Mortgage Calculator
Monthly payment including tax, insurance and PMI — the number you actually pay.
How it works
The mortgage payment people quote is principal and interest. The payment that leaves your account is usually four or five things bundled together: principal, interest, property tax, insurance, and — below 20% equity — private mortgage insurance. Service charges sit on top.
PMI is the one worth watching. It buys you nothing; it protects the lender. It falls away once you hold 20% equity, which happens through repayment, through price rises, or by paying a lump sum to get there early.
Common questions
How much deposit do I need to avoid PMI?
20% of the purchase price. Below that most conventional lenders require PMI until your equity reaches 20%, at which point you can usually request cancellation. It ends automatically at 22%.
Should I take a shorter term?
A 15-year term costs far less interest overall but demands a much higher monthly payment. The question is not which is cheaper — it is which payment you can sustain in a bad year.