Estimate monthly payments, total interest, and payoff schedule by adjusting loan amount, rate, term, and down payment in your browser.
Lender pre-qualification tools usually show only principal and interest. That number is 20-35% lower than what actually leaves your bank account each month once taxes, insurance, and PMI are added to the escrow. Buyers who budget against the P&I number are routinely surprised at closing — this calculator prevents that by modeling the full payment from the start.
Example: $400,000 home, 30-year fixed at 6.51%, $4,800/yr tax, $1,800/yr insurance, no HOA. PMI estimated at ~0.75% annual on loan balance for illustration.
| Down payment | Loan amount | P&I | Est. PMI | Tax + Ins | Monthly PITI | PMI required? |
|---|---|---|---|---|---|---|
| 3.5% ($14,000) FHA | $386,000 | $2,441 | $241 (MIP) | $550 | ~$3,232 | Yes — FHA MIP, often for life of loan |
| 5% ($20,000) | $380,000 | $2,403 | $238 | $550 | ~$3,191 | Yes, until 78%/80% LTV |
| 10% ($40,000) | $360,000 | $2,277 | $225 | $550 | ~$3,052 | Yes, until 78%/80% LTV |
| 15% ($60,000) | $340,000 | $2,150 | $213 | $550 | ~$2,913 | Yes, until 78%/80% LTV |
| 20% ($80,000) | $320,000 | $2,024 | $0 | $550 | ~$2,574 | No |
| 25% ($100,000) | $300,000 | $1,897 | $0 | $550 | ~$2,447 | No |
The 20% threshold isn't magic — it just removes PMI immediately at closing. With less down, you still reach 78% LTV automatically on schedule (typically 8-12 years into a 30-year loan, depending on rate).
Example: $400,000 loan amount (so down payment already subtracted). Rates from Freddie Mac PMMS, May 21, 2026.
| Term | Typical rate | Monthly P&I | Total interest paid | Total paid |
|---|---|---|---|---|
| 15-year fixed | 5.85% | ~$3,343 | ~$201,800 | ~$601,800 |
| 20-year fixed | ~6.20% (estimate; PMMS doesn't publish weekly) | ~$2,919 | ~$300,600 | ~$700,600 |
| 30-year fixed | 6.51% | ~$2,527 | ~$509,700 | ~$909,700 |
The 15-year saves roughly $308,000 in interest vs. the 30-year on this loan but adds ~$816/month to the payment. The 20-year splits the difference. Many borrowers take the 30-year for payment flexibility, then prepay toward a 15-year-equivalent payoff — best of both worlds if cash flow ever tightens.
PITI = Principal + Interest + Taxes + Insurance — the four components your lender combines into one monthly payment. Principal and Interest pay down the loan itself; Taxes is one-twelfth of your annual property tax bill collected into an escrow account; Insurance is one-twelfth of your homeowners (hazard) insurance premium. Lenders bundle these because they want to guarantee taxes and insurance get paid (a lapsed homeowners policy or unpaid tax lien jeopardizes their collateral). This calculator also adds PMI if you're below 20% down and HOA dues if you enter them — so the full "monthly housing cost" line you see covers everything except utilities and maintenance.
It depends on cash-flow stability and how strongly you want to be debt-free. Using Freddie Mac's May 21, 2026 PMMS rates (5.85% on 15-year, 6.51% on 30-year), a $400,000 loan is roughly $3,343/month on a 15-year vs. $2,527 on a 30-year — about $816/month more. That extra payment buys roughly ~$308,000 in lifetime interest savings at those rates. The 15-year wins on total cost; the 30-year wins on monthly flexibility and the ability to invest the difference. A middle path that many financial planners recommend: take the 30-year, then voluntarily make 15-year-equivalent payments. You get the interest savings without locking yourself into the higher minimum payment if your income changes.
The most authoritative weekly source is Freddie Mac's Primary Mortgage Market Survey (PMMS), published every Thursday at noon ET. For the week of May 21, 2026 PMMS reported: 30-year fixed at 6.51%, 15-year fixed at 5.85% — both edged up from the prior week (6.36% and 5.71% respectively). The Federal Reserve Economic Data (FRED) series MORTGAGE30US mirrors PMMS for historical analysis. Daily rate trackers like Mortgage News Daily move ahead of PMMS because they survey same-day lender pricing rather than the prior week's locks. Your actual quote depends on credit score, LTV, loan size, property type, and points paid — expect a 0.25-0.75 percentage-point spread around the published averages.
