US Mortgage Calculator
Estimate your monthly mortgage payment (PITI) including principal, interest, taxes, and insurance. Perfect for US home buyers and homeowners looking to refinance.
Understanding Your Mortgage Payment
Buying a home in the United States involves more than just paying the principal and interest. Most lenders use an escrow account to collect monthly payments for other housing-related expenses. This is commonly referred to as PITI:
- Principal: The amount that goes toward paying down the actual balance of your loan.
- Interest: The cost of borrowing the money from the lender, determined by your interest rate.
- Taxes: Real estate property taxes charged by your local government.
- Insurance: Homeowners insurance required to protect the property against damage.
The Mortgage Formula
The standard formula for calculating the monthly Principal & Interest (P&I) payment is:
M = Total monthly P&I payment
P = Principal loan amount
i = Monthly interest rate
n = Number of months
Mortgage FAQs
What is a typical mortgage term in the US?
The most common mortgage terms in the United States are 30-year fixed and 15-year fixed loans. 30-year loans offer lower monthly payments, while 15-year loans save significantly on total interest.
What is PMI?
Private Mortgage Insurance (PMI) is usually required by US lenders if your down payment is less than 20% of the home price. It protects the lender if you stop making payments.
How much are property taxes in the US?
Property taxes vary significantly by state and county, typically ranging from 0.5% to 2.5% of the home value annually. The national average is approximately 1.1%.
What does a monthly mortgage payment include?
A standard US mortgage payment often includes PITI: Principal, Interest, Taxes, and Insurance. It may also include HOA (Homeowners Association) fees or PMI.
Quick Mortgage Guide
Standard Down Payment
20% is the gold standard to avoid PMI, but many programs allow as little as 3% or 3.5% (FHA).
Credit Score Impact
A score above 740 typically qualifies you for the lowest possible interest rates in the US market.
Closing Costs
Expect to pay 2-5% of the home price in closing costs in addition to your down payment.