Loan calculator, 2 of 5
Mortgage payment calculator
The loan payment is only part of the monthly bill. Add the property tax, homeowners insurance, mortgage insurance and HOA dues you expect, and see the whole amount.
Estimated monthly payment
$2,950.44 a month
PMI of $150.00 a month is included while the loan is above 80% of the price: about 109 payments (9 years 1 month), $16,350 in all.
- Principal & interest$2,275.44
- Property tax$400.00
- Homeowners insurance$125.00
- PMI$150.00
- Total each month$2,950.44
- Loan amount
- $360,00090.0% of the price
- Down payment
- $40,00010.0% of the price
- Interest over the loan
- $459,16430 years at 6.500%
Month, year and whole loan
| Item | Monthly | First year | Over 30 years |
|---|---|---|---|
| Principal & interest | $2,275.44 | $27,305.28 | $819,164.00 |
| Property tax | $400.00 | $4,800.00 | $144,000.00 |
| Homeowners insurance | $125.00 | $1,500.00 | $45,000.00 |
| PMI | $150.00 | $1,800.00 | $16,350.00 |
| HOA dues | $0.00 | $0.00 | $0.00 |
| Total | $2,950.44 | $35,405.28 | $1,024,514.00 |
Tax, insurance and HOA dues are held at today's figures; in reality they change over time and your escrow payment changes with them.
Educational use only — not financial advice. An estimate from your own figures, not a quote. Lenders, tax offices and insurers set the real amounts.
What goes into the monthly payment
Principal and interest come from the loan formula, M = P × r ÷ (1 − (1 + r)−n), on the price minus the down payment. Many lenders also collect property tax and homeowners insurance each month into an escrow account and pay those bills for you, so a twelfth of each yearly bill is added. HOA dues are usually paid to the association directly, but they are part of the monthly cost of the home.
Private mortgage insurance (PMI) is usually required on a conventional loan when the down payment is under 20% of the price. It protects the lender, not you. Here it is a yearly percentage of the original loan, charged until the balance is scheduled to fall to 78% of the price (or the loan's midpoint, if sooner), which is when the CFPB says servicers must end it automatically.
Worked example: a $400,000 home with 10% down is a $360,000 loan. At 6.5% over 30 years the principal and interest is $2,275.44. Adding $400 of tax, $125 of insurance and $150 of PMI (0.5% a year) gives $2,950.44 a month, with PMI for about 109 payments.
Sources
- Consumer Financial Protection Bureau, What is an escrow or impound account?
- Consumer Financial Protection Bureau, What is private mortgage insurance?
- Consumer Financial Protection Bureau, When can I remove private mortgage insurance (PMI) from my loan?: requesting removal at 80%, automatic termination at 78% and final termination at the midpoint.
Questions
Where do I find my real tax and insurance figures?
Your Loan Estimate lists estimated taxes, insurance and escrow. For a home you are considering, the current property tax bill is often public, and an insurance quote gives the premium. Both can change from year to year.
Can I get PMI removed earlier?
The CFPB explains that you can ask your servicer to cancel PMI once the balance reaches 80% of the home's original value, including by making extra payments, as long as you meet the requirements. The automatic cutoff at 78% is what this calculator shows.
Why is the down payment shown as a percent and in dollars?
PMI depends on the share of the price you put down, while your budget depends on the dollars. Switch the unit next to the down payment to type it either way; both are shown in the result.