Mortgage Calculator with Taxes, Insurance & PMI

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Got 3 minutes? We can get you prequalified for loan in that time.

And when you work with us you can complete the entire homebuying process online. We'll walk you through every step making sure you get the best home, at the best price, at the best rates.

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Calculating your mortgage payments

Many people hear 'mortgage payment' and think it's just the interest payments on their home loan. In reality, interest is only part of the monthly payment associated with buying a home. Homeowners also need to account for several other fees like insurance, property taxes, and more. The down payment size, loan term, and local laws all factor into these other costs. It may seem complicated, but we promise it's not. Our mortgage calculator makes it simple. Enter in a couple values and it will automatically calculate the monthly costs associated with the home you want. We encourage you to play around with the inputs and see how it affects your monthly payment.

How is our mortgage calculator different? Why should I use it?

The goal of this mortgage calculator is to estimate how much money you will pay each month to finance your home purchase. This monthly amount includes more than just the payment on your loan. It includes everything else associated with buying and owning a house because, like or not, those are sizable expenses you'll need to pay every month of the year. Missing these other payments, like missing an interest payment, will negatively affect life in your new home. Homebuyers should use a mortgage calculator because it will give them a more accurate estimate of the monthly payments associated with owning a home.

A monthly mortgage payment is composed of your monthly payment towards the principal amount of your loan, your monthly payment towards the interest owed on your loan, your property taxes, your homeowner's insurance, your private mortgage insurance (if applicable), any Homeowners Association fees (if applicable), and even home utilities. Let's quickly look at each one:

Principal

Your payment towards the principal loan amount and the interest makes up the majority of your monthly payment. Here you're paying back part of the principal loan amount as well as interest on that loan.

Property Taxes

Property taxes are paid each month and are very localized. Towns use property taxes to pay for local government services, so each district employs them differently. The property taxes on two similar-sized houses can differ vastly based on a difference of just a few miles. Buying a home somewhere with lower property taxes can save you a lot of money in the long term.

Private Mortgage Insurance (PMI)

Private Mortgage Insurance (PMI) is an extra cost that usually applies to individuals who made down payments less than 20%. Borrowers who are putting less than 20% down on a house are often required by lenders to also purchase PMI. This makes the loan less risky for the lender. If a borrower is purchasing PMI, it's extremely common for it to be lumped into their monthly mortgage payments.

HOA Fees

Homeowners Association (HOA) fees are fees charged by a homeowners association for upkeep of the community. If your neighborhood shares a swimming pool, park, or other resources, they may charge a small monthly fee for the upkeep of these amenities.

Homeowners Insurance

Homeowners insurance is a component many homebuyers don't properly consider. Many lenders will require borrowers to purchase insurance on their home. Lenders rationalize that if your home burns down or is destroyed by a hurricane, you'll be less inclined to make mortgage payments on a pile of rubble. Their solution is to require homeowners to buy monthly homeowners insurance while paying off a mortgage. Once you pay off your mortgage, you can then decide whether or not to keep homeowners insurance.

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How much will I be paying in taxes and insurance?

As a homeowner, you’re responsible for taxes and insurance. These can be paid in one of two ways, depending on your preference.

Directly, where you pay the county assessor and the homeowner’s insurance provider (1-2 times per year).
Or, what most borrowers do, you can opt to roll taxes and insurance costs into your monthly payment and let the loan servicer apply the payments for you.

What's going into my closing costs?

Closing costs refer to the costs and fees that the buyers and sellers pay to finalize a transaction. These can include HOA transfer fees, title insurance, recording fees - and more.

As a borrower, you’ll get a loan estimate before your loan goes into process so there are no surprises when finalizing your transaction.

How to reduce your monthly mortgage payment

Now that you're getting a better idea of the monthly costs involved in buying and owning a home, you owe it to yourself to learn about how to reduce some of those costs. The most obvious way to reduce your monthly mortgage payment is to buy a cheaper house which requires a smaller loan. The smaller your loan, the less you're paying each month of the principal. However, there are several other ways to reduce your monthly payment on an identically sized home purchase.

The three main ways to lower your monthly payments are to adjust the length of your loan, increase your down payment (and therefore decrease the size of your mortgage), and finding ways to lower your interest rates. Another way, not exactly related to your actual mortgage, is buying a home in an area with lower property taxes. Keep in mind, property taxes can differ widely when you travel just a few miles. Let's look at each of these methods in a little more detail. electricity running in your home.

