Your total monthly mortgage payment includes four components: principal and interest (calculated using the standard amortization formula), property taxes (annual amount divided by 12), homeowners insurance (annual premium divided by 12), and PMI if your down payment is less than 20%. This calculator adds all four to give you the complete monthly cost.

Private Mortgage Insurance (PMI) is required by most lenders when your down payment is less than 20% of the home price. It protects the lender if you default on the loan. PMI typically costs between 0.3% and 1.5% of the original loan amount per year. Once you reach 20% equity in your home, you can usually request to remove PMI.

A larger down payment reduces your loan amount, which lowers your monthly payment and the total interest you pay over the life of the loan. Putting down 20% or more also eliminates the need for PMI, which can save you hundreds of dollars per month. Even a small increase in your down payment can make a meaningful difference.

Yes, this calculator includes property taxes in your estimated monthly payment. Most mortgage lenders require you to pay property taxes through an escrow account as part of your monthly payment. The lender collects the money each month and pays the tax bill on your behalf.

Refinancing can save money when current interest rates are significantly lower than your existing rate, typically by at least 0.5% to 1%. It also makes sense if you want to switch from an adjustable rate to a fixed rate, or if you want to change your loan term. Consider the closing costs and how long you plan to stay in the home before deciding.

Yes, completely. All mortgage calculations are performed directly in your browser using JavaScript. No financial data, home prices, or personal details are ever sent to any server or stored in any database. Your information stays on your device.