What is PMI and when do I need it?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It typically costs 0.5% to 1.5% of the loan amount annually. PMI is automatically removed once you reach 20% equity through regular payments, or you can request removal at 80% loan-to-value.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage has higher monthly payments but saves significantly on total interest — often $100,000+ on a typical loan. A 30-year mortgage has lower payments, giving you more cash flow flexibility. Choose 15 years if you can afford the higher payment and want to build equity faster; choose 30 years if you need lower payments or want to invest the difference.

How much house can I afford?

Financial advisors recommend spending no more than 28% of your gross monthly income on total housing costs (mortgage, tax, insurance). Use this calculator with your target monthly budget to find the maximum home price that fits within that guideline.

How do extra payments affect my mortgage?

Extra payments go directly toward reducing the principal balance. Since interest is calculated on the remaining balance, every extra dollar reduces the interest on all future payments. On a $300,000 mortgage, adding $200/month in extra payments can save over $50,000 in interest and cut 5-6 years off the term.

Does this calculator account for property tax increases?

The calculator uses the property tax rate you enter as a fixed annual amount. In reality, property taxes can increase over time. For a more conservative estimate, you may want to use a slightly higher tax amount to account for potential increases.

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Mortgage Calculator

A mortgage calculator computes your monthly payment including principal, interest, property tax, insurance, and PMI. Enter the home price, down payment, interest rate, and term to see the total monthly cost, full amortization schedule, and the impact of extra payments.

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What is Mortgage Calculator?

A mortgage calculator is a browser-based tool that computes monthly mortgage payments and amortization schedules, including property tax, homeowner's insurance, and PMI, helping homebuyers understand the true cost of homeownership before committing.

Complementary Tools

These tools work great alongside Mortgage Calculator:

Loan & Mortgage Calculator Compound Interest Calculator

Start Using Mortgage Calculator Today

A mortgage is the largest financial commitment most people will ever make, and the monthly payment is only the beginning. This calculator shows you the true cost — including tax, insurance, and PMI — with a full amortization schedule that reveals how extra payments save years and tens of thousands of dollars. Know the numbers before you sign.

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