Enter your home price, down payment, interest rate, and loan term to calculate your full monthly PITI payment — principal, interest, property taxes, and insurance. See how each payment is split between reducing your balance and paying interest, and how the amortization changes over time.
The principal and interest (P&I) portion of a mortgage payment follows the standard amortization formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly rate (annual rate ÷ 12), and n is the total payments (years × 12). A $350,000 loan at 6.75% over 30 years produces a P&I payment of $2,270 per month. Over 360 payments, the total interest paid is $467,105 — more than the original loan amount.
PITI adds property taxes and homeowner's insurance to the base P&I figure. Property taxes vary widely by location — a 1.2% effective rate on a $400,000 home adds $400/month. Homeowner's insurance typically runs $100–200/month. If your down payment is less than 20%, lenders require private mortgage insurance (PMI), usually 0.5–1.5% of the loan amount annually, adding another $150–400/month on a typical loan.
The 15-year vs 30-year decision is the most impactful choice most buyers make. A 15-year mortgage on the same $350,000 at 6.25% runs $3,001/month — $731 more — but total interest paid drops to $190,133, a savings of $277,000 over the life of the loan. If the higher payment is affordable, the long-run cost difference is dramatic.
How much house can I afford?
The standard guideline is that your total housing costs (PITI) should not exceed 28% of gross monthly income. A household earning $8,000/month gross should keep housing costs below $2,240. Lenders also look at total debt-to-income ratio — including car loans, student loans, and credit cards — which should stay below 43% for most conventional loans.
What is PMI and when can I remove it?
Private mortgage insurance protects the lender if you default. It's required when your down payment is less than 20% of the home's value. Under federal law, you can request PMI cancellation once your loan balance reaches 80% of the original purchase price. It must be automatically terminated at 78%. Paying down principal faster or a rising home value can accelerate this.
Does making extra mortgage payments really save that much?
Substantially. On a 30-year mortgage, an extra $200/month from the start can shave 5–7 years off the payoff timeline and save tens of thousands in interest. Even one extra payment per year (making 13 instead of 12) cuts a 30-year mortgage to roughly 26 years on a typical loan. The savings come from eliminating years of compounding interest on the remaining balance.
Fixed vs. adjustable-rate mortgage — which is better right now?
In a high-rate environment, ARMs (adjustable-rate mortgages) are tempting because their initial rates are lower. But if you plan to stay in the home longer than the fixed period (typically 5–7 years), you're exposed to rate resets that could push payments up significantly. In 2026, with rates expected to ease, locking a fixed rate offers certainty. If you're confident you'll sell or refinance within 5 years, a 5/1 ARM can make sense.