What PITI means
Lenders describe the core mortgage payment as PITI: Principal, Interest, property Taxes and home Insurance. Many buyers are surprised that taxes and insurance add several hundred dollars a month on top of the loan payment — this calculator shows the whole figure from the start.
Worked example
A $400,000 home with $80,000 down at 6.5% for 30 years: principal & interest is about $2,022/month. Add typical tax ($400/month) and insurance ($150/month) and the real monthly cost is about $2,572 — before any HOA fees.
15 years vs 30 years
On that same $320,000 loan, a 15-year term raises the payment to roughly $2,788 but cuts total interest from about $408,000 to about $182,000. Run both terms above and compare the 'total interest' line — the difference is the true price of a lower monthly payment.
Frequently asked questions
What is PMI and when does it stop?
Private Mortgage Insurance protects the lender when the down payment is under 20%. On conventional loans it is usually removed once your balance reaches 80% of the home's value — ask your lender about their exact process.
How much house can I afford?
A common guideline keeps the full PITI payment under about 28% of gross monthly income, but the right figure depends on your other debts and savings. This calculator shows the payment; only you know your full budget.
Are property taxes really monthly?
You pay them yearly or through escrow, but lenders collect 1/12 every month with your payment — which is why they belong in a monthly comparison.
Does a bigger down payment always win?
It lowers the loan, the interest and can remove PMI — but it also ties up cash you may need for moving, repairs and emergencies. Compare both scenarios above.