Estimate your Monthly Payments
Understanding Your Payment
You can use the sample rates above to estimate your total monthly mortgage payment, including the loan principal & interest, taxes, and insurance (PITI).
- The principal balance is the original amount of the loan itself.
- Interest is the price you pay the lender for borrowing money.
- Real estate or property taxes are assessed each year by local governments and used to fund public services.
- Insurance premiums are usually also included in the mortgage payment. This may include homeowners insurance, which protects the home and its contents from fire, theft, and other disasters; and private mortgage insurance (PMI), which is usually mandatory for people who have a down payment of less than 20%.
In the early years of the loan, your mortgage payments mostly cover the interest (and little of the principal amount you borrowed). Over the years, that ratio gradually shifts and you start to pay down more of the principal balance.
Note: Generally, mortgage lenders prefer the PITI to be equal to or less than 28% of a borrower’s gross monthly income.
*Disclaimer: The calculations derived from this mortgage calculator are for illustrative purposes only. Actual loan interest rates and payments are based on many factors including market conditions, points, loan amount, loan-to-value, borrower’s credit, property type and location and occupancy, the loan-to-value ratio, etc. There are no assurances that a purchaser will qualify for any loan or financing. Forecasts, projections and other predictive statements should never be relied upon as financial or legal advice.