Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, PMI, taxes, and insurance. See your complete amortization schedule.
Mortgage Calculator
Calculate your monthly mortgage payment including PMI, taxes, and insurance
Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]Where M = Monthly payment, P = Principal, r = Monthly interest rate, n = Number of payments
How to Use
- 1Enter home price — Input the purchase price of the home you're considering.
- 2Set down payment — Enter your down payment. 20% avoids PMI.
- 3Choose loan term — Select 15 or 30 years for your mortgage.
- 4Enter interest rate — Input the annual interest rate from your lender.
- 5Add taxes & insurance — Enter annual property tax and insurance amounts.
- 6Review results — See your monthly payment breakdown and amortization schedule.
Frequently Asked Questions
What is PMI and when is it required?
Private Mortgage Insurance (PMI) protects the lender if you default. It's required when your down payment is less than 20%. PMI typically costs 0.5-1% of the loan annually.
How is the monthly payment calculated?
Monthly payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly rate, and n is total payments. Taxes, insurance, and PMI are added separately.
Should I choose 15 or 30 years?
15-year mortgages have higher payments but lower total interest. 30-year mortgages have lower payments but higher total interest. Choose based on your budget.
How can I remove PMI?
Request PMI removal at 20% equity. Lenders must cancel it at 22% equity. You can reach this through payments or home value appreciation.