What is included in a monthly mortgage payment?

A typical monthly mortgage payment includes Principal, Interest, Taxes, and Insurance (PITI). If your down payment is less than 20%, you'll also pay PMI.

How much house can I afford on a $100,000 salary?

With $100,000 income, no debts, and 36% DTI limit, you could afford roughly a $450,000 home at current rates with 20% down.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage has higher payments but saves significantly on total interest. Choose based on your monthly budget comfort level.

What is PMI and how do I avoid it?

PMI is required when down payment is less than 20%. It costs 0.3-1.5% of loan amount annually. It cancels when LTV reaches 78%.

How do extra payments reduce my mortgage?

Extra payments go directly to principal, reducing interest. An extra $200/month on a $280K loan saves ~$71,000 in interest.

Mortgage Calculator

Estimate your monthly payment, see how much home you can afford, or find out how extra payments save you money.

Home Price

Down Payment

$20%

Interest Rate

Loan Term

Monthly Payment

$2,208

$1,816 principal & interest

Principal & Interest: $1,816

Property Tax: $292

Insurance: $100

Loan Amount

$280,000

Total Interest

$373,787

Total Cost

$653,787

LTV Ratio

80.0%

How to Use This Mortgage Calculator

This calculator has three modes designed for different stages of the home buying journey:

Monthly Payment Tab

Enter your Home Price and Down Payment to see your estimated monthly payment instantly. The calculator breaks down your payment into principal & interest, property tax, insurance, HOA fees, and PMI. Click "More options" to customize tax and insurance amounts for your area.

How Much Can I Afford Tab

Start with your Annual Gross Income and Monthly Debts. The calculator uses the debt-to-income (DTI) ratio to determine the maximum home price you can afford. Most lenders prefer a DTI of 36% or less, though some allow up to 43% for qualified borrowers.

Early Payoff Tab

Enter your Current Balance and add an Extra Monthly Payment to see how much interest you'll save and how many years sooner you'll pay off your mortgage. Even an extra $100/month can save tens of thousands in interest.

The Formula Behind Your Mortgage Payment

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:
M = Monthly payment
P = Principal (loan amount)
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (years × 12)

For a $280,000 loan at 6.75% over 30 years: monthly payment = $1,816. Of that first payment, $1,575 goes to interest and only $241 to principal. By year 15, the split reverses. The amortization schedule above shows this shift year by year.

Example: First-Time Buyer in Austin, TX

Sarah and David's Home Purchase

Combined household income: $110,000. They're looking at homes around $350,000 in the Austin metro area.

Home Price	$350,000
Down Payment (20%)	$70,000
Loan Amount	$280,000
Interest Rate	6.75% (30-year fixed)
Monthly P&I	$1,816
Property Tax	$292/mo ($3,500/yr)
Insurance	$100/mo ($1,200/yr)
Total Monthly	$2,208
Total Interest (30 yrs)	$373,760

With a DTI ratio of 28.5%, they're well within the 36% guideline. If they add $200/month in extra payments, they'd save $71,000 in interest and pay off the mortgage 6 years early.

Frequently Asked Questions

A typical monthly mortgage payment includes four components (often called PITI): Principal (the amount that reduces your loan balance), Interest (the cost of borrowing), Taxes (property taxes collected monthly and paid annually), and Insurance (homeowners insurance). If your down payment is less than 20%, you'll also pay PMI (Private Mortgage Insurance), adding 0.3%–1.5% of the loan amount annually.

With a $100,000 annual income, no other debts, and a 36% DTI limit, your maximum monthly payment would be about $3,000. At 6.75% with 20% down, that supports roughly a $450,000 home. With $500/month in existing debts, the maximum drops to about $375,000. Use the "How Much Can I Afford" tab above with your specific numbers.

A 15-year mortgage has higher monthly payments but saves significantly on total interest. For example, a $280,000 loan at 6.25% (15-year) costs $2,403/month vs. $1,816/month for a 30-year at 6.75%, but you'd save over $250,000 in total interest. Choose 15-year if the higher payment fits comfortably in your budget. Choose 30-year for lower monthly obligations, then consider making extra payments when you can.

PMI (Private Mortgage Insurance) protects the lender if you default. It's required when your down payment is less than 20% of the home price. PMI typically costs 0.3%–1.5% of the original loan amount per year. On a $280,000 loan, that's $70–$350 per month. PMI automatically cancels when your loan balance reaches 78% of the original home value. To avoid PMI: put 20% down, consider a VA loan (no PMI required), or look into lender-paid PMI options.

Extra payments go directly toward your principal balance, which reduces the interest charged in subsequent months. On a $280,000 loan at 6.75%, paying just $200 extra per month saves about $71,000 in interest and shortens the loan by about 6 years. The impact is greatest early in the loan when interest charges are highest. Use the "Early Payoff" tab above to see the exact savings for your situation.