Mortgage Calculator

PITI stands for Principal, Interest, Taxes, and Insurance. It's the complete monthly payment you'll make on your mortgage:

• Principal - The actual loan amount you borrowed
• Interest - The cost of borrowing money from the lender
• Taxes - Annual property taxes divided into monthly payments
• Insurance - Homeowners insurance to protect your property

Some lenders also include PMI (Private Mortgage Insurance) if your down payment is less than 20%.

Down payment requirements vary by loan type:

• Conventional loan: 3-5% minimum, 20% to avoid PMI
• FHA loan: 3.5% minimum with 580+ credit score
• VA loan: 0% down for eligible veterans
• USDA loan: 0% down for rural properties
• Jumbo loan: 10-20% typically required

Pro tip: A larger down payment means lower monthly payments and less interest paid over time.

Mortgage rates change daily based on economic conditions. As of 2024, here are general guidelines:

• Excellent credit (740+): 5.5% - 6.5%
• Good credit (680-739): 6.0% - 7.0%
• Fair credit (620-679): 6.5% - 7.5%
• Poor credit (below 620): 7.5%+ or may not qualify

Factors affecting your rate: credit score, down payment, loan term, debt-to-income ratio, and property location.

15-Year Mortgage:

• ✓ Higher monthly payments
• ✓ Lower interest rate (typically 0.5-1% lower)
• ✓ Much less total interest paid
• ✓ Build equity faster

30-Year Mortgage:

• ✓ Lower monthly payments
• ✓ Higher interest rate
• ✓ More total interest over time
• ✓ More affordable monthly cash flow

Example: On a $300,000 loan at 6% interest, a 30-year mortgage has a $1,799 payment with $347,000 total interest, while a 15-year has a $2,531 payment with only $155,000 total interest.

Closing costs are fees paid at the end of the home buying process, typically 2-5% of the loan amount. Common closing costs include:

• Loan origination fees (0.5-1% of loan)
• Appraisal fee ($300-500)
• Title insurance ($1,000-2,000)
• Credit report fee ($30-50)
• Escrow deposits (property taxes + insurance)
• Recording fees ($100-200)

On a $300,000 home, expect $6,000-15,000 in closing costs. Some costs can be rolled into the loan or paid by the seller.

Property tax is a significant part of your monthly housing cost. The average US property tax rate is 1.1% of the home's value annually, but varies by location:

• Low tax states: Hawaii (0.27%), Alabama (0.37%), Colorado (0.51%)
• High tax states: New Jersey (2.21%), Illinois (2.05%), New Hampshire (1.93%)

On a $350,000 home at 1.1%, you'd pay $3,850 annually or $321 per month in property taxes alone. Always research local tax rates before buying.