Free Mortgage Calculator — Monthly Payment, PITI & Amortization

Yes — it calculates your full PITI payment: principal, interest, property tax and homeowners insurance, plus HOA fees and PMI if your down payment is under 20%. That is the real monthly number, not just principal and interest.

PMI typically costs about 0.3% to 1.5% of the loan amount per year, split into monthly payments — roughly $75 to $375 a month on a $300,000 loan. The calculator estimates your PMI and shows the exact month it can be removed once you reach 20% equity.

Yes, approximately: a recast re-amortizes your remaining balance after a lump-sum payment, over the remaining term at the same rate. Enter your post-lump-sum balance as the loan amount, your remaining years as the term, and your current rate — the monthly payment shown is your recast payment.

Buying generally makes more financial sense if you plan to stay 5+ years, as appreciation and equity accumulation offset the higher initial costs. Renting is better for flexibility or in overpriced markets. Our rent vs buy tab provides a 5-year financial comparison.

PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a full monthly mortgage payment. Principal and interest repay the loan itself. Property taxes are collected monthly and held in escrow. Homeowners insurance is also escrowed and paid annually. Taxes and insurance can add $300–$1,000+ per month beyond principal and interest.

PMI (Private Mortgage Insurance) is required by most lenders when your down payment is less than 20%. It typically costs 0.5%–1.5% of the loan amount per year, adding $100–$400/month to your payment. Under the Homeowners Protection Act, lenders must automatically cancel PMI when your balance reaches 78% of the original purchase price.

A common rule is that your total housing payment (PITI) should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36% (the 28/36 rule). Use our Affordability tab — enter your income and we calculate the maximum home price based on both rules.

A larger down payment reduces your loan amount, lowers monthly payments, and eliminates PMI once you reach 20%. It also reduces total interest paid over the life of the loan. Use the calculator to compare different down payment scenarios with the slider.

Buying generally makes more financial sense if you plan to stay 5+ years, as appreciation and equity accumulation offset higher initial costs. Renting is better for flexibility or in overpriced markets. Our Rent vs Buy tab provides a simplified 5-year financial comparison including equity built and home price appreciation.