Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI. Compare loan options and view detailed amortization schedules.
| Payment # | Date | Payment | Principal | Interest | Total Interest | Balance |
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Avoiding PMI saves $100-300/month. Even if it takes longer to save, the long-term savings are substantial.
A score of 760+ gets the best rates. Even a 0.5% rate difference saves tens of thousands over 30 years.
Get quotes from at least 3-5 lenders. Compare APR, not just interest rate, to see true costs.
If you can afford higher payments, a 15-year mortgage saves massive interest and builds equity faster.
Even $100/month extra toward principal can cut years off your mortgage and save thousands in interest.
Budget 2-5% of home price for closing costs including appraisal, title, attorney, and origination fees.
Private Mortgage Insurance (PMI) protects the lender if you default. It's required for conventional loans with less than 20% down payment. PMI typically costs 0.3-1.5% of the loan amount annually. You can request removal once you have 20% equity.
PITI stands for Principal (paying down loan balance), Interest (cost of borrowing), Taxes (property tax held in escrow), and Insurance (homeowners insurance). Some payments also include PMI and HOA fees.
30-year: Lower monthly payments, more flexibility, but more total interest. 15-year: Higher payments, but lower rates, faster equity building, and huge interest savings. Choose 30-year if you need cash flow; 15-year if you can afford it.
Conventional: 620+ (best rates at 740+). FHA: 580+ for 3.5% down, 500-579 for 10% down. VA: No minimum, but 620+ preferred. The higher your score, the better your rate and terms.
Interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate PLUS other costs like points, fees, and PMI. APR gives a more complete picture of total loan cost.
A common guideline: housing costs should be ≤28% of gross monthly income (front-end ratio), and total debt payments ≤36% (back-end ratio). Lenders may approve more, but staying within these limits keeps you financially comfortable.
One point costs 1% of the loan and typically reduces rate by 0.25%. Calculate the break-even point: divide point cost by monthly savings. If you'll stay longer than break-even, points make sense.
Pre-qualification is a quick estimate based on self-reported info. Pre-approval involves full credit check and income verification—it's a conditional commitment and carries more weight with sellers.