Mortgage Calculator
Comprehensive House Payment & Escrow Estimator
Total Estimated Monthly Payment
$2,592.18
Includes P&I, Property Taxes, Insurance & HOA
Principal & Interest:
$2,075.51
Property Taxes:
$400.00
Home Insurance:
$116.67
PMI:
$0.00
How Mortgage Payments are Structured (PITI)
Your monthly mortgage check is typically divided into four main parts known by the acronym PITI:
1. Principal
The portion of payment applied directly to paying off the original home loan balance.
2. Interest
The fee charged by your bank or mortgage lender for borrowing the capital.
3. Taxes
Local real estate/property taxes assessed by municipal and county authorities.
4. Insurance
Hazard homeowners insurance plus Private Mortgage Insurance (PMI) if down payment is < 20%.
Frequently Asked Questions
A standard mortgage payment consists of PITI: Principal (loan balance repayment), Interest (lender charge), Taxes (county/city property taxes), and Insurance (homeowners hazard insurance and PMI if applicable).
PMI is required by conventional lenders if your down payment is less than 20% of the home purchase price. It protects the lender in case of default and usually costs between 0.3% and 1.5% of the original loan amount per year.
A 30-year mortgage offers lower, more manageable monthly payments, giving you financial flexibility. A 15-year mortgage comes with higher monthly payments but has lower interest rates and saves tens of thousands of dollars in total interest.
Property taxes are assessed by your local county/city government (typically 0.8% to 2.5% of home value annually). Most lenders collect 1/12th of this amount each month in an escrow account to pay on your behalf.
Verified Banking Logic
Calculations match US Fannie Mae, Freddie Mac, and Federal Reserve standard mortgage escrow guidelines.