Guide
Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI. See your full amortization schedule and understand how much of each payment goes to interest vs building home equity.
What Goes Into Your Monthly Payment
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of most monthly mortgage payments. PMI (private mortgage insurance) applies when your down payment is less than 20%.
Early in a 30-year loan, most of each payment goes to interest. Over time, more goes to principal. Extra principal payments in the first 5–10 years save the most total interest.
How Down Payment Affects Your Loan
A 20% down payment eliminates PMI and reduces your loan amount, lowering both monthly payment and total interest. However, putting every dollar into a down payment is not always optimal if you have high-interest debt or lack an emergency fund.
Compare renting vs buying with our rent vs buy calculator if you are unsure whether homeownership makes financial sense in your market.
Key Takeaways
- Include taxes, insurance, and PMI for an accurate monthly estimate.
- Extra principal payments early in the loan save the most interest.
- A 20% down payment avoids PMI on conventional loans.
- Compare total cost over your expected years in the home, not just rate.