How your mortgage payment is built
A typical monthly mortgage payment has four parts, often called PITI: principal, interest, property taxes and homeowners insurance. This calculator estimates all four so you can see the real monthly cost of a home, not only the loan repayment.
Principal and interest
The loan amount is the home price minus your down payment. The payment is computed with the standard amortization formula: P × r ÷ (1 − (1 + r)−n), where r is the monthly rate and n the number of payments.
Ways to lower your payment
- Increase your down payment.
- Compare offers from several lenders.
- Improve your credit score before applying.
- Choose a longer term (lower payment, but more total interest).
- Make extra payments toward the principal when you can.
Good to know
Your actual payment may also include mortgage insurance, HOA fees or a variable rate. Treat the result as an estimate and confirm details with your lender.
Frequently asked questions
What is PITI?
PITI stands for principal, interest, taxes and insurance, the four main parts of a monthly mortgage payment.
How much should I put down?
Many lenders ask for 5–20%. A larger down payment reduces your monthly payment and total interest.
Is this a loan offer?
No. It is an estimation tool and does not represent an offer from any lender.