What's actually in this number
A mortgage quote that only shows principal and interest is showing you part of the picture. This calculator adds the other recurring pieces — property tax, homeowners insurance, PMI when it applies, and HOA fees if you have them — so the figure you see matches what actually leaves your bank account every month.
A worked example
A $350,000 home with $70,000 down (20%) at 6.5% over 30 years gives a principal-and-interest payment of roughly $1,770. Add typical property tax and insurance and the real monthly number lands closer to $2,180. Drop the down payment to 10% in the calculator above and watch PMI appear — that's the trade-off a smaller down payment actually costs.
Frequently asked questions
Why is my total payment higher than just principal and interest?
Most lenders collect property tax and homeowners insurance alongside your loan payment, holding the money in an escrow account and paying those bills on your behalf when they're due. If your down payment is under 20%, PMI gets added on top too. All of that combined is your real monthly cost — which is what this calculator shows by default.
What is PMI and when does it go away?
Private Mortgage Insurance protects the lender, not you, when your loan-to-value (LTV) ratio is above 80% — meaning you put down less than 20%. It's typically removed automatically once your loan balance drops to 78% of the home's original value, or you can request removal at 80%.
How much should I put down?
20% avoids PMI entirely and lowers your monthly payment, but it isn't a requirement — many loan programs accept far less down. Try both scenarios in the calculator above: a smaller down payment with PMI versus a larger one without, and compare the actual monthly difference.
Does this include closing costs?
No — closing costs (typically 2-5% of the loan amount) are a separate, one-time expense paid at signing, not part of the recurring monthly payment this calculator estimates.
Is the interest rate I should use the same as my lender's quoted rate?
Use the actual rate from your loan estimate for the most accurate number. Rates shift with credit score, loan type and market conditions, so a pre-approval letter will always be more precise than any online estimate.
This calculator provides estimates for general informational purposes only and is not financial advice. Actual rates, taxes, insurance premiums and PMI terms are set by your lender and local authority — confirm final numbers with your loan estimate before making a decision.