A fixed-rate mortgage locks the interest rate for the life of the loan. An adjustable-rate mortgage (ARM) locks the rate for an initial period — usually 5, 7, or 10 years — and then adjusts annually based on a market index (commonly SOFR) plus a margin. Notation: a 5/1 ARM is fixed 5 years, then adjusts every 1 year; a 7/6 ARM is fixed 7 years, then adjusts every 6 months. ARMs include caps that limit how much the rate can move at first adjustment, at subsequent adjustments, and over the loan's lifetime. The initial ARM rate is usually 0.5-1.5 percentage points below a comparable fixed loan, so they make sense if you'll genuinely move or refinance before the fixed period ends. If you'll stay 10+ years and rate stability matters, a fixed loan is the lower-stress choice.
Plan on 2-5% of the loan amount (LendingTree, Bankrate, and most major lenders cite this range; Rocket Mortgage cites a wider 3-6%). On a $400,000 loan, that's $8,000-$20,000 due at closing — separate from your down payment. Major line items: lender origination (0.5-1.5%), appraisal ($500-$800), title insurance and search (varies dramatically by state), recording fees, prepaid property tax escrow (often 2-6 months collected upfront), prepaid homeowners insurance (full year #1 paid upfront in most states), and any discount points to buy down the rate. Your lender must deliver an itemized Loan Estimate within 3 business days of application under the TILA-RESPA rule — compare Loan Estimates from 3+ lenders to see real cost differences.
Under the federal Homeowners Protection Act of 1998 (HPA, signed July 29, 1998, effective July 29, 1999), PMI on most conventional loans terminates automatically when the loan balance is first scheduled to reach 78% of the original home value, based on the original amortization schedule — provided the loan is current at that time. If you're not current, termination is delayed until the loan is brought current. Separately, you can request cancellation at 80% LTV in writing if your loan is current and you have a good payment history. FHA loans are different — MIP (mortgage insurance premium) lasts the life of the loan for most loans originated after June 2013 with less than 10% down, regardless of LTV; the only way out is to refinance into a conventional loan once you have 20% equity. VA loans have no monthly mortgage insurance (one-time funding fee instead); USDA loans carry an annual guarantee fee for the life of the loan.
A recast is a lump-sum principal payment followed by the lender re-amortizing your monthly payment over the remaining original term at the original rate. You keep the same loan, same rate, same payoff date — but the monthly payment drops because the balance is lower. Lender fees are usually a flat $250-$500 (no closing costs, no credit pull, no appraisal). Recasts are the right move when you have a low locked-in rate (think 2.75-3.5% from 2020-21) and a windfall — sale of a previous home, inheritance, large bonus. Refinancing into a 2026 rate of 6.5% would cost more in extra interest than the recast saves you in monthly payment. Most conventional and jumbo loans allow recasts; FHA, VA, and USDA loans generally do not allow recasting. Confirm with your servicer — recast policies vary by lender even on eligible loan types.
Three common reasons. First, escrow over-collection: lenders are allowed to hold a two-month "cushion" beyond the projected escrow need under RESPA — if your initial escrow setup didn't account for an upcoming tax reassessment or insurance premium increase, your payment will be re-cast upward at the next annual escrow analysis. Second, property tax or insurance increases: even on a fixed-rate loan, the T+I portion of PITI can rise every year, often 3-8%. After a major insurance market shift (Florida, California, Colorado in 2024-25), some borrowers saw escrow lines jump $100-$300/month. Third, PMI you forgot to include: any conventional loan with under 20% down carries PMI ($100-$400/month typically), and FHA MIP is structurally hard to remove. Check your servicer's annual escrow analysis statement — it shows exactly which line moved.
For most homeowners, yes — interest on home acquisition debt (used to buy, build, or substantially improve your primary or second home) is deductible if you itemize, subject to IRS Publication 936 caps: $750,000 of combined acquisition debt for loans taken out after December 15, 2017; $1,000,000 grandfathered for loans taken out between October 14, 1987 and December 15, 2017. Property taxes are deductible as part of the SALT (State and Local Tax) cap, currently $10,000 total per return (state income tax + property tax combined). Most W-2 households now take the standard deduction ($16,100 single / $32,200 married filing jointly in 2026, indexed annually) and don't itemize — so the interest deduction only matters if your itemized total beats the standard deduction. PMI premiums are not currently deductible for tax years after 2021. Confirm with a CPA; rules change with each major tax bill.