Mortgage Calculator 2026 • Monthly Payment, PITI & Amortization

A general rule is that your monthly mortgage payment should not exceed 28% of your gross monthly income (the 28/36 rule). For example, if you earn $6,000/month, aim to keep your payment under $1,680. Our calculator helps you test different scenarios.

Your monthly payment typically includes PITI: Principal (loan balance), Interest (cost of borrowing), Taxes (property taxes), and Insurance (homeowners). Some payments also include HOA fees and PMI if your down payment is under 20%.

A larger down payment reduces your loan amount, which lowers your monthly payment and total interest cost. Put down 20% to avoid PMI (Private Mortgage Insurance), which typically costs 0.5-1% of your loan annually.

Conventional loans typically require 620+, FHA loans accept 580+ (or 500 with 10% down), VA loans have no minimum but lenders prefer 620+. A score of 740+ gets you the best interest rates, potentially saving tens of thousands over the loan term.

The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate PLUS fees like origination costs, points, and mortgage insurance—giving you the true cost of the loan. Always compare APRs, not just rates.

A 15-year mortgage has higher monthly payments but saves 50-60% on total interest and builds equity faster. A 30-year offers lower payments and more flexibility. Choose 15-year if you can afford it; choose 30-year if you need cash flow or plan to invest the difference.

Consider refinancing when rates drop 0.75-1% below your current rate, you can recoup closing costs within 2-3 years of staying in the home, or you want to switch from ARM to fixed-rate. Use our calculator to compare your current payment to potential new payment.

Closing costs are fees paid when finalizing your mortgage—typically 2-5% of the loan amount. They include appraisal ($300-600), title insurance ($500-1,500), origination fees (0.5-1% of loan), and prepaid taxes/insurance. On a $300K loan, expect $6,000-15,000.

PMI often adds about 0.5% to 1% of the loan amount per year, divided into monthly payments. On a $300,000 loan, that can mean roughly $125 to $250 per month until you reach the required equity threshold.

A full mortgage payment usually includes principal, interest, property taxes, homeowners insurance, and sometimes PMI and HOA dues. This is why the true house payment is often much higher than principal and interest alone.

The interest rate is the base borrowing cost. APR includes the interest rate plus lender fees, points, and some mortgage insurance costs, so it is usually better for comparing loan offers.

One missed payment can trigger late fees and put your loan at risk of delinquency if the issue continues. Contact your servicer early, ask about payment help or forbearance, and do not wait for a foreclosure notice.