Mortgage Payment Calculator with Taxes & Insurance 2026
🚨 Most Calculators LIE About Your Monthly Payment
❌ What They Show:
✅ What You ACTUALLY Pay:
The difference? $1,058/month. That's $12,696/year you weren't expecting. Our calculator shows your TRUE monthly payment including ALL costs.
🧮 Free Mortgage Payment Calculator (2026)
Enter Your Info:
💰 Your Monthly Payment Breakdown:
📊 How to Use This Calculator
- 1. Home Price: The purchase price of the home
- 2. Down Payment: How much you're putting down (% or $)
- 3. Interest Rate: Current mortgage rate (check today's rates)
- 4. Property Taxes: Check county assessor website (usually 1-2% of home value annually)
- 5. Home Insurance: Get quotes from 3+ insurers ($1,000-$3,000/year typical)
- 6. PMI: Required if down payment less than 20% (0.5-1% of loan annually)
- 7. HOA Fees: If applicable (varies widely by community)
💰 What's Included in Your Monthly Mortgage Payment?
1. Principal + Interest (P&I)
What it is: The loan payment itself. Principal = paying down the loan balance. Interest = cost of borrowing.
Example: $400K home, 20% down = $320K loan at 6.5% for 30 years
- • Monthly P&I: $2,022
- • Year 1: $1,733 interest, $289 principal
- • Year 15: $1,083 interest, $939 principal
- • Year 30: $33 interest, $1,989 principal
2. Property Taxes (T)
What it is: Annual taxes paid to your county/city. Usually 1-2% of home value per year.
How to calculate:
- • Check county assessor website for tax rate
- • $400K home × 1.5% tax rate = $6,000/year
- • $6,000 ÷ 12 months = $500/month
- • Varies by state: NJ (2.5%), TX (1.8%), CA (0.7%)
3. Home Insurance (I)
What it is: Insurance covering fire, theft, damage. Required by all lenders.
Typical costs:
- • National average: $1,500-$2,000/year ($125-$167/month)
- • High-risk areas: $3,000-$5,000/year (hurricanes, earthquakes)
- • Low-risk areas: $800-$1,200/year
- • Pro tip: Shop 3+ insurers to save $500-$1,000/year
4. Private Mortgage Insurance (PMI)
What it is: Insurance protecting the lender if you default. Required if down payment less than 20%.
How much it costs:
- • Rate: 0.5-1% of loan amount annually
- • Example: $320K loan × 0.75% = $2,400/year = $200/month
- • How to avoid: Put down 20% or use piggyback loan
- • How to remove: Once you hit 20% equity, request cancellation
5. HOA Fees (if applicable)
What it is: Monthly fees for community maintenance (condos, townhomes, planned communities).
Typical costs:
- • Condos: $200-$500/month (includes exterior maintenance, amenities)
- • Townhomes: $100-$300/month
- • Single-family HOA: $50-$200/month (landscaping, pool, clubhouse)
- • Warning: HOA fees can increase 3-5% annually
📊 Real-World Examples (2026 Rates)
Example 1: First-Time Buyer (FHA Loan)
Loan Details:
- • Home Price: $300,000
- • Down Payment: 3.5% ($10,500)
- • Loan Amount: $289,500
- • Interest Rate: 6.75%
- • Loan Term: 30 years
Monthly Payment:
- • P&I: $1,878
- • Property Taxes: $375
- • Home Insurance: $125
- • FHA MIP: $201
- • Total: $2,579/mo
Example 2: Move-Up Buyer (Conventional)
Loan Details:
- • Home Price: $500,000
- • Down Payment: 20% ($100,000)
- • Loan Amount: $400,000
- • Interest Rate: 6.5%
- • Loan Term: 30 years
Monthly Payment:
- • P&I: $2,528
- • Property Taxes: $625
- • Home Insurance: $200
- • PMI: $0 (20% down)
- • Total: $3,353/mo
Example 3: Luxury Condo (with HOA)
Loan Details:
- • Home Price: $600,000
- • Down Payment: 15% ($90,000)
- • Loan Amount: $510,000
- • Interest Rate: 6.75%
- • Loan Term: 30 years
Monthly Payment:
- • P&I: $3,307
- • Property Taxes: $750
- • Home Insurance: $150
- • PMI: $213 (less than 20% down)
- • HOA Fees: $450
- • Total: $4,870/mo
💡 7 Ways to Lower Your Monthly Payment
1. ✅ Put Down 20% to Avoid PMI
Savings: $150-$300/month. On a $400K home, 20% down ($80K) eliminates $200/month PMI = $72,000 over 30 years.
