Mortgage Calculator 2026 — Full PITI, Extra Payments, Schedule
Calculate your complete monthly mortgage payment including principal, interest, property tax, insurance, PMI, HOA — plus model extra payments and see exactly how many years and dollars you save.
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
How a Mortgage Calculator Works
A US mortgage payment is the sum of four-to-five components — collectively known as PITI (Principal, Interest, Taxes, Insurance), plus PMI if your down payment is below 20% and HOA fees if your property has a homeowners association. This calculator computes each component separately so you can see exactly where your money goes each month.
The principal and interest portion is computed using the standard amortization formula — the same math every US lender uses. Property tax and insurance are estimated as fixed monthly amounts (most lenders escrow these into your payment). PMI is computed as a percentage of the loan amount and automatically removed when your loan-to-value ratio reaches 78%, per the federal Homeowners Protection Act.
The Amortization Formula
M— monthly principal & interest paymentP— loan principal (home price minus down payment)r— monthly interest rate (annual rate ÷ 12)n— total number of monthly payments (years × 12)
For example: a $320,000 loan at 6.5% annual for 30 years gives r = 0.005417, n = 360, and M ≈ $2,023.26 per month in principal and interest. Add property tax, insurance, PMI, and HOA on top to get your total monthly payment.
Worked Example — Sarah & Dave's $450,000 Home
Over 30 years, total interest ≈ $540,000. Total cost of home (principal + interest + taxes + insurance) ≈ $1.16 million.
Extra Payments — How Much Can You Save?
Extra principal payments dramatically reduce the total interest you pay because they shrink the balance on which interest is calculated. The earlier in the loan you make extras, the bigger the savings — front-loaded principal payments are mathematically the most efficient.
| Strategy | Interest paid | Years to payoff | Saved |
|---|---|---|---|
| Standard $300,000 @ 6.5% / 30 yr | $382,633 | 30 | — |
| +$100 / month extra | $337,250 | ~26.6 | $45,383 |
| +$200 / month extra | $304,933 | ~23.9 | $77,700 |
| +$500 / month extra | $240,128 | ~18.4 | $142,505 |
| Biweekly (13 monthly per year) | $326,113 | ~25.7 | $56,520 |
Use the "Extra Monthly Payment" and "One-Time Lump Payment" inputs in the advanced section to model your own scenario. The result panel will show the interest saved and how many years sooner the loan is paid off.
Historical US Mortgage Rates (Freddie Mac PMMS)
Source: Freddie Mac Primary Mortgage Market Survey (PMMS). The 30-year fixed rate has averaged about 7.7% over the full 1971–today period, peaked at 18.6% in October 1981, and reached an all-time low of 2.65% in January 2021.
| Period | Avg 30-yr fixed | Notes |
|---|---|---|
| 1971–1980 | ~9.2% | Inflation rising, ending at 13.7% |
| 1981–1990 | ~12.9% | Volcker peak (18.6% in Oct 1981) |
| 1991–2000 | ~7.9% | Disinflation, ending at 8.1% |
| 2001–2010 | ~6.3% | Housing bubble + GFC; ending at 4.7% |
| 2011–2020 | ~3.9% | Lowest decade in modern history |
| 2021 | ~2.96% | All-time low 2.65% in Jan |
| 2022 | ~5.34% | Fed tightening cycle begins |
| 2023 | ~6.81% | Peak ~7.79% in Oct |
| 2024 | ~6.72% | Stabilizing |
| 2025 | ~6.50% (est) | Fed easing cycle begins |
Source: Freddie Mac PMMS weekly survey 1971–present, https://www.freddiemac.com/pmms. Annual averages computed from weekly data.
