Calculate your exact monthly mortgage payment including Principal, Interest, Property Taxes, Home Insurance (PITI), and PMI across 15-year and 30-year terms.
Fixed-rate mortgage payments are computed using the standard financial annuity amortization equation, which determines the exact monthly payment required to amortize principal and interest down to zero over the loan term:
Where M is monthly principal & interest, P is loan principal (Home Price minus Down Payment), r is monthly interest rate (APR / 12), and n is total monthly payments (360 months for 30 years).
• Property Tax Escrow: Calculated as (Home Price × Annual Tax Rate) / 12.
• Homeowners Insurance Escrow: Annual premium divided into 12 equal monthly disbursements.
• Private Mortgage Insurance (PMI): Applied if down payment is under 20% of purchase price, estimated at ~0.5%–1.0% of principal per year until 20% home equity is attained.
• Worked Example: A $400,000 purchase with 20% down ($80,000) creates a $320,000 loan balance. At a 6.50% interest rate over 30 years, monthly principal and interest equals $2,022.62. Adding $400/mo in property taxes (1.2%) and $116.67/mo in insurance yields a total monthly payment of $2,539.29 (PITI).
PITI stands for Principal, Interest, Taxes, and Insurance. It encompasses the complete monthly expense of owning a mortgaged property, including payments to pay down the mortgage, bank borrowing interest, county/city property taxes, and homeowners hazard insurance.
While 20% down eliminates PMI, conventional loans permit down payments as low as 3% for first-time buyers, and FHA loans require 3.5%. VA and USDA loans offer 0% down options for qualifying military veterans and rural homebuyers.
A 30-year mortgage offers lower monthly payments, maximizing monthly cash flow flexibility. A 15-year mortgage requires approximately 30%–40% higher monthly payments but saves hundreds of thousands of dollars in lifetime interest charges and builds equity twice as fast.
Under federal law, your lender must automatically cancel PMI when your principal balance reaches 78% of the original purchase value, provided your payments are current. You can also request cancellation once you reach 80% equity.
Embed this responsive PITI mortgage calculator into any real estate or financial website.