Mortgage Calculator: Monthly Payment and Affordability
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Home Mortgage Payment Calculator 🏠 💰

Estimate your true monthly mortgage payment, including Principal, Interest, Taxes, and Insurance (PITI).

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What is PITI?

The **Mortgage Calculator** goes beyond just Principal and Interest (**P&I**) to calculate the true monthly cost of homeownership, known as **PITI**:

  • **P**rincipal: The amount of the loan balance paid down.
  • **I**nterest: The cost of borrowing the money.
  • **T**axes: Monthly portion of annual property taxes.
  • **I**nsurance: Monthly portion of annual homeowner's insurance.
For most mortgages, lenders require taxes and insurance to be paid into an **escrow account** every month, making the PITI calculation essential for budgeting.

Calculating the Loan Amount

The calculator first determines the **Loan Principal** by subtracting the **Down Payment** from the **Home Price**. This is the amount the mortgage is based on, which is then amortized over the loan term using the fixed annual interest rate.