance, and any tax deduction you may be entitled to. Property tax rates vary enormously by locality — check your county assessor rather than trusting a national average.