How to Use the US Mortgage Calculator
Our Mortgage Calculator computes your full PITI payment — the complete monthly housing cost that lenders and real estate agents use when evaluating loan affordability. PITI stands for Principal, Interest, Property Tax, and Insurance, and represents the true monthly cost of homeownership — not just the loan payment. Most online mortgage calculators only show the P&I component, significantly underestimating what you'll actually pay each month.
Enter your home's purchase price and your down payment. The US conventional loan standard for avoiding Private Mortgage Insurance (PMI) is a 20% down payment. If your down payment is below 20%, lenders typically require PMI — an additional monthly cost that protects the lender (not you) in case of default. PMI rates in the US generally range from 0.5–1.5% of the loan amount annually and can be removed once your equity reaches 20%. Enter your current Annual Interest Rate (APR) — note that rates change daily, so always verify with your lender or check current rates at Freddie Mac's weekly Primary Mortgage Market Survey. Finally, enter your estimated annual property tax (the US national average is ~1.1% of assessed value, though rates vary enormously by state — New Jersey averages over 2% while Hawaii is under 0.3%) and your homeowner's insurance premium.
The color-coded PITI bar and breakdown table make it instantly clear how much of your monthly payment goes toward building equity versus covering costs. Understanding this breakdown empowers US homebuyers to compare different loan terms, evaluate the cost of PMI, and determine how much house they can genuinely afford. The 28/36 rule, widely used by US mortgage lenders, suggests that your PITI should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. Use this calculator to verify affordability before talking to a lender. All calculations are fully private and browser-based.
Frequently Asked Questions
PMI (Private Mortgage Insurance) is required by US conventional lenders when your down payment is less than 20% of the home's purchase price. Under the Homeowners Protection Act (HPA), you have the legal right to request cancellation of PMI once your loan-to-value (LTV) ratio reaches 80% (meaning you own 20% equity). Lenders must automatically cancel PMI when your LTV reaches 78% based on the original amortization schedule, even if you don't request it.
FHA loans (backed by the Federal Housing Administration) require as little as 3.5% down and are more accessible to borrowers with lower credit scores (580+). However, they require mortgage insurance premiums (MIP) for the life of the loan in most cases. Conventional loans require higher credit scores (typically 620+) but offer lower overall costs for borrowers who qualify, especially once PMI is eliminated at 20% equity. VA loans (for veterans) and USDA loans (rural areas) offer 0% down options.
The widely used 28/36 rule states your monthly PITI should not exceed 28% of gross monthly income, and total monthly debt (PITI + car loans + student loans + credit cards) should not exceed 36%. Most US lenders use a 43% total debt-to-income (DTI) ratio as a hard cap for loan approval. On a $80,000 annual salary (~$6,667/month), the 28% rule suggests a maximum PITI of about $1,867/month.