In Short
A $400,000 home with 20% down at 6.5% for 30 years has a $2,022.62 principal-and-interest payment; with 1.8% property tax and $2,400 a year of insurance the monthly payment is $2,822.62. With 10% down, PMI at 0.75% adds $225 a month until the balance is scheduled to reach 78% of the price, about 9 years in.
How to Use the Mortgage Calculator
- Enter the home price and your down payment, as a percent or in dollars.
- Enter the rate and pick a 15-, 20- or 30-year term.
- Add property tax (as a rate or dollars a year), home insurance, HOA dues and a PMI rate if you put down less than 20%.
- Optionally add your household income and other debt payments to check the 28/36 guideline.
- Or tap Say It All: “The house is 400 thousand with 10 percent down at 6.25 percent for 30 years.”
The Formula
PITI is principal, interest, taxes and insurance. HOA dues and PMI sit on top when they apply. Principal and interest stay the same for a fixed-rate loan; taxes and insurance can change every year.
- Loan = price − down payment
- Principal & interest = loan × r ÷ (1 − (1 + r)^−n), r = rate ÷ 12, n = years × 12
- Property tax per month = price × tax rate ÷ 12
- PMI per month = loan × PMI rate ÷ 12, while the balance is above 78% of the price
- Monthly payment = principal & interest + tax + insurance + HOA + PMI
Worked Examples
| Scenario | Inputs | Result |
|---|---|---|
| 20% down, no PMI | $400,000 home, $80,000 down, 6.5%, 30 years, 1.8% tax, $2,400 insurance | $2,022.62 P&I · $2,822.62 a month · $408,142 total interest |
| 10% down with PMI | $400,000 home, 10% down, 6.5%, 30 years, PMI 0.75% | $2,275.44 P&I + $225 PMI · $3,300.44 a month · PMI ends at payment 110 |
| 5% down starter home | $300,000 home, 5% down, 6.75%, 30 years, PMI 0.75% | $1,848.50 P&I + $178.13 PMI · $2,676.63 a month · PMI ends at payment 140 |
| 15-year loan | $350,000 home, 20% down, 6%, 15 years, 2% tax, $3,000 insurance, $50 HOA | $2,362.80 P&I · $3,246.13 a month · $145,304 total interest |
Illustrative examples, not projections. Figures use the tax year shown and the assumptions above.
When Does PMI Go Away?
Private mortgage insurance is generally required on a conventional loan with less than 20% down [3]. For single-family principal residences closed on or after July 29, 1999, you can ask your servicer in writing to cancel PMI when the balance is scheduled to reach 80% of the home's original value, and the servicer must end it automatically when the balance is scheduled to reach 78%, if you're current on payments [1].
Under the Homeowners Protection Act, PMI also ends at the midpoint of the loan's amortization schedule at the latest [2]. The calculator ends PMI at the 78% date (or the midpoint, if that comes first) based on the original schedule.
How Much House Fits the 28/36 Guideline?
A common mortgage rule of thumb is to keep the total monthly home payment at or below 28% of gross monthly income; lenders may approve more or less depending on your whole financial picture [4]. For all debts together, including the mortgage, the CFPB's debt-to-income worksheet uses 36% or less as a guideline for homeowners, and notes some lenders go to 43% or higher [5].
So a $2,822.62 monthly payment fits the 28% guideline at a gross household income of about $121,000 a year. It is a guideline, not a rule.
Why Does the Property Tax Rate Matter So Much?
Property tax is set locally. In Texas there is no state property tax: local taxing units such as counties, cities and school districts set the rates [6]. The 1.8% starting rate is only a rough Texas-style figure; your county appraisal district and the local rates decide the real bill. On a $400,000 home every 0.25 points is $83 a month.
Your Loan Estimate shows the lender's figures for taxes, insurance and mortgage insurance, and the APR, which includes points and other loan costs [7].
Frequently Asked Questions
What is the mortgage payment on a $400,000 house?
With 20% down at 6.5% for 30 years, principal and interest is $2,022.62 a month. With 1.8% property tax ($600/mo) and $2,400 a year of insurance ($200/mo), it's $2,822.62.
When does PMI come off a conventional loan?
Automatically when the balance is scheduled to reach 78% of the home's original value, if you're current; you can ask for it to be cancelled at 80% [1]. It also ends at the loan's midpoint at the latest [2].
How much is PMI a month?
It depends on the lender, your credit and your down payment. At 0.75% of a $360,000 loan it's $225 a month. Your lender's Loan Estimate shows the actual premium.
What is PITI?
Principal, interest, taxes and insurance: the four parts of most monthly mortgage payments. HOA dues and PMI are added on top when they apply.
How much income do I need for a $3,000 mortgage payment?
Under the 28% guideline, about $10,715 a month or $128,600 a year of gross income. It is a guideline, not a rule: lenders may approve more or less [4].
Sources
- When can I remove private mortgage insurance (PMI) from my loan? — Consumer Financial Protection Bureau
- Consumer Compliance Examination Manual, V-5: Homeowners Protection Act — Federal Deposit Insurance Corporation
- What is private mortgage insurance? — Consumer Financial Protection Bureau
- Your home loan toolkit — Consumer Financial Protection Bureau
- Debt-to-income calculator (Your Money, Your Goals) — Consumer Financial Protection Bureau
- Property tax — Texas Comptroller of Public Accounts
- Mortgage interest rate vs. APR: what's the difference? — Consumer Financial Protection Bureau
Official sources only: the IRS, SSA, BLS and other government agencies. Read how Zentavos researches.