Adjust the length of your loan

The math is pretty simple. If you pay back $100,000 over ten years, you'll end up paying $10,000 each year. The same amount paid back over twenty years would be $5,000 a year. Getting more time to pay off your mortgage will greatly reduce your monthly payments. It's very common for homebuyers to prefer 30-year fixed rate mortgages over shorter term 10 or 15-year terms. In mortgage lingo, extending the length of your mortgage is referred to as “increasing your loan term”.

Make a bigger down payment

The bigger your down payment is on a home, the less money you'll have to borrow to fund the rest of the purchase price. The smaller your principal loan amount is, the smaller your monthly payments will be. Increasing your down payment also helps you avoid a few other extra expenses. For example, many lenders will require homebuyers to also purchase Private Mortgage Insurance (PMI) if their down payment is below a certain level. Lenders often require PMI because it lowers their risk. Typically, if you can put at least 20% down on a home purchase, you won't have to buy PMI. Even if you can't put 20% down, the larger your down payment is the lower your PMI will be.

Lower your interest rate

There are a variety of ways to lower your interest rate. First and foremost, increasing the size of your down payment will likely qualify you for a lower interest rate. You can also lower your interest rate by buying 'points'. Buying points is essentially paying an upfront cost to lower the long-term cost of your interest.

Consider an adjustable-rate mortgage (ARM)

Another strategy is considering an adjustable-rate mortgage (ARM); because these loans are based on short-term interest rate indices, which are still currently at very low levels, they effectively offer a low starting fixed interest rate over an introductory period, and then once the introductory period expires the rate adjusts upward or downward depending on how the short-term interest rate index moved during each reset period. Typically, the introductory period of low interest rates is between 5-10 years, which makes it a great option for a homebuyer who knows they will sell or refinance the home in a short period of time. If you know you won't keep a particular mortgage for very long, an ARM is a fantastic way to save on your interest rate payments in this environment.

Improve your credit score

Finally, improving your credit score can greatly improve your chances of qualifying for a lower interest rate. Lenders are much more likely to offer you a favorable interest rate if you have a good credit score and low debt-to-income ratio. If you're not planning on buying a home in the short-term future, you may consider 6 months of deliberate practice to improve your credit score. You can improve your credit score by paying down your debt and religiously making credit payments on time.

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How much should I put down on my home?

To purchase a home, you need to save for a down payment which you’ll pay at closing to decrease the total size of your loan. They are typically 3.0% - 20.0% of the total market value of the property but can be more.

Nowadays, there are programs that will allow you to put as little as 3% down, and if you opt for this amount, something called mortgage insurance would apply as part of your monthly payment. The only way to waive this insurance is to put 10% or more down. Historically, people have had to put 20% or more down to waive mortgage insurance - so this is a competitive program available to you.

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Which loan types do I qualify for?

Most traditional loans are government backed and typically fall into three categories: conventional, VA, and FHA financing. All great options - especially if you have traditional employment (with pay stubs, a W2).

But what if you’re self employed, or have 1099 income? It can be more challenging to apply for those types of loans with uneven income. TPH ZeroDown Brokerage, Inc. and its network of lenders can help with a few different, non-traditional options and we often work with self-employed individuals to help them get financing. Find more details here and begin the process today.

Everything you need to know about mortgage pre-approval

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Everything you need to know about ZeroDown

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What is TPH Digital Mortgages Inc?

TPH Digital Mortgages Inc is a simpler, more streamlined way to buy the home you want. We find you the most competitive financing with lowest mortgage rate matching, and we have flexible options so you may be able to qualify even if you've been unsuccessful with other lenders. Find and finance your home all in one place. We're putting as much of the homebuying process online as possible to cut out needless fees and unnecessary middle men.

Can I get a mortgage through you?

Yes! TPH Digital Mortgages Inc has a network of lending partners with many flexible loan options who work with the top lenders in the country so we can find you the most competitive loan program for you and your dream home. The process starts by getting prequalified for a loan. You can do that here in just under 3 minutes.

What type of home loans do you offer?

We have flexibility! TPH Digital Mortgages Inc and its network of lenders offers many non-traditional options that cater to borrowers who are self-employed or have variable income, and we also provide standard loan products including Conforming Conventional, Jumbo, VA, and FHA. You can choose any loan term you want whether it's 30 years, 20 years, 15 years or Flex Term.

What is the minimum down payment?

Many first time home buyers will qualify for as little as 3% down on their primary residence, buyers purchasing a subsequent home can still qualify for as little as 5% down, but it is a case-by-case basis that is determined by many factors. We can give you a better answer after you've taken our prequalification quiz.

What does getting prequalified mean?

Getting prequalified for a loan is an important part of the homebuying process because it gives you an idea of what price range to target for your home. This helps you know your monthly payment so you can budget accordingly and have certainty as you shop for a home.