Loan Product Comparison
Different US mortgage programs have different requirements. The right choice depends on your credit, down payment, military status, and property location.
| Loan | Min down | Min FICO | PMI / MIP | Best for |
|---|---|---|---|---|
| Conventional | 3% (FTHB) / 5% | 620 | PMI if <20% down; auto-drops at 78% LTV | Most buyers with decent credit |
| FHA | 3.5% (FICO 580+) / 10% (500–579) | 500 | UFMIP 1.75% + annual MIP 0.55%/0.85%; lasts loan life unless 10%+ down | Lower credit / first-time buyers |
| VA | 0% | ~580 (lender) | No PMI; funding fee 1.25–3.3% (waivable) | Veterans, active-duty, eligible spouses |
| USDA | 0% | ~640 (lender) | Upfront 1% + annual 0.35% guarantee fee | Rural / low-to-moderate income buyers |
| Jumbo | 10–20% | 700+ | Lender-defined; varies | High-cost areas, loans above $806,500 (2025 conforming limit) |
Sources: HUD FHA Handbook 4000.1, VA Lenders Handbook M26-7, USDA Rural Development, FHFA conforming loan limits.
Closing Costs — The 2–5% Rule
Closing costs typically run 2–5% of the loan amount, paid at the closing table. On a $400,000 loan, expect $8,000–$20,000. Major line items include:
- Loan origination — 0.5–1% of the loan, paid to the lender for processing.
- Appraisal — $400–700, paid to the appraiser to verify the home's market value.
- Title insurance — 0.5–1% of the loan, protects the lender (and optionally you) against title defects.
- Credit report — $30–50.
- Recording fees — $100–250, paid to the county to record the mortgage.
- Prepaid property taxes — typically 2–6 months of taxes held in escrow.
- Prepaid homeowners insurance — 12 months of premiums paid up front.
- Discount points (optional) — 1% of loan principal each, lowers interest rate by ~0.25%.
The CFPB Loan Estimate form, required by federal law within 3 days of application, breaks all of these out clearly so you can shop offers apples-to-apples.
Affordability Rules of Thumb
Your monthly housing costs (PITI + HOA) should not exceed 28% of gross monthly income, and your total monthly debt (housing + auto + student loans + credit cards) should not exceed 36% of gross income. For $100,000 annual income ($8,333/month gross), that's $2,333 max housing and $3,000 max total debt.
A simpler rule: aim for a home price no greater than 3× your annual gross income, or 4× with strong credit and low other debts. $100,000 income → $300,000–$400,000 target home price. Stretches in HCOL markets are common but financially risky.
How to Use This Calculator
- Enter the home price and your down payment (as a dollar amount or percentage — they sync automatically).
- Set the interest rate. Use today's national average from the Freddie Mac PMMS or your lender's quote.
- Pick a loan term — 30 years is most common; 15 saves dramatically more interest.
- Open Advanced Settings to adjust property tax (1–1.5% of home value is typical), insurance ($1,000–$2,000/yr), PMI (~0.5–1% of loan if down < 20%), and HOA fees.
- Optionally add extra payments — monthly or one-time lump — to see how much interest you save and how many years sooner the loan is paid off.
- Read the breakdown panel, donut chart, and amortization schedule.
- Share or export using the Share, PDF, or CSV buttons.
Methodology & Assumptions
- Fully amortizing fixed-rate mortgage. ARMs and interest-only loans are not modelled.
- Property tax and homeowners insurance assumed constant over the loan term (in reality both rise with inflation).
- PMI computed as a percentage of the loan and removed automatically when LTV reaches 78% per the Homeowners Protection Act (15 USC §4901).
- Extra payments applied to principal at the end of each month, accelerating amortization.
- Historical rate context from Freddie Mac PMMS weekly data, 1971–present.
- All math runs in your browser; no data leaves your device.
Glossary
- PITI
- Principal, Interest, Taxes, Insurance — the four components of a typical mortgage payment.
- PMI (Private Mortgage Insurance)
- Required on conventional loans with less than 20% down. Auto-removed at 78% LTV per the Homeowners Protection Act.
- MIP (Mortgage Insurance Premium)
- The FHA equivalent of PMI. Includes upfront 1.75% (UFMIP) and annual 0.55%/0.85%. Generally lasts the life of the loan unless you put 10%+ down.
- APR (Annual Percentage Rate)
- Interest rate plus most lender fees expressed as a yearly cost. Always higher than the interest rate; required by Truth in Lending Act for comparison shopping.
- Escrow
- An account the lender holds to pay your property taxes and insurance on your behalf, with monthly contributions added to your mortgage payment.
