Your true monthly payment: principal, interest, taxes, insurance, PMI and HOA
The number a bank advertises is principal & interest; the number that leaves your checking account every month is PITI — Principal, Interest, property Taxes and Insurance, often joined by PMI and HOA dues. On a typical purchase, those extras add 25–40% on top of the advertised payment. This calculator shows the real number, itemized, so the house you fall for is one you can actually carry.
| Component | Typical size | Notes |
|---|---|---|
| Principal & interest | The amortized loan payment | Fixed for the life of a fixed-rate loan |
| Property tax | 0.3%–2.2% of home value per year | Set by county; reassessed periodically — it rises |
| Homeowners insurance | $1,200–$3,000+/yr | Higher in wind/hail/wildfire states |
| PMI | 0.3%–1.5% of loan per year | Only when down payment < 20%; removable at 20–22% equity |
| HOA dues | $0–$600+/mo | Condos and planned communities; not escrowed, but just as mandatory |
A $380,000 home with 10% down at 6.75% for 30 years: P&I is $2,218 — but add $348 property tax (1.1%), $150 insurance, and $171 PMI (LTV is 90%), and the true payment is $2,887. A buyer budgeting to the advertised number would be $669/month surprised.
| State (examples) | Effective rate | On a $380k home |
|---|---|---|
| Hawaii | ~0.29% | $92/mo |
| Colorado | ~0.51% | $162/mo |
| National average | ~1.1% | $348/mo |
| Texas | ~1.68% | $532/mo |
| New Jersey | ~2.23% | $706/mo |
Enter your county's actual rate (on the assessor's website, or estimate from the listing's tax history) — it's the difference between a comfortable and an impossible budget in high-tax states. The Property Tax Estimator goes deeper.
Put down less than 20% on a conventional loan and the lender requires private mortgage insurance — typically 0.3–1.5% of the loan annually depending on credit score and LTV (this tool assumes a middle-of-road 0.6%). The good news: it's removable. You can request cancellation at 80% LTV and it terminates automatically at 78%. On the example above, that's $171/month that eventually comes back — the PMI Removal Calculator computes your date.
Most lenders bundle taxes and insurance into the monthly payment and pay the bills from an escrow account. Two consequences worth knowing: your payment changes yearly when taxes or premiums change (the "escrow analysis" letter), and a shortage one year means a catch-up bump the next. The itemized table above is exactly what your escrow analysis will show.
Usually the estimate's tax and insurance lines: lenders often use placeholder figures until underwriting pulls actuals. This tool with your county's real tax rate and an actual insurance quote is frequently more accurate than an early Loan Estimate.
PMI is priced on credit score and LTV: roughly 0.3%/yr (760+ score, 15% down) to 1.5%/yr (640 score, 5% down). This tool assumes 0.6%; your Loan Estimate will show the quoted figure.
Not technically — it's paid to the association, not escrowed. But lenders count it in your debt-to-income ratio and you should count it in your budget, so this calculator includes it in the total.
Lenders cap housing costs around 28% of gross monthly income (the front-end ratio) and total debts at 36–43%. The Home Affordability Calculator works backward from your income to a price using exactly these rules.
No — they follow assessments and local rates, and typically rise over time. Some states cap annual increases (California's Prop 13); others reassess to market regularly. Budget for growth.
Often yes with 20%+ equity, sometimes for a small fee. You'll need the discipline to save the tax bill monthly yourself — the math is identical, just self-managed.
Yes — every input stays in your browser. Nothing is uploaded or stored.
Budget to PITI, not to P&I, and the biggest purchase of your life starts on honest arithmetic. Next steps: the Home Affordability Calculator to size the price range, and the Closing Cost Calculator for the cash you'll need at the table.