Estimate your monthly payment with property taxes, homeowners insurance, and amortization — for all 50 states.
Buying a home is the largest financial decision most people will ever make. Our mortgage calculator helps you understand exactly what your monthly obligation will be — not just the principal and interest, but also property taxes (automatically estimated based on your state), homeowners insurance, and optional PMI. Enter your numbers below and get a complete payment breakdown in seconds.
⚠️ Property tax is estimated using your state's average effective rate. Actual rates vary by county and city. Insurance estimate is based on your input. These are estimates — contact a lender for an official quote.
A mortgage payment is made up of several components, often referred to as PITI: Principal, Interest, Taxes, and Insurance.
Principal is the portion of your payment that reduces your actual loan balance. In the early years of a mortgage, a very small portion of each payment goes toward principal — this is called amortization. Over time, the split gradually shifts as you owe less and less.
Interest is the cost of borrowing. It's calculated monthly on your remaining balance. On a $320,000 loan at 6.5%, your very first payment includes roughly $1,733 in interest alone.
Property taxes are levied by your local government based on your home's assessed value. They're collected monthly through escrow by your lender and paid on your behalf annually. They vary enormously by state — from 0.28% in Hawaii to over 2.4% in New Jersey.
Homeowners insurance protects your property against damage, theft, and liability. Lenders require it. Monthly escrow typically covers this alongside property taxes.
💡 Tip: Even a small extra monthly payment — say $100/month on a 30-year loan — can shave years off your payoff date and save tens of thousands in interest. Use our Loan Calculator to model extra payment scenarios.
Let's say you're buying a home in California for $450,000, putting $90,000 (20%) down, with a 6.5% interest rate on a 30-year fixed mortgage.
That total interest figure often surprises people — you end up paying more in interest than your original loan amount over 30 years. Refinancing to a 15-year term or making extra payments are two effective strategies to reduce it.
This is one of the most common questions homebuyers have. The answer depends on your financial situation and priorities.
A 30-year mortgage gives you a lower monthly payment, freeing up cash flow for other goals — investing, emergencies, or childcare. The tradeoff is significantly more interest paid over the life of the loan.
A 15-year mortgage typically comes with a lower interest rate (often 0.5–0.75% lower) and cuts your total interest cost dramatically. On a $360,000 loan, switching from 30 to 15 years can save over $200,000 in interest — but your monthly payment will be roughly 40% higher.
A practical middle ground: take the 30-year mortgage but make extra principal payments when cash flow allows. This gives you flexibility while accelerating payoff.
If your down payment is less than 20% of the purchase price, most conventional lenders will require you to pay PMI. This insurance protects the lender (not you) if you default on the loan. PMI typically costs 0.5–1.5% of the loan amount annually, added to your monthly payment.
The good news: once your loan balance drops to 80% of the original appraised value, you can request PMI cancellation. It's automatically removed at 78% under the Homeowners Protection Act.