See what a home really costs each month, including taxes, insurance and PMI.
| Year | Principal paid | Interest paid | Remaining balance |
|---|
The principal-and-interest part uses the standard fixed-rate loan payment formula, where P is the loan amount, r is the yearly rate divided by 12, and n is the number of monthly payments:
Property tax and insurance are divided by 12 and added on, along with HOA dues. PMI is estimated as the yearly PMI rate times the loan amount, divided by 12, and only while the balance is above 80% of the home price, which is when you can typically ask your lender to remove it.
What is included in a monthly mortgage payment?
Most payments cover four things: principal (paying down the loan), interest, property tax and homeowners insurance. Many lenders collect the tax and insurance into an escrow account. If you put down less than 20% you may also pay PMI, and some neighborhoods add HOA dues.
How much does a bigger down payment save?
A bigger down payment shrinks the loan, which lowers both the monthly payment and the total interest you pay over the life of the loan. Reaching 20% down also usually removes the need for PMI. Try changing the down payment field to compare.
Why is so much of my early payment interest?
Interest is charged on the remaining balance, which is highest at the start. As the balance falls, the interest portion shrinks and more of each payment goes toward principal. The schedule above shows this shift year by year.
Is this an official loan quote?
No. It's an estimate based on the numbers you enter. Your actual rate, fees, tax and insurance costs depend on your lender, location and credit, so use it for planning and compare with an official Loan Estimate from a lender.