🏠 Mortgage Calculator
Calculate your monthly mortgage payment with full PITI breakdown (Principal, Interest, Taxes, Insurance). Includes PMI, LTV, and a year-by-year amortization schedule. Based on 2026 US average rates.
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How to Calculate Your Monthly Mortgage Payment (PITI)
Purchasing a home is the largest capital acquisition most Americans make. Your monthly payment is not just loan principal and interest; it includes mandatory property taxes, insurance, and private mortgage insurance (PMI). These components combine into the industry-standard acronym PITI.
Understanding the Components of PITI
- Principal: The money that directly repays your borrowed loan balance.
- Interest: The cost charged by the lender to finance your mortgage.
- Taxes: County or municipal real estate taxes held in an escrow account.
- Insurance: Homeowners insurance policy covering structural hazards.
- PMI (Private Mortgage Insurance): Mandatory on conventional loans with down payments below 20% (LTV above 80%). Automatically cancels under federal law once your loan reaches 78% LTV.
The Standard Fixed-Rate Amortization Formula
M = Monthly Principal & Interest | P = Principal Loan Amount
r = Monthly Interest Rate (Annual Rate / 12) | n = Total Months (Years × 12)
The 28/36 Qualifying Rule
Lenders use the 28/36 debt-to-income rule to evaluate loan affordability. Your housing payment (PITI) should not exceed 28% of your gross monthly income, while your total debt obligations (housing + auto loans + student debt + minimum credit card dues) should remain below 36%.
Frequently Asked Questions (FAQs)
What is a good mortgage rate in 2026?
In 2026, the average 30-year fixed rate is ~6.8%. Borrowers with credit scores above 740 and 20%+ down payment can often qualify for rates 0.3–0.5% below average.
How much house can I afford?
Use the 28/36 rule: your monthly mortgage payment (PITI) should be no more than 28% of gross monthly income. Total debt (including car, student loans) should not exceed 36%.
What is PMI and when does it go away?
PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. It typically costs 0.5%–1% annually. PMI is automatically cancelled when your LTV ratio reaches 78% — usually in the first 7–10 years of a 30-year mortgage.
30-year vs 15-year mortgage — which is better?
A 15-year mortgage saves enormous interest — often $100,000+. But monthly payments are ~40% higher. A 30-year provides cash flow flexibility. Many financial advisors recommend a 30-year mortgage and making extra principal payments when affordable.