Mortgage & PMI Payment Calculator (2026)
Under standard conventional mortgage underwriting rules, if your down payment is less than 20% of the home purchase price, your lender will require Private Mortgage Insurance to protect against default. PMI typically costs between 0.5% and 1.5% of the original loan balance annually, broken down into monthly premiums. Under the federal Homeowners Protection Act, you have the right to request PMI cancellation once your loan principal reaches 80% of the original home value, and lenders must automatically terminate it at 78% LTV.
This calculator computes your exact monthly amortization using current interest rate benchmarks, accounts for annual county property taxes and insurance escrows, and displays lifetime interest costs. Compare 15-year fixed and 30-year fixed loan structures to see how increasing your down payment saves tens of thousands in financing charges.
Mortgage Parameters
Total Monthly Housing Cost (PITI)
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View All 8 Tools →Frequently Asked Questions
Official guidance, statutory formulas, and IRS benchmarks.
What does PITI stand for and why is it important?
PITI stands for Principal, Interest, Taxes, and Insurance. It represents your complete monthly housing expense. Most mortgage lenders use your PITI payment to compute your front-end debt-to-income (DTI) ratio, which generally must remain below 28% to 36% for conventional loan approval.
How is Private Mortgage Insurance (PMI) calculated and when does it stop?
PMI is calculated as a percentage of your total loan balance (usually 0.5% to 1.2% per year) and added to your monthly payment. Once your mortgage balance reaches 80% of the original purchase price through scheduled amortization, you can request cancellation in writing. By law, lenders must terminate PMI automatically when your loan balance reaches 78% LTV.
Should I choose a 15-year or 30-year fixed-rate mortgage?
A 15-year mortgage features higher monthly payments but lower interest rates and allows you to build equity much faster, cutting your total lifetime interest by up to 60%. A 30-year mortgage offers lower, more manageable monthly payments, providing greater cash flow flexibility at the expense of higher cumulative interest over time.
How do property taxes affect monthly mortgage escrow?
Most mortgage lenders collect property taxes as part of your monthly escrow payment. The lender holds these funds in an escrow account and pays your local county or municipal tax authority directly when bills are due once or twice a year.