Mortgage Calculator

Frequently asked questions

What is PITI?

PITI stands for Principal, Interest, Taxes, and Insurance. It is the four-component total that most lenders use to evaluate whether a monthly mortgage payment fits a borrower's budget. Our calculator also adds HOA dues and PMI when applicable so you see the full housing cost.

When do I need to pay PMI?

Private Mortgage Insurance is typically required when your down payment is less than 20% of the home price on a conventional loan. PMI automatically ends (by federal law) when the loan balance reaches 78% of the original home value, or you can request cancellation at 80%.

How is the monthly principal and interest calculated?

We use the standard amortization formula: M = P * r * (1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments. Property tax, insurance, HOA, and PMI are added on top.

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

A 30-year loan has lower monthly payments but significantly more total interest. A 15-year loan has higher monthly payments but you pay off the home faster and save a large amount in interest. Try both terms in the calculator to compare total cost.

Does this calculator include property taxes and insurance?

Yes. You can enter annual property tax and home insurance amounts, and the calculator divides them into monthly figures that are added to your PITI payment. HOA dues are entered as a monthly amount.

Are the results accurate enough to make a decision?

This calculator provides a reliable estimate for planning purposes, but actual loan costs depend on your lender's fees, insurance quotes, exact tax assessments, and credit profile. Always confirm numbers with a licensed loan officer before committing.