2. ✅ Shop for Lower Interest Rate
Savings: $100-$200/month per 0.5% rate drop. Compare 3-5 lenders. Rates vary 0.25-0.5% between lenders.
Compare 50+ lenders in 2 minutes →3. ✅ Buy Mortgage Points
Savings: $50-$100/month. Pay 1% upfront ($4K on $400K loan) to drop rate 0.25% = $80/month savings. Break-even in 50 months.
4. ✅ Shop Home Insurance
Savings: $50-$100/month. Get quotes from 3+ insurers. Bundling with auto saves 15-25%.
5. ✅ Challenge Property Tax Assessment
Savings: $50-$150/month. If your home is overassessed, file an appeal. 50% success rate.
6. ✅ Choose 15-Year Loan (Lower Rate)
Savings: 0.5-0.75% lower rate, but higher monthly payment. $400K at 5.75% (15-yr) = $3,326/mo vs $2,528 (30-yr at 6.5%). Save $200K in interest!
7. ✅ Improve Credit Score
Savings: $100-$300/month. 680 score = 7.0% rate. 740 score = 6.5% rate. That's $150/month savings on $400K loan.
❓ Frequently Asked Questions
What is PITI and why does it matter?
PITI = Principal + Interest + Taxes + Insurance. This is your TRUE monthly housing cost. Most calculators only show P&I, which is misleading. Lenders use PITI to qualify you (must be less than 28% of gross income). Always calculate PITI, not just P&I.
How much should I budget for property taxes?
1-2% of home value annually. Check your county assessor website for exact rate. High-tax states: NJ (2.5%), IL (2.3%), TX (1.8%). Low-tax states: HI (0.3%), AL (0.4%), LA (0.5%). On a $400K home, that's $4,000-$8,000/year = $333-$667/month.
Can I pay property taxes myself instead of through escrow?
Usually not if you have a mortgage. Most lenders require escrow (they collect taxes/insurance monthly and pay annually). Once you hit 20% equity, you can request to cancel escrow. But be disciplined — missing a tax payment can trigger foreclosure.
How do I remove PMI from my monthly payment?
3 ways: (1) Reach 20% equity through payments + appreciation, then request cancellation. (2) Refinance once you hit 20% equity. (3) Pay down principal aggressively to hit 20% faster. PMI auto-cancels at 22% equity by law.
What's the 28/36 rule for mortgage qualification?
28% rule: Your PITI should be ≤28% of gross monthly income. 36% rule: Your total debt (PITI + car + credit cards + student loans) should be ≤36% of gross income. Example: $100K income = $8,333/mo gross = max $2,333 PITI, max $3,000 total debt.
Should I include HOA fees in my mortgage payment?
HOA fees are separate, but count toward DTI. You pay HOA directly to the association, not through your mortgage. But lenders include HOA in your debt-to-income ratio. $400 HOA = $400 less you can spend on mortgage payment.
🧮 Calculate Your Exact Payment & Get Pre-Approved
Know your TRUE monthly payment including taxes, insurance, and all fees. Compare rates from 50+ lenders.
🎯 The Bottom Line
Most mortgage calculators lie by omission. They show you principal + interest, but your REAL monthly payment includes property taxes, home insurance, PMI (if less than 20% down), and HOA fees.
The difference can be $500-$1,500/month. That's why so many buyers get shocked at closing when they see their actual payment.
Use our calculator to see your TRUE monthly payment (PITI). Then shop 3-5 lenders to find the best rate. Every 0.25% you save = $50-$100/month = $18K-$36K over 30 years. Do the math right, and you'll save tens of thousands! 💰