- LTV (Loan-to-Value)
- Loan amount divided by appraised value, expressed as a percentage. The threshold for PMI removal is 78% LTV.
- DTI (Debt-to-Income)
- Total monthly debt payments divided by gross monthly income. Most lenders cap at 43–50%.
- Discount Points
- An upfront fee (1% of loan principal each) paid to lower your interest rate by ~0.25% per point.
- ARM (Adjustable Rate Mortgage)
- A mortgage whose rate adjusts periodically based on a market index after an initial fixed period (e.g., 5/1 ARM = fixed for 5 years, then adjusts annually).
- Conforming Loan Limit
- The maximum loan size that Fannie Mae and Freddie Mac will buy. $806,500 in most US counties for 2025; higher in HCOL areas.
- Jumbo Loan
- A mortgage above the conforming loan limit. Typically requires higher credit, larger down payment, and may have higher rates.
Frequently Asked Questions
Use the amortization formula: M = P × [r(1+r)n] / [(1+r)n − 1], where P is the loan principal, r is the monthly rate (annual ÷ 12), and n is the total months. For a $300,000 loan at 7% / 30 years, P&I ≈ $1,996/month. Property taxes, insurance, PMI, and HOA are added on top to get total PITI.
Principal + Interest + Taxes + Insurance — the four components of a typical mortgage payment. Many lenders also escrow flood insurance and HOA fees, technically separate from PITI.
Housing costs (PITI + HOA) ≤ 28% of gross monthly income; total debt payments ≤ 36%. For $100k income that's $2,333 max housing and $3,000 max total debt. Lenders may stretch to 33/45 or 36/50 for strong applicants.
Conventional: 3% (first-time) or 5%. FHA: 3.5% with FICO 580+. VA: 0% for eligible veterans. USDA: 0% for rural areas. Putting 20% down avoids PMI on conventional loans. Median first-time buyer puts down ~6%; repeat buyers ~17%.
Conventional typically requires 620+. FHA goes to 580 (3.5% down) or 500 (10% down). VA has no statutory minimum but most lenders want 580+. Best rates go to FICO 740+. CFPB's "Explore Rates" tool shows national averages by credit tier.
15-year: ~0.5–1% lower rate, far less total interest, but ~40–50% higher monthly payment. 30-year: lower payments and more cash flow flexibility, but much more total interest. On a $300K loan at 6.5% (30-yr) vs 5.75% (15-yr), the difference in total interest is roughly $236,000.
Substantial. On a $300K loan at 6.5% / 30 yr, just an extra $200/month saves about $77,000 in interest and pays off ~6 years early. Use the Extra Monthly Payment input above to model your specific scenario.
Typically 2–5% of the loan amount. On a $400K loan, expect $8,000–$20,000. Includes origination (0.5–1%), appraisal ($400–700), title insurance (0.5–1%), recording fees ($100–250), prepaid taxes (2–6 months), prepaid insurance (12 months), and credit report ($30–50).
Per the federal Homeowners Protection Act, conventional PMI auto-terminates at 78% LTV based on the original amortization schedule. You can request removal at 80% LTV. FHA MIP is harder to remove — for loans after June 2013 it lasts the loan's life unless you put 10%+ down (drops at year 11) or refinance to conventional.
The interest rate is the cost of borrowing the principal — the number used to compute the monthly payment. The APR includes the rate plus most lender fees expressed as a yearly cost. APR is always higher; the Truth in Lending Act requires both to be disclosed for apples-to-apples comparison.
An accelerated biweekly schedule has you pay half your monthly payment every two weeks. With 52 weeks per year, that's 26 half-payments = 13 monthly payments instead of 12. The extra month of principal per year shaves about 4–6 years off a 30-year mortgage and saves tens of thousands. Verify your lender actually applies biweekly halves to principal.
Per Freddie Mac PMMS, the historical average 30-year fixed rate from 1971 to today is about 7.7%. Peak: 18.6% in October 1981. All-time low: 2.65% in January 2021. The 2010s averaged about 4%; today is below the 50-year average but well above the 2020–2021 lows.