Mortgage
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The real monthly cost of a home isn't just the loan — it's principal, interest, property tax and insurance together. Enter the price and terms and see the whole payment, live.
What a mortgage payment is made of
Lenders call it PITI: Principal, Interest, Taxes, Insurance. The first two repay the loan on the standard amortization formula; the last two are yearly costs collected monthly, often via escrow. All four land in one payment.
Worked example
P&I ≈ $2,022.62/mo · tax+insurance ≈ $533/mo
Full payment ≈ $2,556/mo · lifetime interest ≈ $408k
What moves the number
Rate and term dominate. Each extra percentage point on a $320k loan adds roughly $210 a month; stretching 15 to 30 years roughly halves the payment but more than doubles lifetime interest. A down payment under 20% usually adds PMI (mortgage insurance) — often 0.5–1% of the loan yearly — which this estimate doesn't include, along with HOA fees. For the raw amortization on any loan, see the loan calculator.
Mortgage FAQ
Principal and interest use the amortization formula on the loan amount (price minus down payment), monthly rate and number of months. Property tax and home insurance are yearly costs divided by 12 and added on.
A common lender guide is the 28/36 rule: housing costs under 28% of gross monthly income, all debts under 36%. On an $8,000 gross month that's roughly a $2,240 housing budget.
Private mortgage insurance, usually required below 20% down, typically 0.5–1% of the loan per year. It isn't included in this estimate, so add it if your down payment is under 20%.
A 15-year costs more per month but far less in lifetime interest and builds equity faster; a 30-year keeps payments manageable and flexible. Run both terms above and compare the total-interest line.